Clients 'shocked' by changes to mortgage application process, say brokers

Increasing numbers of Springtide Capital’s clients have been shocked by the extent of changes to the mortgage application process in the last six years.

Related topics:  Mortgages
Amy Loddington
20th February 2014
Mortgages

Many have reported that they are finding the process much more ‘challenging and time consuming’ than in previous years.

Before 2007 mortgage applications would regularly go through in under 10 working days, however clients now find they will have to wait at least 15 working days and often much longer. This has the result of delaying exchange dates and often jeopardises the entire sale.

This trend is largely attributed to regulatory change and the fact that lenders are now being far more diligent. Compared with fast track applications from 2007 which relied on a credit score alone, lenders will now ‘forensically’ examine all income and expenditure before agreeing to make an offer.


Henry Knight, Managing Director of Springtide Capital, has said that the process can still be managed quickly and efficiently, as long as clients are prepared and informed in advance of what is required.

He said:

"Brokers now need to be more diligent than ever when gathering information about their client's financial circumstances. It is important to ask as many questions as possible in the initial meeting to obtain an accurate picture of their level of affordability. As we all know, MMR is fast approaching and brings with it a renewed onus on providing even further detailed analysis of client income and expenditure, which is why you can never ask too many questions during and even before the first meeting."

More like this
Latest from Property Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.