I recently had a call from a customer who wanted a mortgage offer to complete a purchase at the end of June. He was calling me on June 2nd and I was on holiday from 13th-20th of June. That on the face of it was a request that held a viper’s nest of potential problems.
Normally my administrator would help a case like this over the line but she was not available.
I’m going to take you through how I was able to get this customer the mortgage offer they needed in such a short period of time. I hasten to add that this shouldn’t become best practise!
The clients and myself arranged to meet that evening and I asked my customer and his wife to bring all the documents needed to process an application; ID, payslips, bank statements, house details, Solicitor details, proof of deposit and so on. We met Friday evening and by 10pm I had the case shaped and ready to go.
A good broker will want to be very sure of where that case is going, which lenders have the capacity to turn it round quickly and to make sure they have every document imaginable that a lender might call for.
I knew that I had to have it practically at offer stage by the 12th June – fixing problems the following week from the South of France was not something I wanted to do.
Many lenders will also take 2 or 3 days to look at a case. If they then decide they want more papers, it’s another 3 days before your reply is picked up. In this case I prepared the application over the weekend to send it to the lender on the 5th June. Getting it wrong would have left me trying to sort it whilst packing my holiday suitcase. Not ideal.
Initially I need to carry out a credit search on all customers which even with the most credit aware and organised clients this task can just sometimes throw up a “Fail” or “Can We look Further into This?” type answer. It might not be the customers have bad credit, but something somewhere in all their data may not be accurate or agrees with what the broker has been told. Most things can be sorted or rectified but time was not my friend on this case.
But I got my “Pass” on this case on the 5th June and then loaded the rest of the details. Another “Accept” and I made myself a well-earned coffee and rummaged through the chocolate biscuit drawer.
Now, with many lenders they will review the application in a couple of days and tell you what they need before they go to valuation. My knowledge allowed me to use a lender in this circumstance that takes a modern approach and tells me immediately what to send in the way of status. Vital when needing to get a quick mortgage offer. I then call and get everything approved on the spot.
You know the feeling, after a tough exam sometimes you welcome hearing a month later, you don’t want to know now, but in this case, I needed to know at once. So it was back to the biscuit tin when the helpful administrator said “All Good, Mark, I will instruct the valuer now!“.
The Valuation was booked for the 12th June and I drove to the Airport with an email on my phone saying an offer had been issued. That pre-flight drink tasted good, believe me.
When I returned home my client was delighted, but he had news for me. The vendor and estate agent had perhaps been a little economical with the truth over a feature in the sale and my client’s solicitor was not impressed.
A £4,000 reduction in price was sought and haggled about for 3 days. On the 23rd June, my client called and asked for a new mortgage offer to reflect the new purchase price. I inwardly winced but I knew my lender criteria well enough to realise things should be fine.
So, one phone call later, with a 10 minute nervous wait, but yet again the lender was spot on; immediately emailing a new offer to me and promising to do the same for the solicitor. Again, not all lenders could have done that.
If this happened as a matter of course I would not be telling the story. Sadly, it does not. I can hear you saying, “that’s all very well but what about the rate or deal, was it competitive?”. Of course! We have to get our customers top rates and this was a deal that would stand up to any scrutiny.
And why was it asked for? Well most transactions are chain linked; solicitor, customer and lender dependant. At the top of the chain in this case was a “New Home” sale, where the selling company insisted this deal was in their books by June 30 for their year-end.
Whatever the rights and wrongs of that request it certainly got the job done focused a lot of minds!
Moral of story? Well, not all lenders are the same, but with an organised customer and a committed organised broker, nearly (and I stress nearly) anything is possible!