Cosgrove Gaynard Solicitors

Mortgage Documentation: Explained

If you are buying a property and seeking finance, there are certain documents that will be required by your bank.

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When does the bank issue your loan offer?

 Once you are sale agreed on your property and have instructed your solicitor, you will need to inform your bank or lending institution of your solicitor’s details so that the bank can issue your loan offer and loan pack to them.

Documentation

The bank will most likely send you a copy of your loan offer which will include the terms of your loan along with general and special conditions of the loan agreement.

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Further to this loan offer, a loan pack will be sent to your solicitors which includes all of the documentation that you will need to sign with your solicitor and return to the lending institution.

Not every bank is the same in terms of what documentation is signed with your solicitor and what documentation is signed in branch with the bank but the following are generally required:

1. Loan Acceptance. This is your acceptance of the terms and conditions of your loan offer.

2. Deed of  Assignment. This is the transfer of the benefits of your life policy to your lender so that should something happen to you, the proceeds of your life cover is paid over to the bank without any delay.  

3. Solicitor’s  Undertaking . This is an undertaking from your solicitor to the bank (after they have reviewed your title) to confirm that there is good title to the property. The undertaking also provides that the solicitor will register the bank’s charge over the property and return title deeds to them to hold for the duration of the mortgage. As part of this undertaking, a section referred to as the clients retainer and authority, must be signed by your as purchaser. This authorises your solicitor to act on your behalf with the bank and indeed authorises them to provide the undertaking referred to above. T

4. Form 51. This is also known as a Deed of Charge. This is essentially your mortgage deed. Two copies of this are signed and once the transaction has concluded they are registered in the Land Registry to ensure the bank’s charge is registered on the mortgage.

5. Cheque  Requisition / Fund Requisition Form. This document is sent into the bank by your solicitor just before closing to let the bank know that closing is imminent and funds can be released. Not all banks require a clients signature on this form but some do.
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Your solicitor will run through all of the above documents with you in detail however hopefully this gives some insight into what to expect. Should you have any queries, please contact us to discuss.