Five things to avoid in loan applications

26 July 2010

In the past five years customer expectations with regard to speed and quality of service have rocketed, largely due to the growth in online shopping and next-day deliveries.

But these expectations are not confined to the retail sector - they are equally high in the business environment.

When it comes to mortgages a key indicator of a lender’s performance is the speed and accuracy with which it can process applications.
Lenders have made substantial strides in this area by investing in technology but there are still more ways we can all ensure that applications progress without delay.

One of the key elements of the application process is packaging - if applications aren’t accompanied by relevant documents or lack vital information they take longer to be processed.

I recently spoke to our processing team to find out the most common problems with applications and the top five are:

• Information on the Know Your Customer declaration not matching details on the application form.
• Bank statements not up-to-date and not showing salary at the level stated on the application.
• Applicant’s long-term financial commitments not declared.
• Planned repayment vehicle for the mortgage not specified.
• Purpose of additional borrowing and source of deposit not stated.

If you avoid these pitfalls you won’t be asked to submit further information and you’ll also get your proc fees faster.

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