It all starts here
We’ve put together this simple step-by-step guide to help you understand how we deal with a mortgage application at every stage.
There are four key stages to the mortgage application process.
Steps 1: Assessment
Agreement in Principle
Before you begin your mortgage application, you can get an indication of what we may be able to lend you by completing our online Agreement in Principle.
How we assess your application
We look at a number of factors to make sure you’ll be able to afford the size of your loan. We’ll take into account how much deposit you’re putting down, your income, household bills and outgoings, savings and any other financial commitments you may have.
To help us understand your financial position clearly and move your application forward, we will ask you for additional supporting documents, including your payslips and bank statements. If you’re employed, these may include your payslips or up to three months’ bank statements, depending on the type of mortgage you have chosen. If you’re self-employed, we may ask for up to two years’ of accounts.
Completing your assessment
Once our team has assessed your application, checked any additional documents and are confident you’ll be able to meet the repayments, we then move to the next stage - Offer.
Quick tip: At this stage you could consider which solicitor you will appoint to act on your behalf. If you’re remortgaging to Ulster Bank, we will appoint our panel solicitor, so there’s no need to find your own.
Step 2: Offer
Once your valuation can be completed, we carry out our final checks and will send a copy of the valuation to your solicitor. If the valuation shows a decline in the value of the property from your agreed Purchase Price, or the Estimated Value you provided on your application, then the Bank may decide not to proceed with this mortgage and may withdraw your Loan Offer, or may proceed on the basis of a reduced amount. This unfortunately introduces an element of uncertainty into the home buying process.
Changing your offer before completion
We make our offer based on the details you provided in your original application, such as the property purchase price loan amount and your specific mortgage product. If you want to make any changes to these, now is your final opportunity to discuss them with your Mortgage Specialist before completion.
Step 4: Completion
If you are buying a property, once your solicitor has made all of their checks, they will agree the dates for exchanging contracts and completing the purchase with the seller’s solicitor. On exchange of contracts, your deposit is paid to the seller. You’ve now committed to buy the property.
The last step is completion itself. This is where , if you are remortgaging, we either release the funds to you or to your previous lender to pay off the redemption amount and clear your old mortgage.
If you’re buying a new property, it’s when your solicitor sends us the Certificate of Title and in return we release the funds to them. They then pass those funds to the seller’s solicitor. Once the seller has received the money, the house purchase is complete. You get the keys to your new home. Congratulations.