Industry Insight Episode 4
In case you missed our earlier episodes, you can get up to sp
eed with:
- “Industry Insight | Multigenerational Living Is On an Extraordinary Rise | 2020“
- “Industry Insight Episode 2 | Challenges in the Mortgage Industry: An Amazing Read“
- “Industry Insight Episode 3 | Uncovering the Potential of Annexes as Holiday Lets“
COVID-19 has affected life in the UK more than any event since World War Two. It has impacted our health and well-being, restricted free movement, and limited opportunities to see loved ones. Financial stability, job security, and daily living routines have also been disrupted.
Despite these setbacks, many believe there is reason for optimism. New, positive situations are expected to emerge. For instance, the UK mortgage market has significantly changed during the pandemic, which may provide opportunities for first-time buyers.
Mortgage lenders have adapted to the new environment. They offer more flexible terms to accommodate borrowers’ changing financial situations. Interest rates have reached historic lows, making mortgages more affordable for many people.
Industry Insight Episode 4 | Aspirational Thinking
Many of our customers are planning changes after months of confinement. They see more time living like this ahead.
They have shared how positive thinking about their living situations has uplifted them during these bleak times.
Choosing to live somewhere new or upgrading their current property is common now. This trend has led to many new mortgage applications at Harpenden Building Society.
Many are planning to buy their ‘dream home,’ which is encouraging to hear.
Industry Insight Episode 4 | Opportunities for brokers
Buying Your Dream Property
Everyone has a unique dream of buying property. As brokers or specialist lenders, we help facilitate these aspirations. Customers’ sharing of property ambitions inspires us, marking the beginning of their journey toward achievement.
The possibilities are endless, whether it’s a first-time purchase, a self-build project, modifying an existing property, or buying a holiday home. Life’s too short to put dreams on hold, and I admire those who seize the opportunity.
Understanding Unique Situations
Recently, we had an inspiring mortgage application. A couple, one with health issues, wanted to maximise life before their condition worsened. Their current lender wouldn’t offer a longer-term or interest-only structure. As a result, capital repayments inhibited the lifestyle they sought for the next year.
The broker faced the challenge of finding a lender who understood the client’s situation. Additionally, a valuer who could appreciate their property was essential. Harpenden Building Society provided both. After examining the applicants’ financials in detail, we found an alternative solution.
Finding the Right Mortgage Solution
We evaluated the couple’s complex income to find an option for mortgage approval. Our approach ensured their lifestyle goals were met.
The process was detailed, requiring a thorough understanding of their specific needs. We pride ourselves on offering tailored solutions.
First, we analysed all income sources. Then, we assessed their financial stability. This helped us create a customised mortgage plan.
Next, we reviewed potential lenders. We selected those who could accommodate the couple’s income structure, which increased the chances of approval.
Throughout the process, we communicated regularly with the couple. We provided updates and gathered the necessary documents promptly.
Furthermore, we ensured all paperwork was accurate. This minimised delays and avoided complications.
Industry Insight Episode 4 | Financial profiles are changing
Customers’ income sources are often not straightforward today. Increasingly, brokers and their clients come to us with complex financial profiles.
Mortgage applications assessed by mainstream lenders can struggle with this complexity. Algorithms can reject non-standard profiles early in the process.
However, at Harpenden, we manually underwrite each mortgage application. This detailed assessment allows us to evaluate risks thoroughly.
Our goal is to approve applications whenever possible. In-depth scrutiny means that complex applications can often proceed successfully.
This approach benefits many customers with varied income streams. Therefore, we strive to accommodate diverse financial situations.
Industry Insight Episode 4 | Achieve the dream
‘Living the dream’ is an ethos I predict will be adopted increasingly as house buyers are gradually freed from COVID-19 restrictions. In more complex lending situations, choosing an experienced lender who will manually assess your customers’ mortgage applications will help more people achieve their dreams.
Further details of Harpenden Building Society’s specialist mortgages can be found at harpendenbs.co.uk/intermediaries
Credit: Jean Errington, Business Development Manager, Harpenden Building Society | Industry Insight Episode 4
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