Check if a Property's Financing Might Be an Issue: New Rightmove Tool Assists Buyers in Predicting Bank Lending Decisions
Title: A Groundbreaking Digital Tool: Property Lending Check on Rightmove
Are you in the market for a new home, only to find out after the process begins that the property isn't mortgageable? Been there, done that! But not anymore! Rightmove, one of the UK's biggest property platforms, and Nationwide, a leading mortgage lender, have teamed up to bring you a new innovative feature that will let you know if a property is likely to meet the mortgage requirements before you even set foot in it. Say hello to the digital 'property lending check'!
This fantastic new tool is designed to give home-hunters confidence that they won't end up with a dream home they can't finance. Instead of assessing your qualifications, it identifies any property-related problems that lenders might find significant. For instance, a minimum size requirement, excluded new-build properties and high-rise apartments, and concerns about leaseholds, among other issues.
Lenders usually screen homes for these types of issues to ensure they can sell the property easily if the borrower defaults and the property goes back to the bank. This tool reduces the stress and eliminates unexpected surprises during the purchasing process, offering a smoother and more efficient home-buying journey.
Know the Catch
Just as a lender can refuse to grant a mortgage to an individual, they might also turn down lending for a specific property. This digital property lending check tool aims to help homebuyers avoid properties with these risks.
Potential Concerns for Homebuyers
- Homes on Floodplains: Janet Baxter from the Flood Protection Association warns that homes situated on floodplains can be difficult to insure or might require costly flood defenses[2].
- Properties with Structural Problems: Homes with significant structural issues might be harder to insure, also impacting the mortgage approval process[2].
- Non-Standard Construction: Homes built with non-standard materials such as concrete or steel can be riskier to lend on, as they might be harder to insure and sell[2].
What's Next?
The first phase of this new property lending check tool has already been rolled out, with further enhancements planned over the coming months. Some mortgage brokers are following the debate about the tool, unsure about how much difference it can make. While Mark Harris, chief executive of mortgage broker SPF Private Clients is somewhat skeptical, Nicholas Mendes from broker John Charcol finds the new tool to be a smart move, as it has the potential to save homebuyers a lot of time and stress, by offering a clearer understanding of a property's mortgage eligibility before even stepping into the property[1].
References
[1] Rightmove's groundbreaking digital property lending check tool [Link to article]
[2] Common mortgage red flags and hidden pitfalls to watch out for as a homebuyer [Link to article]
[3] Tips for a smooth mortgage application process [Link to article]
[4] Compare the best mortgage deals on the market [Link to tool or article]
[5] What is the mortgage process in the UK? [Link to article]
- The digital property lending check tool on Rightmove could potentially help homebuyers avoid properties with issues that might make them difficult to insure, such as homes on floodplains or those with significant structural problems.
- The tool might also alert homebuyers to properties built with non-standard materials, which could be riskier to lend on and insure.
- By identifying potential mortgage red flags early, this innovative feature could streamline the home-buying process, reducing stress and unexpected surprises.
- As the tool continues to develop, it could significantly impact the real-estate industry, especially for property investors and those in the finance sector dealing with mortgages.
