THE MORTGAGE MARKET REVIEW AND WHAT IT MEANS TO YOU.
You can be forgiven for thinking this has nothing to do with you as you are not a mortgage broker, but in reality it may dramatically affect your ability to acquire the mortgage you want.
Officially the review takes effect this Saturday, the 26th. The purpose is to ensure that mortgage lenders assess applications far more thoroughly and stress test the finances of applicants to ensure that not only can they afford the mortgage now, but to continue too if rates increased or circumstances changed. The lenders will be looking closely at lifestyle, committed costs including insurances, gym memberships, child care costs, council tax etc etc. Hopefully now you can see the effects that this will have on mortgage applications, they will take far longer than before. More applicants will be declined on affordability if they don’t take the correct advice in the first place. It may take weeks before you hear the bad news. Some lenders are reporting that there is an up to a three week wait before they can see an applicant, the interview can take up to three hours, the delays that will occur whilst additional information is acquired, delays in processing and underwriting and then finally the decision.
How can Westexe Mortgage Solutions help? We have been preparing for this for the last two years, we have a thorough understanding of how each lender works, there understanding of these changes and the changes they have applied to their systems. In other words who asks for what and who best suits our client’s circumstances. We will help you to prepare an application to comply with the changes, to limit any delays, there will not be a three week wait for an appointment, we will monitor the progress of an application and deal with and advise on any queries without delay. We will keep you fully up to date with the progress and importantly manage your expectations during the process.
I hope that you will now understand how these changes can affect you. Do not rely upon a Decision in Principle Certificate, as quite often these prove not to be worth the paper they are written on, especially now after these changes and a full application is made. I do strongly believe a whole of market approach for mortgage applicants is more important than ever as only firms like ours will have an understanding of which lender best suits a purchaser’s profile.