33% of Mortgage Applications get declined
Mortgage Application Statistics | Mortgage Broker in Coventry
Mortgage research | Mortgage Advice in Coventry
Recent research has uncovered that 33% of proposed mortgage applications are not accepted by Lenders because of them not passing certain criteria.
Mortgage Statistics: Advantages of using a Mortgage Broker in Coventry
Statistics found by Experian highlight the advantages of using a Mortgage Broker which increases your chances of getting your mortgage application approved the first time. We often have customers who approach us who have found themselves with their mortgage application declined and state how they wish they had come to someone like us beforehand.
The research also uncovered that only 3.5% who are on the hunt for a mortgage are eligible for every deal that is on the market. This is important to bear in mind as a customer – just because you have seen a cheap deal that is available, it doesn’t mean you’re eligible for it.
Deeper into the study showed 22% of applicants start the mortgage process using price comparison websites. Although there is nothing wrong with this, these sites will not match you with the Lenders criteria specifics. It is also important to take into account that it can be weeks down the line and Lenders can still come back to you with the application declined – this can cost you both your time and the house you were aiming for.
On the flipside, 27% were eligible for a mortgage only for a reduced amount when they meet a Lender’s affordability requirements. This is also a common issue. Lenders often say that a person is able to borrow a certain amount but further into the process, they reduce the mortgage available. If you use a Mortgage Broker, the fee may add to your expenses but it saves the aggravation and ensures a more smooth Mortgage process, especially if you’re a First Time Buyer, where there may be added pressure from not knowing what to expect.