Great products, but processing delays across the market

Supermarket giant Tesco has launched it's mortgage proposition into the intermediary sector this week.  With some very attractive tracker rates, two and five year fixed rates, I can see Tesco Bank being a popular choice in the coming months and years.  And not one mention of a club card! 

Coventry Building Society has launched a competitive ten year fixed rate mortgage.  Available to those borrowing up to 65% of the property value, rates start from 2.99% (3.6% APR) with a £999 lender completion fee, free valuation and free legal costs on remortgages.  The mortgage is also available as an offset mortgage (which allows you to offset your savings against the mortgage interest amount, terms apply) at a slightly higher 3.19% fixed rate (3.8% APR).  The long term deals are great if you know your plans for the foreseeable future.  Speak to an adviser to find out more.

Despite some of these amazing products being launched and lenders looking to attract new business, we are seeing general processing delays across the market.  Some lenders are not taking appointments for two to three weeks, some are up to ten working days behind on processing, and we have experienced recent telephone calls taking over an hour to receive any kind of response!  These are just on the broker side so heaven knows how customers are faring!

Therefore, to make the process as smooth as possible, make sure you have all details to hand at the outset.  With all new mortgages, a budget planner will be required.  Make sure you know and can advise exactly how much you are spending on your lifestyle.  Especially make sure you know your monthly costs on food, household expenses, travel, pension and saving contributions and other likely costs such as hobbies, going to the gym, lottery direct debits and more.  Every lender will review your ability to afford your new mortgage over coming years so all direct debits and most entries on your bank statements or credit report will need to be advised.  This is so the lender can make a viable stress test on future rate rises and ensure that you will still be able to afford your mortgage at that time.  Yes, maybe there is a little guess work, but do make sure you disclose all monthly expenditure as the lender will normally want to review your bank statements and will see it all anyway!