Open banking seems to be the buzz phrase of the moment as the world of technology impacts the way our spending habits are analysed. In short, you will soon be able to give permission to your Bank or Building Society, to release all details of your bank account transactions to any regulated business. This can speed up the process of decision making when applying for loans, mortgages, etc, in comparison to just supplying your last three months paper bank statements, which is the current normal way of disclosing. So no longer will your bank be the only one to know how much you spend on your weekly shop, utility bills and broadband! Or of course, when you move into, and how often you use, your overdraft! Permission can be withdrawn at any time. Nine institutions were given a deadline of 13th January to be ready for launch, and five have been granted an additional six weeks to be ready. Watch this space!
There have been a number of new products launches for the new year as lenders seek to gain a good start to 2018. Many lenders have lowered rates and some have reviewed their criteria in order to bring in more business, possibly allowing customers that wouldn’t have been approved towards to the end of 2017. Always review all possible options before giving up.
Finally, the importance of mortgage advice has never been greater. It is an interesting fact that, according to a number of industry sources, over 70% of all mortgages are written through professional advisers. There are probably many reasons for this including long delays we are advised are happening with some lenders both in interview capacity and processing times.
The majority of professional mortgage advisers review the whole market for you and can identify the best lending options and then deal directly with the lenders central processing units, speeding up the process from application to offer. That said, even in this area we know of at least one lender that is over ten days behind on post or electronic updates currently! A good adviser will listen to your specific needs and timescales and ensure that they line you up with a lender who will match both. They should also contact you again when your product is up for renewal and guide you through that process, building a long-term relationship with you.