Actually placing a mortgage with a lender is not normally difficult. The hardest part, in the recent climate, is getting the mortgage through to completion!
However, a number of lenders are happy to think outside the box and take a manual approach to lending. One recent example was with the Harpenden Building Society who helped complete a £1 million interest only deal on a new build flat for a client in their 50’s.
The transaction was for a very upscale 19th floor new build property situated on the South Bank of the River Thames in London. It had a valuation of circa £2 million with some units in the development having restrictions to borrowers over 55’s and was above a commercial property.
As this was also over a twenty year term, this took the clients age in to retirement. However, as the property was to be let out, the building society took this into consideration, along with their residential property and allowed the deal to proceed. This was on the basis there was enough equity in the properties to repay the lenders loan if they needed to.
This example highlights the value attached to many building society lending propositions, in terms of their flexibility and approach to more criteria-based lending.
But as with all funders, try not to give lenders an excuse to decline your application or refuse to lend to you. Try to pay bills on time, don’t miss payments, and especially not mortgage payments! Any missed (or sometimes late) payments will be registered on your credit file and this is normally used as the basis of a decision to lend to you. Lenders can re-credit search/credit score you right throughout the whole mortgage process.
Finally, we are seeing general processing delays across the market. Some lenders are up to ten working days behind on processing and we have experienced recent telephone calls taking over an hour to receive any kind of response! These are just on the broker side so who knows how customers are faring! So, speak to your local (and long established) independent and whole of market brokerage and let them take the stress away from you.