That said, business remains brisk and lenders are keen to move their mortgage funds quickly and have targets to hit in the remainder of the year. So, if everything about your application makes sense then there should be a lender and product ready to fit your requirements. With this in mind a very important part of the application process is the completion of a Fact Find. No self respecting mortgage broker will be without one! This is a data capture document which examines everything about the applicant in a financial sense ensuring that the advisor has as full a picture about you as possible before providing formal advice and recommendation. At that time, your advisor will also require a great deal of supporting documentation as part of the process. This will include the need to prove identity and residency, usually by way of a passport and utility bill. Other required documents will include proof of income by way of pay-slips or accounts and three months personal and business statements. The list is not exhaustive and will be determined by individual lender requirements and these can vary quite widely. Don’t be surprised as the lenders are entitled to gather sufficient information about you to make a reasoned and sensible lending decision.
I have mentioned in recent weeks the advent of Mortgage Market Review (MMR) and the impact it will have on lenders approach to submitted applications. At the risk of being boring, I feel strongly that this is a subject worth continuing as the impact on acceptance of mortgage applications could be considered as seismic. MMR places far more responsibility on the lender for making fully informed decisions on new applications and with a particular emphasis on affordability. Not just for now but taking into account the foreseeable future too! Lenders will require the applicant and their advisor to assess what may happen financially in the next five to ten years and their underwriting decisions will be based around this. So, the message is ensure that when you start the application process you have a full schedule of income and expenditure to hand. Advisors and lenders worth their salt will require this.
I regularly close with the suggestion that you talk to a qualified advisor before you start the application process. This has never been more important than now given the new world of MMR