For the attention of all of our clients who currently have a case being processes or are due to have one processed, this is a long one but please please take a few minutes to read it. It will give you an insight into why it’s taking so long to get your mortgage applications through at the moment and why lenders are asking for what may feel like is excessive information.
How Are Lenders Assessing Cases?
Lenders are assessing cases VERY differently to anything we have EVER known. This has mostly impacted self-employed clients. They are asking a lot of questions about how your business and income may have been impacted by COVID and if it hasn’t been impacted then they will ask us why. The request for business bank statements is quite normal now. Some business’s will have closed for nearly 4 months during this tax year and there will be very few business’s which COVID hasn’t had a negative impact on.
The lenders have a duty of care to YOU to make sure that they don’t give you a mortgage which you cannot afford to continue to pay if there are further negative impacts off the back of COVID or you cannot sustain the level of income you earned last year. You may think these questions and requests are unreasonable and we very often agree with you – thankfully we submit a lot of applications for self-employed clients and this is one of Kate’s specialities and we will do a lot of research before deciding which if the best lender to deal with your case.
What Are The Timescales?
We can no longer get you a mortgage offer is 4/5 days. In the photo is all of the lenders current service levels. Application to offer for some of them ranges from 20-30 days. We may submit your application and not hear anything from the lender for 2-3 weeks. They may then ask for additional information and that might take a further 10 working days to look at!! (This is quite an extreme scenario). This is completely out of our control.
Can You Escalate My Case?
We aren’t able to escalate cases with any lenders unless they have gone beyond their advertised time frames. We are as frustrated as you. We are doing triple the amount of work on many of our cases to get them to offer – so please please try not to take your frustrations on our team because they are all working very hard at the moment often in their own time.
Please also manage the expectation of your estate agent or builder who may be chasing us within a couple of weeks of you agreeing to purchase to find out why you haven’t got a mortgage offer – and this is why! The lenders currently have reduced work forces, a lot of their work forces are still working from home which makes communication between departments slower and harder, yet they are receiving record number of applications. They are putting cases through more complex and stringent checks, often specialist teams and underwriters are checking cases before they will approve an offer – this increases processing times.
You are in good hands! The team that works for me is the best in the business. They are 100% focused on getting our clients cases to offer and making sure your mortgage completes asap.
Thank you as always for your continued support and understanding at this very challenging time.
Lenders Service Levels
(As of 10th September)
- Santander – Reviewing cases submitted on the 25th August
- Nationwide – 19 days for initial assessment and 11 days to assess further documentation
- Halifax – 8 days for underwriters to assess documents
- Natwest – Self Employed or Complex cases 12 working days / Non-Complex cases from the 4th September are being worked on
- Virgin Money – 5 working days
- The Mortgage Works – 5/6 days for case and document assessment / valuation taking up to 15 working days to be booked and carried out
- Birmingham Midshires – 9 working days for case and document assessment
- Leeds Building Society – 10 working days for case and document assessment
- Accord Mortgages – working on cases from the 4th of Sept
- Metro Bank – 5-7 working days for initial assessment and 3-4 working days to assess additional documents
- Kent Reliance – 5 working days for application assessment and a further 3 working days to assess additional documentation.
- Precise – 1 working day
- HSBC – 10 working days for a non-complex case
- Nottingham Building Society – 10 Working Days to assess cases & documents
- Skipton Building Society – assessing cases submitted on or before 25th August. Additional documents then reviewed in 24 hours.
- Barclays – 4 working days
- TSB – working on documents from the 1st September a further 7 days to assess additional documents
- Clydesdale – 19 days to assess new applications/5 days to assess additional documents
- Paragon – 4-5 working days for case and document assessment
- Coventry – working on cases and documents from the 4th September