Here are some handy tips, both practical and technical, for financial advisers and brokers:
1. When discussing a case ask yourself or the introducer “is there anything unusual about the application that we need to know about” Examples would be – how old are the applicants, what’s the type of property, what does the credit profile look like?
2. There might be some technical complications to overcome if the property is not straightforward, so do tell us in detail if it is, for example an ex-local authority flat, flat above the 4th storey, how long is the lease if it isn’t freehold or a share of freehold.
3. Age is an issue for some lenders, but we are happy to take applicants aged up to 70 who are still earning and beyond, so long as the applicant’s pension income is sufficient. We’ll need evidence of income now and in retirement in order to ensure the mortgage remains affordable.
4. If the applicants will be past retirement age when the mortgage term ends, don’t forget they need to complete a Mortgage in Retirement form.
5. If it’s a joint application how will the mortgage remain affordable should one applicant pre-decease the other? Is there cover in place such as life insurance?
6. It’s surprising how many forms come back incomplete and delay processing. Please ensure the application form is fully completed as neatly as possible and make sure all required paperwork is submitted. If the answer is NO, put No; if it doesn’t apply then put N/A. Make sure the fees, both admin and processing are included, as this is another common cause of delay.
7. We always carry out a credit search, so make sure all loans, credit cards as well as unsecured bank loans are marked on any supporting bank statements.
8. Make sure there is a repayment strategy in place and a completed Interest Only Supplementary form for interest-only applications.
9. With our new Family Mortgage we still need to stress that the applicant has to be able to afford mortgage repayments, regardless of the family member’s security/savings that are being offered. It is not a Guarantor Mortgage
10. And finally, please use this checklist..
Keith Barber is associate director of business development, Family Building Society