Documents to help you shop around
 about our mortgage services
When you approach a mortgage broker or lender, they will give you this document. It will tell you about the service they will provide; whether they will give you advice or not; whether they consider all the mortgages in the market, a limited selection or just one lender’s products; and what they’ll charge you for the service. Use this document to shop around and get the service you want.
about this mortgage
This is sometimes called a key facts illustration. It summarises the most important features of the mortgage in a standard way so you can compare it with other similar mortgages. Whenever a firm makes a mortgage recommendation to you it must give you a key facts illustration on that basis.
You will still get a key facts illustration if you ask for a written mortgage quote whether you choose to get advice or not. So to help you shop around, once you know how much you might want to borrow, ask for one. By comparing key facts illustrations for different mortgages you will be able to work out which one is best for you.You must always be given a key facts illustration before you apply for a mortgage so that you can make sure it’s right for you.
Use the APR
In adverts for loans, such as mortgages, you may see a percentage figure called the APR. This stands for 'Annual Percentage Rate'. This is not an interest rate but a figure which represents the total charge payable each year for a loan.
The important thing is to use the APR to compare costs when you are shopping around for a loan. You do not need to know how to work out an APR.
You should also consider other aspects of the loan, as well as the APR, before deciding whether a particular loan is right for you.
Approvals in principle and credit checks
When shopping around for your mortgage, a lender or mortgage broker may offer to give you an ‘approval in principle (AIP)’ or a ‘mortgage promise’. This is a promise to lend you a given amount on certain terms and conditions. This can be helpful once you have narrowed down your search and are ready to make an offer to buy a property. The firm will usually do a credit search to provide an AIP and this will register on your credit file, so it might not be a good idea to get one if you are only in the early stages of shopping around. A high number of credit checks over a short period of time may cause problems when you actually apply for a mortgage.
There may be some products where the interest rate depends on your credit record. In this case a firm will do a ‘quotation search’ rather than a full ‘credit search’.
| If all you want is an illustration to shop around for the best deal and you are not making an application you don’t usually need to agree to a credit check. |
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Why use an APR?
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