Julie Gaskin is corporate relations manager at GMAC-RFC
“The priority here is clearly to deliver a mortgage offer that is ‘certain’ and not going to be withdrawn as they have just experienced. Using GMAC-RFC’s online offer system they can receive a legally binding offer in a maximum of four days or even in 20 minutes if the property is acceptable for an automated valuation model (AVM). GMAC is happy to accept Sarah’s income even though she changed jobs in the last week, as long as her employment history has been continuous.
We will also accept 100 per cent of Michael’s bonus and overtime as long as it is regular. This would mean we could offer a mainstream rate rather than having to apply for a self-certification which will keep their payments down.
Finally, GMAC will not deduct the loan from their salary but uses an affordability calculation. Subject to their search and score, and the solicitor doing the conveyancing on time, then GMAC can help them buy their new home.”
Katie Tucker is technical specialist at John Charcol
“At 75 per cent loan-to-value this is relatively low risk, and if half of Michael’s regular bonus income is taken into account, it’s only 3.7 times joint income. This is assuming repayments of £100 per month on the unsecured loan and that Sarah’s employment is in the same industry. Many lenders would look at this.
As completion ‘in no time’ is needed, a lender with AVM springs to mind, or a small lender with whom the intermediary has direct access for speedy decisions and possibly reusing the survey from the last application.
The reason for the original decline must be accounted for, but Saffron or Clydesdale might be able to oblige if the adviser can demonstrate the case’s merits. edeus is ideal for the AVM route, but you will pay in the rate. Its 75 per cent products with no early repayment charges will allow a remortgage after completion, but the arrangement fee of 1 per cent may negate the benefits.”
David Hollingworth is head of communications at London & Country
“Michael and Sarah seem to have been left well and truly in the lurch by the lender processing their initial application. The first question to be addressed is why the application has been declined. Overcoming the lender’s objection would be the first route to explore in an effort to keep things on track without having to start from scratch.
In addition, it is important to assess the problem with the declined application in order to understand whether there may be an impact on any new application. For example, if declined due to an undisclosed problem with credit history, it could mean looking at an entirely different product type. If their income doesn’t stack up, then it could lead to questioning whether they should take on the mortgage at all.
Otherwise, speed is key and so lenders, such as edeus and GMAC that can offer instant automated offers, are likely to be their only hope in meeting the deadline.”
Answer ten questions to win Amazon vouchers!
Get the daily news delivered to your inbox
Find the latest industry jobs
