Coventry estate agents analyzed the financial advice they offered purchasers of property, considering recent changes in the process of mortgage application. The lenders have become more cautious about loaning mortgages.bahria enclave islamabad apartments This means that they are more hesitant to ask questions, conduct longer interviews and probe deeper into the finances.
What is the reason for an uptick in mortgage application?
The financial sector came under to extensive scrutiny after a turbulent period in the economy that saw banks being exposed to "bad debt". The mortgage loans made by property buyers available for sale in Coventry as well as the rest of the UK came under the microscope and questions were raised regarding lenders' attitude towards applicants and the rate at which borrowers were defaulting on loans. The Financial Conduct Authority's Mortgage Market Review identified the key problems and set out an alternative approach to lending to avoid this type of crisis in the future.
Prepare to declare the total amount of expenses
House and flat buyers available for sale in Coventry must reveal their financials like never before. Mortgage lenders won't just demand the proof of income or the proof of a deposit, they will they will also look at all expenses including large loans and utility bills, to smaller expenses such as childcare and gym memberships, as well as regular spending like restaurant bills. The lenders want to look at all the details to determine whether a borrower can afford the mortgage repayments.
Examining affordability today and in the future
It is an excellent time to buy property to sell in Coventry with a mortgage because interest rates are low, the Bank of England is constantly looking at the housing market and numerous speculators anticipate an interest rate rise in the year 2015. Despite a belief that rates will increase slow, lenders will use a 'worst case scenario' when it comes to borrowers and ask for proof that they can afford to pay mortgage payments should interest rates rise to 7%. This is known as the "stress test" and places their finances under strain to determine if they can pay their mortgage payments during difficult times. They may also ask borrowers about their plans for the future and whether they are planning to start or expand family members or acquire an investment property.
The effort of preparation is a great investment
Coventry estate agents are advising property buyers to prepare well prior to their mortgage application - regardless of whether an interview will be with the lender direct or an independent financial advisor. The borrower should have at minimum six months of bank statements and pay slips (or three years worth of SA302 forms for self-employed customers). It is important to list the regular expenses prior to an interview, as well as obtaining in writing any scheduled increases in pay and bonuses that are promised. Interviews can take up to three hours,For more so candidates must allow plenty of time to complete the interview.