Documentation - what do I need to keep?

Let_Us_See

One thing that is clearly evident from reading mortgage threads is that people are disadvantaged and their probelms exacerbated purely by the fact that when they "hit" a problem they do not have sufficient documents and information available to summarise and review their situation. Just read some of the posted comments!

Therefore, what mortgage documents should be retained for future reference? Many people keep absolutely everything, but realistically the following should suffice:

1. Initial Disclosure Document (IDD) - basically, covers your relationship with broker/lender, sets out fees, terms and conditions etc. This should be issued at first meeting with broker/bank, or a soon as possible afterwards. Do not continue application until you have a copy.
2. Key Facts Illustration (KFI) - presented before mortgage application is submitted, and contains full details and fees for the recommended mortgage scheme. Again, do not proceed with application unless you have a copy.
3. Copy of mortgage application - if a copy is not provided, then demand a copy from broker or lender. This is a vital document as it summariies the information submitted to the lender, and if incorrect, could constitute fraud.
4. Mortgage offer. Forms contract between lender and borrower and details in the offer should correspond with details in KFI. If not, ask why?
5. Suitability letter - should provide confirmation and the reasons why broker/lender recommended the mortgage. In any future dispute this document is essential.

All this paperwork will probably fit into a standard A4 envelope (make sure it is marked "mortgage documents") and put in safe place. This simple procedure will ensure that if you ever need to address a problem with your mortgage then you have sufficient information.

Finally, if you take out any policies to protect your mortgage, such as life cover or income protection, the sames rules apply.

worried_jim

I've kept the lot- doesn't take up any space in a file so there is no problem. I recently referred to a document and I took the mortgage 10 years ago.

Thrugelmir

Let_Us_See wrote: »

One thing that is clearly evident from reading mortgage threads is that people are disadvantaged and their probelms exacerbated purely by the fact that when they "hit" a problem they do not have sufficient documents and information available to summarise and review their situation.

Greatest failure of borrowers is to read documents properly at the outset. Particularly contractual ones.

kingstreet

I give a copy of the factfind and any broker fee agreement form on top of the above and provide a folder for it all to be kept in.