Selecting the correct estate agent to act on the sale of a new development is essential, but how many developers consider who will be guiding potential purchasers on their mortgage options? Your agent may have their own specialist new build team, others have in-house general advisers or partner with an outside brokerage. Data compiled from Google search trends by comparethemarket.com between October 2019 and September 2020 shows that the length of an application is the biggest mortgage related concern of consumers. Prospective buyers speaking to the right financial adviser, can speed up the process for all parties and ensure that units are sold in a timely manner.
Even with some of the larger agents’ developers, can sometimes insist on the use of a specific mortgage brokerage. Here are some of the factors that you should consider.
With a new build, the mortgage adviser should gather as much information as early as possible in the process to pre-qualify the client. The buyer, agent and developer should have the utmost confidence, prior to payment of the reservation fee and ideally before a viewing, that they will be able to raise the required funds.
Those purchasing through Help to Buy will have two applications to make. One for the mortgage and another for the equity loan, each with its own processes and differing criteria. An adviser that can act and guide them through both parts will make the process smoother and ensure that there are no unnecessary delays or disappointments.
Individual providers will often lend on around 20% of a block and lending options can reduce further depending on factors such as height of the block, commercial units on the ground floor, location and even the amount of the ground rent and service charge. Using a broker that uses the whole of the market is vital where the major banks have reached their exposure limit.
People do not always fit neatly into the boxes that lenders require and with criteria becoming tougher during the pandemic it is important to have a broker that can think outside the box. This is particularly true regarding the self-employed and could make the difference in that person being able to raise the amount that they need. Widening the pool of potential buyers.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Some forms of Commercial Lending and Buy to Let advice are not regulated by the Financial Conduct Authority.
Lee Langley is the Principal Mortgage and Protection Adviser at OnPoint Mortgages. OnPoint Mortgages a trading style of L&D Mortgages Limited is an appointed representative of The On-Line Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Registered address: 25 Homefield Road, Bushey, Hertfordshire, WD23 3AP