A first time buyer success story, what can be so difficult about that I hear you say?
This couple were referred over to me from a previous customer. They were a little bit nervous about buying together and the process in general. They had done some initial research themselves but were not confident enough to go through with it on their own.
What we did
It is a good job they did get in touch with us (or any broker really) as there were a couple of things that were problematic.
One of the applicants employment was a Fixed Term Contract. Most lenders have criteria that states if you are on a contract it must have been renewed at least once and have at least 6 months left to run. This did not fit that criteria. From their own research they realised this would be a problem.
The other issue was the applicants address history. They had met at uni and had a couple of addresses over the years. That part was not so much of an issue (although it can affect how your application scores). The bigger issue however was that one of the applicants had moved in with their partner and his parents. They have not transferred anything over to the new address though, it was still all registered at mum and dads. This was a problem they had not picked up on!
We already had a pretty good idea of where this would end up before starting. We did our research as normal and found another potential option also. Its always nice to have a few options in case Plan A does not quite work out.
I think as well as helping to overcome the problems, a lot of what they wanted was some reassurance and someone on hand to help and make the whole experience a lot less daunting.
The application
The application went in and most of it flew through. The 2 things to get raised were the 2 things above. We had already discussed these with the customers before making the application. That meant when the underwriter asked for additional proof of address and a copy of the employment contract, we had them all ready in hand to give to the underwriter.
In fact we had already supplied the contract of employment, but for whatever reason the underwriter missed it.
The outcome
This is one of those applications where despite the problems, it did not affect the rate they would pay. The application went in the day interest rate rises were announced by lenders. We were able to get the application in when rates were at the lowest they had been for around 15-16 months.
Since the application went in, rates have continued to creep up a little. But the most impressive (or lucky) part is that they ended up with the lender who had the cheapest products in the market on the day. It was with a lender who had been at the head of driving rates down trying to get as much business in as they could.
Summary
On paper, this application was fairly straight forward. There was an issue surrounding the employment but that was it and it was easy enough to overcome.
The reality however is that there was another problem, again nothing too difficult to overcome. But had we not picked up on it the customer would have needed to update their address on some accounts, wait for the paperwork and then send it in… It all adds to the stress and causes unnecessary delays.
I think this sums up where a good broker can come in and help. It is an extra set of experienced eyes looking over everything beforehand. It also shows that having problems does not necessarily mean you are going to pay more.