Several lenders are struggling to process mortgage applications in a reasonable period of time because they are struggling to get to grips with the new mortgage rules. Some are taking as long as 18 working days to assess applications.
Borrowers don’t have the inside knowledge to identify which lenders to avoid because of the backlog of applications they are dealing with. Those in a contract race or competing against a number of interested buyers who are able to move faster are at a disadvantage and risk missing out on a property. Chains are breaking because other buyers and sellers simply can’t wait.
The main issues are hold-ups with applications due to new bank policies and the new requirements for detail around the deposit. We have had many clients struggling to prove where their deposit has come from: not because there is anything dodgy about it but because memories simply don’t stretch back that far in terms of remembering where various components came from.
The real loser is the borrower who faces the unwelcome scenario of multiple credit searches as they go from lender to lender looking for a mortgage. This is bad news for a borrower’s credit file and ultimately makes the whole process of getting a mortgage that much harder.
However, it is possible to find a lender which isn’t struggling and can turn around an application within several working days. Contact Anderson Harris for more details.