2. DECISION IN PRINCIPLE

Once you’ve spoken to your mortgage adviser and agreed to proceed they will submit your details to obtain a Decision in Principle which will show you how much you could borrow. We calculate this using the following information:

• Your income and outgoings
• Your deposit amount
• The results of an initial credit search
• The monthly mortgage repayments
• The value of the property you’re looking to buy or remortgage

The amount shown in the DIP is an initial advisory figure based on the information you have provided and at this stage it’s not yet a commitment from Kensington to lend to you. However, if you decide to proceed with us we’ll use the information you’ve already provided for your formal mortgage application.

If you’re looking to buy a new home, once you have your DIP you’re free to start booking appointments and viewing properties!

Letting us know if you are a vulnerable customer

At Kensington, we want to ensure that we offer the best service to all our customers, and we recognise that vulnerable customers can sometimes need more, or different types of support. That’s why, when your broker takes you through the mortgage application form, they will also ask if you have any vulnerabilities.

To give you an idea of the types of circumstances that are defined as ‘vulnerable’ we’ve put together a handy list below:

Health vulnerabilities:

These are defined as health conditions or illnesses that affect a person’s ability to carry out day to day tasks which could then impact their ability to manage finances. These include conditions such as:

• A physical disability
• Critical, severe or long-term illness
• Hearing or visual impairment
• Mental wellbeing
• Memory or learning impairments
  

Life event vulnerabilities:

These are defined as events which impact a person’s life such as bereavement, job loss or a relationship breakdown. Events could include:

• Experiencing a bereavement
• The breakdown of a relationship
• Planning for, or entering retirement
• Experiencing domestic or financial abuse
• A change in income that was unexpected
• Caring responsibilities

Capability vulnerabilities:

We recognise that some people may have very little knowledge of financial matters or lack confidence when it comes to managing their money.

This could be for a number of reasons, but examples can include: difficulty with reading, for example, if English is not their first language or they are dyslexic.

Another example is where they may not be confident when it comes to using digital devices such as laptops and they don’t have anyone who is able to help or support them

Resilience vulnerabilities:

These vulnerabilities can occur when  someone has limited savings to fall back on in emergencies or they rely on all their monthly income to cover planned expenses. This can leave little room for unexpected or increased costs.

This can mean household finances are more at risk from changes in income, costs to run the home, or emotional shocks which are often experienced following a life changing event.

If you have any of the above vulnerabilities, please let your broker know so that we will be able to offer you the right assistance, if or when you need our support.

4. ASSESSMENT, VALUATION AND OFFER

As soon as we’ve received your full application, we’ll swing into action.

We'll start by instructing our Surveyors to book an appointment to value the property you want to buy or remortgage.

Then, we will review your application and supporting documentation. If we need any further information to support your application or we need to clarify any points, we’ll let your mortgage adviser know so they can work with you to supply the required information.

After this, we’ll keep updating your mortgage adviser on the progress of your case. We’ll confirm when the valuation is booked for and then advise what the property has been valued at. We’ll also confirm if the supporting documentation you’ve been asked to supply is sufficient or we need to see anything else. Finally, if we have everything we need to approve your application, we’ll send your mortgage adviser a formal mortgage offer.

5. ONCE YOU'VE RECEIVED YOUR MORTGAGE OFFER

Once you’ve received your mortgage offer we’ll work with your solicitor who will let us know your moving date… and we’ll transfer the cash on your chosen completion date.

If we can’t say yes... sometimes we may have to decline a mortgage application. If that happens we’ll always talk to your mortgage adviser and where we can, give a full explanation as to the reasons why. And if you could apply again at a later date, we’ll let them know that too.