Here are the Top Five things that we find delay mortgage applications, ensure you tick these off and your mortgage application will go through much quicker and easier:-
1. Middle names; this unbelievably simple thing probably causes more delays than anything. Leaving off your middle name from your documentation, fact find or application can cause all sorts of delays later. Should your offer have been issued without a middle name for example and then your solicitor tells the lender you have one the lender will invariably insist on the offer being reissued! That could take several days to do and may even result in another credit search.
2. Changing the purchase price; you may have agreed a new purchase price, incentive or cashback with the seller but it’s imperative your mortgage offer reflects the accurate price. Again if this is discovered at the last minute your offer will need to be reissued.
3. Poor Credit; always get a copy of your credit file before applying for a mortgage. It’s surprising how many people don’t realise they have credit issues until they apply for a mortgage.
4. Leasehold length; getting the length of your leasehold wrong can mean a declined mortgage and wasted fees. Lenders all have different lease lengths that they will lend on and while you might not think it matters if it’s 69 years or 71 it can matter hugely to a lender. If this isn’t discovered until the legals are done then you could lose application and valuation fees needlessly. Dig out your lease or get a copy of the title from Land Registry to be sure before applying. If you’re buying a property don’t trust the estate agent or seller and download a copy of the title yourself. In a recent case the buyer had been duped into believing they were buying a property with a significantly longer lease than it actually had.
5. Address history; don’t ever think ‘you know best’ where your address history is concerned. It’s imperative to be upfront with the broker/lender about your ACTUAL address history. This is not where you ‘tell everyone where you live’ or ‘where you have your post sent to’, it’s your actual occupation addresses. Even if it’s complicated it’s far better to unravel it at the beginning. When lenders find undeclared addresses or worse credit at undeclared addresses it can often lead to a straight decline even if it was a genuine oversight.
As a general rule do fill in ALL parts of your application form or fact find; any missing items will cause delays and all lenders require different information, one might want your NI Number and another might not but if the broker doesn’t have it they can’t proceed with your application.