The phone ringing is normally a good sign… except when that call is to tell you that your client's case has been declined.
Declines are a frustrating inevitability in the world of mortgage brokering. While it may seem like the end of the road, this simply may not be the case.
Below we will go through the 5 most common misconceptions about declines and what you as a broker can do about it!
Myth #1 They’re caused by an unmortgageable client
In an ideal word, all clients would have squeaky clean financial records, perfect accounts and bank statements; and it would be incredibly easy to fit them to a simple product with a great interest rate. But the world doesn’t just come in black and white, and your client may have a little grey in the background.
There is no such thing as a bad client, just the wrong product that doesn’t cater to their needs. Crystal Specialist Finance’s product panel can help those with adverse, first-time buyer or landlords as well as those without any income.
Myth #2 Your case was declined for no good reason
As banks may restrict their lending during times of uncertainty (case and point: Brexit), lenders become more and more choosy about who they’ll lend funds too. With this in mind, the lenders could be scrutinising your client’s credit reports, business accounts and other application details more closely than usual.
Remember, lenders want to lend but have to fit their models and profiles.
Myth #3 Cases can’t be declined after an Agreement In Principle
It’s sad but true - even when you feel like the case is safely in the bag, financial institutions can still decide not to release funds. When a client is looking to complete quickly, a “no” at this stage of the game could have serious consequences.
Don’t let a late decline ruin your client’s plans! No matter how late in the game you get the news there is still a possibility of a quick completion. Just this week we’ve completed a residential mortgage case that was previously declined… in just two weeks!
Myth #4 A declined case has wasted your time
We know a lot of work goes into completing a case. From the initial meeting to the fact find, not forgetting the sourcing of products and advice you’ll be providing, an application can take up a lot of time if you’re doing it right.
Even though your original lending choice hasn’t accepted your offer, the information gleaned will only make it easier for packagers like Crystal Specialist Finance. Simply provide us with everything you’ve collected and we’ll be able to work with that to continue the process!
Myth #5 A decline means no!
Getting a mortgage decline at any stage of an application doesn’t mean the end of the road for your client. As each lender has their own set of criteria to lend against, your client's case won’t be for everyone. Reaching out to a packager could be the solution.
At Crystal Specialist Finance, we have a lending panel that spans the market. From the High Street to Challenger banks, we look into every possible option to fund your deals. Throw into that our range of exclusive and semi-exclusive products; we'll be sure to present some attractive options.