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Nationwide’s top ten tips to a quick offer

by: Paul Howard
  • 19/09/2011
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Nationwide’s top ten tips to a quick offer
Even in this post-crunch world there is still a plethora of products for brokers to choose from as lenders compete to fill their lending targets.

However, whilst price tends to be the most important consideration on product selection, what can really make a difference is the speed and efficiency with which intermediaries are able to get the deal offered and completed.

In recent years, online services have evolved and developed to add greater choice and speed in the way that intermediaries deliver mortgages for their clients.

For any lender wanting to do serious lending volume, it is now almost a condition of market entry to be able to offer an effective online trading platform to the intermediary they wish to serve.

Countless millions have been spent building these systems and they incorporate the latest cutting edge technology. Our own system, NFI Online, speaks to no less than 42 other systems, both internal and external to Nationwide.

While the lenders are obliged to make their systems as efficient as possible, equally the user, i.e. the broker, can still influence the outcome enormously depending on the quality of information they enter into it.

For that reason, we are sharing our top ten tips on how to avoid unnecessary delays when applying for mortgages through Nationwide for Intermediaries ensuring that clients get the speedy response they have come to expect.

These tips come directly from the underwriters and are based on our current experience of the most common reasons for delays on individual applications:

1. Be accurate and comprehensive with the information provided. This is particularly important with online systems to avoid re-processing delays and potential credit scoring difficulties.

2. Income verification and affordability: lenders will verify declared incomes against payslips and P60. It makes sense therefore, to input income figures based on the basic salary on the payslip. Use the difference between the annual p60 figure and the basic salary to include any additional income such as bonus/overtime/commission – that is what the lender will do.

3. Names and addresses: these are fundamental to obtaining an accurate credit score. Always provide a full address history covering the last three years and include all middle names.

4. Number of dependants: most affordability calculators will factor in family costs, therefore it is essential that all children are disclosed if requested. Do not exclude the number of children in order to enhance the affordable sum – the detail will come out later in the application.

5. Source of deposit: always make sure that the client is clear where the deposit is coming from. If from equity on sale, make sure that this will be enough to cover moving costs or Stamp Duty, as well as the deposit. If from savings, check that the savings are easily available. If the deposit is to be gifted, the lender will want confirmation who is providing the gift and that there are no strings attached.

6. Avoid ‘drip feeding’ information: If the application is not straightforward, then it is best to provide a full and frank disclosure of all the pertinent facts up front.

7. Additional information: sometimes a lender will request more details on a client’s finances. It is often quicker just to ask the client for this, rather than to get into a debate with the lender as to the rationale.

8. Private sales: provide details of the relationship the applicant has with the seller. If there is no relationship with the seller, then how did the applicant come to learn of the property? What is the reason for the sale? Will the purchase be made at full market value?

9. Always make sure all outgoings are disclosed, including child care costs, school fees and maintenance payments

10. If bank statements are requested, try to attach the most current month’s available and select the primary account that shows the salary credits being credited

The importance of intermediary business means that lenders like Nationwide will continue to develop and streamline processes to provide the best service.

For example, Nationwide will introduce enhancements that minimise paperwork even further over the next 12 months.

We believe that Nationwide provides brokers a very good service, with 35% of all new mortgage applications submitted in May via the NFI Online site offered within five working days – and these figures continue to improve.

We want to be a trusted service provider to brokers and are committed to helping them achieve their aims, not only through competitive products but also our service.

Combining this with a better understanding of how to avoid unnecessary delays can help to further enhance the reputation of the intermediary community as a professional, respected and responsive way to seek mortgage advice.

Paul Howard is Nationwide for Intermediaries’ head of corporate accounts

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