A two-week wait for mortgage appointment?

Why wait 14 days?

Has your bank told you that you cannot see their mortgage adviser within the next two or even three weeks?

This scenario has become increasingly common since the mortgage market review on 26 April.

Perhaps the biggest concern for mortgage applicants in the new environment is that a two-week wait to obtain an appointment followed by a two-hour meeting, does not guarantee you a mortgage. If you do not meet the lender’s underwriting criteria and they decline your application, you need to start again from the beginning with the new lender. By the time you’ve done that have probably lost the property you are looking to buy.

Why your Bank is treating you so badly?

If you are applying direct to the lender for your mortgage or re-mortgage, the process has changed considerably since last month. One of the major elements of the mortgage market review is the requirement for applicants to receive ‘advice’ from a regulated mortgage adviser.

Prior to the changes in rules your Bank simply provided information on their mortgage products, and gathered supporting data for their underwriters. This allowed the Bank to leave the process of dealing with mortgage applicants to unqualified, unregulated bank staff with minimal training.

In the current environment, not only does the bank have to ensure that the applicant talks to a fully qualified and regulated ‘mortgage adviser’, but that adviser also has to follow a thorough process of gathering information, providing information, and discussing and agreeing options.

This means less suitable staff available, more time per customer, and therefore these ridiculous delays in obtaining assistance.

Of course, mortgage lenders are big businesses and will therefore always be seeking ways to retain their market share. One option they have under the law is to provide an online application process where no advice is given and the applicant merely goes through a tick box exercise on the Internet. This is fine in theory, but the moment there is any interaction with the applicant the lender has to switch to an advised process and we are back to square one. What is considered interaction? This can be a simple query on the background details of the product or the application process. In reality unless the applicant is prepared to run the entire application process online ticking all the ‘yes’ boxes and not asking any questions, the ‘advised’ (two week delay) application process will come into play at some point.

The solution – use a mortgage broker

If you do not want to wait two weeks or more to discuss your mortgage application, you do of course have the option to use a Mortgage Broker.

The key difference in the way a Mortgage Broker works is that the Broker has to ensure that they provide a good quality service to their clients – or they will swiftly be out of business.

When you engage a Mortgage Broker, your broker can identify at outset which lenders are likely to accept your case and therefore you will not be wasting time approaching unsuitable sources of lending.

Using an Independent Mortgage Broker means:

  • Access to dozens of lenders and hundreds of products
  • Expert advice given in a manner to suit your requirements

This means:

  • No delays
  • More choice
  • Faster service
  • Less hassle

Under the new post Mortgage Market Review rules, using a Mortgage Broker is your best option

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