Buying a house can be an exciting yet stressful experience, especially when it comes to securing a mortgage. Occasionally it is necessary to engage the services of a specialist mortgage lender, which may result in a longer processing time compared to high street banks. In this article, we will provide some context behind specialist mortgage lenders and explain why their application process may take longer.
What is a Specialist Mortgage Lender?
A specialist mortgage lender is a financial institution that focuses on providing mortgages to individuals who may not meet the criteria of traditional high street banks. These lenders often cater to borrowers with unique circumstances, such as self-employed individuals, those with adverse credit history, or individuals looking to finance non-standard properties.
Unlike high-street banks, specialist mortgage lenders assess each application on a case-by-case basis. This means that they take a more personalised approach to evaluate the borrower’s financial situation and determine their eligibility for a mortgage. While this can be beneficial for individuals who don’t fit the standard lending criteria, it can also result in a longer processing time.
Factors Affecting Specialist Lender Processing Times
Several factors can contribute to the longer processing time when dealing with a specialist mortgage lender:
Thorough Assessment
Specialist mortgage lenders conduct a more detailed assessment of the borrower’s financial circumstances. They may require additional documentation or information to fully understand the borrower’s income, credit history, and overall financial stability. This thorough assessment ensures that the lender can make an informed decision based on the borrower’s unique situation.
Specialist Property Valuations
In some cases, specialist mortgage lenders may require more extensive property valuations. This is particularly true for non-standard properties, such as those with unique features or properties in need of renovation. The lender wants to ensure that the property’s value aligns with the mortgage amount being requested. These specialised valuations may take longer to arrange and complete.
Third-Party Involvement
Similar to any mortgage application, there are various third parties involved in the process. These may include solicitors, surveyors, and other professionals who play a crucial role in completing the transaction. The availability and workload of these third parties can impact the overall processing time. For example, if the surveyor has a busy schedule, it may take longer to arrange a property valuation.
Managing Expectations
It’s essential to manage your expectations when dealing with a specialist mortgage lender. While some high street banks may offer quicker processing times, specialist lenders prioritise a more personalised approach to ensure they make informed lending decisions. This can result in a longer processing time, but it’s important to remember that it’s for the benefit of both the lender and the borrower.
Communication is key during this process. Stay in touch with your mortgage advisor to understand the progress and any potential delays. A reputable mortgage advisor can provide guidance and support throughout the application process, ensuring all necessary documents are submitted and following up with the lender on your behalf.
When dealing with a specialist mortgage lender, it’s important to understand that their application process may take longer compared to high street banks. The thorough assessment, specialised property valuations, and involvement of third parties can contribute to the extended processing time. However, by managing expectations and maintaining open communication with your mortgage advisor, you can navigate the process more smoothly.
If you have any further questions or concerns, it’s always best to reach out to your mortgage advisor for specific information regarding their lender’s processes and timelines.
Ready to Discuss Your Mortgage Options?
If you’re considering purchasing a property or have any questions about the mortgage application process, our team at Hudson Rose is here to help. As experienced mortgage brokers, we can provide expert advice and guide you through the entire process. Contact us today on 0330 122 9920 or email us at hello@hudson-rose.co.uk to schedule a consultation. We look forward to assisting you with your mortgage needs!
More helpful blogs from the Hudson Rose team:
Barclays offers sub-5% mortgage deal: what you need to know
Everything you need to know about conveyancing
Want to get on top of your finances? Start with a budget planner
