As mortgage lenders move towards standardised criteria, many people find that their direct
applications fail. This is not due to anything wrong with the applicant. It is more likely that an applicant’s
requirements do not fit the front line tick box profiles. The majority of mortgage lenders have now moved towards
deskilled centralised online application systems which require less staff costs, and filters out any potential
applicants that do not "fit". A few examples are listed below where the mortgage lender declined, yet we were able to
help get the mortgage for our client:
- Wants a mortgage to raise capital to invest in their own business or another property
- Wants a mortgage for a dependent relative
- Has changed addresses frequently in the last three years
- Has changed employment frequently in the last twelve months
- Has income from various sources
- Has tax exemption from earnings such as from ships or oil rigs
- Wants a new home with new partner but continue to pay for earlier partner/wifes residence
- Has County Court Judgements, defaults and or arrears
- Wants a mortgage for a 2nd home/holiday home
- Wants to invest with a mortgage in buy to let property
- Wants to buy run down property to renovate or develop
- Needs bridging or commercial finance
- The property has agricultural ties
- Wants to build/develop a property in stages
- The lender does not like the property type
Self employed mortgages are available but require careful presentation.
Most mortgage lenders have changed their "credit scoring" and "credit profiling" systems in an effort to reduce the
risk of borrower's likelihood of getting into difficulties. Understanding credit files and profiling is now more
important than ever before.
People looking to move residence should seriously consider holding on to their existing property and renting it out
(provided this property has significant equity) and taking out a new mortgage for the new property. This process is
known as using a Let to Buy mortgage. It avoids being forced to sell at a time when the market is challenged and avoids
the risk of "property chains" breaking down.
Families are looking at ways of helping their sons and daughters get on the property ladder and there are several
mortgage strategies that we can discuss and advise on.
The low interest rates are only for existing borrowers or for those with substantial equity. New buyers are looking at
interest rates much higher than the Bank of England Rate would usually suggest.
Knowing the best lender to place a "packaged application" to ensure success is vital. DIY can cause negative points on
credit scoring every time your credit file is searched, making it harder to get the mortgage you want.