Whether you’re buying your first home or remortgaging your property, your mortgage broker must provide you with a Key Facts Illustration (KFI). If you’ve got no idea what a KFI is, read on:
What is a Key Facts Illustration?
A Key Facts Illustration is a document that mortgage brokers create for you in the early stages of your mortgage application. It will outline the mortgage that your broker recommends along with details of the loan.
It will outline the following:
- Mortgage amount
- Mortgage term
- Interest rates during the fixed rate period (if applicable)
- Interest rates once the fixed period has ended (if applicable)
- Monthly mortgage repayments
- Any fees you’ll be expected to pay
When will I receive a KFI?
You’ll be given a KFI document once you’ve spoken to your mortgage broker and they’ve had time to do some initial research regarding the most suitable mortgage deals for you.
What information will I need to provide my mortgage broker with to get a KFI?
In order to provide you with an accurate KFI, you’ll need to provide your mortgage broker with information such as:
- Your income
- How much you’ve saved as a deposit
- How much you wish to borrow
- The value of the property you want to buy (if you’ve already chosen a property)
- The amount of time you’d like to fix your mortgage for/li>
- Whether you want a 25, 30 or 35 year mortgage>
How long is a KFI valid for?
Since the mortgage market is constantly changing and specific mortgage products are often withdrawn and replaced with alternatives, most KFI documents are only valid on the day they’re produced. If the mortgage deal you choose expires or is modified before your broker submits your application, they should notify you of any changes.
Is a KFI the same as an agreement in principle?
A KFI is not the same as an agreement in principle. A KFI simply outlines the details of a particular mortgage deal, while an agreement in principle is a document from the mortgage lender to say that they’re likely to give you a mortgage based on your current financial circumstances.
What happens once I’ve received a KFI?
Read through your KFI and decide whether this is the right mortgage for you. If you’d like to proceed, your mortgage broker will begin to put your mortgage application together. At this stage they’re likely to ask you for proof of income in the form of payslips, proof of your address in the form of passports and utility bills, and evidence of your deposit in the form of bank statements. Once you’ve given your mortgage broker all the documents they need, they’ll submit your application to the chosen lender.
