A new way of applying for mortgages?

Discussion in 'Loans & Mortgage Brokers' started by balwoges, 11th Jan, 2020.

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  1. balwoges

    balwoges Well-Known Member

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    balwoges, 11th Jan, 2020
    #1
  2. Lindsay_W

    Lindsay_W Well-Known Member

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    No
    Just because the basic data shows you could get a better deal doesn't mean you meet specific lender policy
     
    Lindsay_W, 11th Jan, 2020
    #2
  3. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Some of the lenders in the article are on my panel. Having spoken with them about how they assess loan applications, it's fairly concerning. They're taking an extremely close look at your living expenses and other financial data, much closer than regular lenders.

    How they rationalise the data the collect and how it's assessed on the loan application is very opaque. I can see lenders using this to turn the lending tap on and off as they please, with no real clarity to borrowers. The decision making is being automated with very little human participation. A lot of people might find themselves with applications declined for no reason they can't anticipate or mitigate.

    On the flip side, if you're living expenses are bare bones minimum (and most people's aren't), they have the ability to be very quick and hassle free.

    Realistically I don't think I'd recommend them to an investor, but simple scenarios might be suitable.
     
    Peter_Tersteeg, 11th Jan, 2020
    #3