In the fast-moving environment in which we all operate nowadays, one of the key deliveries for a lender is its speed.
This is an area that has seen real improvements in recent years, thanks in part to technological advances. But the speed at which an application can be processed is still significantly dependant on the ‘human touch’ when it comes to packaging cases.
Over the last two or three years, NatWest has worked closely with many intermediary firms to improve the percentage of ‘right first time’ applications received.
At the end of 2009, only 35% of applications were correctly packaged. But, by the end of the first half of this year that figure stood at 67%, which is a fantastic achievement, and one we will continue to build on.
To help that figure edge even higher the NatWest mortgage processing team have came up with this checklist of what to do to avoid the most common issues that result in an incomplete application:
1) Evidence of a client’s income
This must match what is stated on the application form. The net income can be worked out using the income convertor tool on a lender’s website.
2) All financial commitments need to be declared on the application form
Even credit commitments that a client intends to repay need to be declared. You can advise if a commitment is to be repaid before the mortgage completes on the online application.
3) Bank statements need to show all financial commitments
They must be up-to-date and match the details given on the application form. An application needs to match the credit commitments shown on bureau data e.g. Experian, Equifax.
Bank statements need to evidence all the financial commitments declared on the application form, so if a client has more than one bank account and pays commitments from both, we’ll need to have copies of statements from both accounts.
4) A repayment vehicle needs to be specified.
This needs to be done on the application form for interest-only cases. The online application prompts you to advise us of the repayment vehicle.
5) Purpose of additional borrowing
This needs to be specified along with the source of deposit. If a client’s deposit is being financed from more than one source e.g. savings and gift from parents, this will need to be documented in the notes section of the application.
6) Documents used to evidence ID need to be legible and correctly certified.
Care needs to be taken when photocopying documents to ensure that they are legible and correctly certified with the words ‘True copy of the original’, showing your firm’s name, your full name in block capitals, your signature and the date.
Documents such as passports and driving licences don’t copy well, so it’s worth considering sending a document that does copy well such as a letter from HMRC.
A full list of acceptable ID documents can be found on our website in the packaging section. But don’t forget that our website and the MTE also use electronic verification, as part of the online decision, so in many cases you won’t need to submit copies of ID documentation.
It really does make a difference if applications are fully packaged as lenders can immediately progress them. Avoiding some of the more common causes of delay mentioned above will mean that you won’t be asked to submit further information, freeing you up to spend more time with your clients.
