Anna Mikhailova's story: Don’t bank on landing a super-cheap mortgage
Nearly four in ten people buying a home pay in cash, according to figures published last week — but what of those who still need a loan?
What chance do I have of getting a bargain loan?
Only perfect applicants who tick every box will qualify for the best-buy rates — and the number of boxes to tick has risen substantially as lenders tighten their criteria.
Aaron Strutt of the mortgage broker Trinity Financial told The Sunday Times: “It is more complicated than ever to secure a mortgage. Borrowers initially have to work out the best lender and rate to take, depending on the size of their deposit. Then they need to assess their affordability, the way they are employed, the type of property they are buying — and a host of other things.”
Who decides if I get an offer?
Initially, a computer assesses your application. If it says no to any part of the checklist — from missing a bill payment to not being on the electoral roll — you could be transferred to a manual underwriter.
Human error can cost you dear. “An incorrect address history on the application, or wrong information on their credit report, causes applications to be declined,” said Mr Strutt.