First Direct mortgage application process (3 key tips)

In this brief guide, we will cover the First Direct mortgage application process, what you can expect and how you may want to consider going about it.

The First Direct mortgage application process

Once you have gotten all your documents together and have gotten your First Direct mortgage in principle then you can look to get a mortgage offer by starting your First Direct mortgage application online or in the branch.

Before you fill in your First Direct mortgage application you will be shown a key facts illustration that provides all the details about the mortgage product you are about to apply for.

Apply for the First Direct mortgage

When filling in your First Direct mortgage application you will need to provide:

Income – Your gross income details should match the amounts shown on your proof of income documents e.g. payslips and details of any other income you have

Outgoings – Details of any loan repayments and other monthly expenses. You may also need to provide details on any credit card balances.

Address – Your current address and postcode and the date you moved to this address. You may also need to provide your previous address history.

Bank details – Your bank account and sort code number

Contact details – Your employer’s, solicitor’s, and estate agent’s address and postcode

You may not be able to start a First Direct mortgage application for Help to Buy, Right to Buy, Shared Equity, or Interest Only mortgages online.

Once you have completed the First Direct mortgage application it will be assessed and the mortgage underwriter may request further details or documents. 

After this, the home will then be valued and a mortgage valuation report produced for the mortgage lender.

Home valuation

Some mortgage lenders do desktop valuations which are carried out online whilst others will instruct a surveyor to go inspect the house.

 This can be a drive-by survey where the survey is simply from the outside of the house or a more in-depth survey where the surveyor will go into the home (with permission) and look everywhere.

If First Direct finds that the home is valued less than you are buying it for then they may reduce their loan to value rate on the mortgage which will mean you need to put down a bigger mortgage deposit.

If you are not already using a government first-time buyer or home mover scheme then you may want to consider if you are eligible for any to see if they can increase your mortgage deposit or reduce the total cost of purchasing the property.

You can also carry out a more in-depth survey at a cost to you if you dispute the valuation provided by First Direct or if you just want some peace of mind.

Receiving a mortgage offer

At this stage of the First Direct mortgage application, First Direct will then provide you with a First Direct mortgage offer as long as everything is fine with your mortgage application. 

If anything has changed since you first made your First Direct mortgage application then you may want to declare this change of circumstances to First Direct or they may withdraw the mortgage offer if they find out.

Completion

At this stage of your First Direct mortgage application, you are now ready to complete the home purchase. This will be handled mostly by your conveyancer and the seller’s conveyancer.

You can read more about the First Direct mortgage application process here

Can I get a mortgage with First Direct?

Yes, you can get a mortgage with First Direct but before you make your First Direct mortgage application you may want to ensure you are very well prepared and are likely to get a mortgage offer.

Here are a few things you may want to do a few months before you make your First Direct mortgage application:

Get on the electoral roll:

When you get on the electoral roll this gives you more credibility to First Direct as it confirms your address and in some cases how long you have been living there.

Ensure you don’t have any recent payday loans:

Mortgage lenders don’t like lending to borrowers with a bad financial habit. Payday loans are seen as a bad financial habit and you should avoid taking any out at least a few months before starting your First Direct mortgage application.

Use a credit card to build credit:

You may want to get a credit card in order to build credit by repaying your credit card on time every month.

You may also be able to use a credit builder loan to build credit.

Check your credit report:

You should check your credit report with all four credit bureaus before you start your First Direct mortgage application to ensure there are no errors on your credit report which may then affect your ability to get a mortgage with First Direct. 

You can do this through checkmyfile and in case you are wondering the last credit bureau is called Crediva.

Get your documents ready

You should then begin to get your documents ready for your First Direct mortgage application.

These will usually include:

3 months worth of bank statements

3 months worth of payslips

Your P60 tax return

Your SA302 calculation form if you are self-employed

Your CV

Your contract if you are a contractor

How do I apply for a First Direct mortgage?

You can now apply for a First Direct mortgage by going into a First Direct branch or by applying online through the First Direct paperless online mortgage application.

How long does a First Direct mortgage in principle last?

A First Direct mortgage in principle will usually be valid for about 90 days.

Can I borrow more on my First Direct mortgage?

Yes, you may be able to borrow more on your First Direct mortgage if you still meet the First Direct mortgage affordability requirements.

When starting a First Direct mortgage application or considering one you should really take a step back and consider if you want to get a mortgage by going to First Direct directly or seeking to go to a mortgage broker who may likely have access to thousands of products from the mortgage market rather than just a few products which may be available from First Direct.

How to apply for a First Direct mortgage?

You may want to use an independent mortgage broker to help you get a mortgage on your new home.

Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases.

This could be over 11,000 mortgage products. This may have some advantages rather than going directly to a mortgage lender.

A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you based on your mortgage affordability.

After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle. 

This will allow you to shop for your home as more estate agents and sellers may take you seriously and it will also give you confidence that your mortgage is indeed a possibility before you make a full mortgage application. 

Once you have found a home you want to buy and are satisfied with the mortgage offer for your mortgage then the mortgage broker will then look to get you a mortgage offer.

This will come with a key facts illustration document that details the features of your mortgage including how much you will pay per month.

It will also contain information on if there are any limits such as early repayment fees, or annual overpayment limits.

If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer.

Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it.

They will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer, and set a completion date with the seller or their conveyancer.

In this brief article, we discussed the First Direct mortgage application and what you can expect in the application process.

If you have any questions or comments please let us know.