• An application after being received by the lender along with the proof of income, address, good payment record, with previous loans the rent history of yours will also be needed. Actually the lender after receiving the loan application from you checks the application and obtains information from credit reference agencies about your credit rating.
  
  
• After the credit checks are over the lender may request the employers of the applicant or to any previous lender to do a valuation of the property which is to be mortgaged. When the lender will be satisfied with the answers of the applicant he will issue a formal offer of advance to the applicant and the applicants' solicitor.
  
  
• After you receive a formal offer from the lender your solicitor should check all provisions of the offer and prepares a contract to finalize an official date of exchange of the property as to when you will be able to take over the property as well as the mortgage.

Although this procedure may seem complex but if you submit information in the application rightly then it will not take enough time to obtain the loan and the property.

The cost of obtaining a mortgage differs from lender to lender and also depends on the type of mortgage you want to avail. Many lender usually charge a fee to cover the cost of valuation of the property so that sufficient security is there when mortgage loan will be disbursed. Again some lenders charge fees for actually obtaining the mortgage. Besides this most of the lenders will charge a special fee if the mortgage exceeds 75% of the value of the property. This special fee is known as Mortgage Indemnity Premium. This fee is a one time fee charged by the lender to buy an insurance policy which protects the lender only. When you fail to pay the money you owe to the lender then the lender place the claim on the insurance company to make up the difference. It is a sort of unfair on the part of the borrower as you have to pay to protect them and still the insurance company can recover the money from you which will pave the way to your personal file of any credit reporting agencies.

Another fee which is important to remember is the monthly cost of buildings and content insurance. Thus you while availing a loan by mortgaging your property should try negotiate with your lender professionally and always try to protect your interest as much as you can.

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