Finding out if your mortgage application would be approved in the time it takes you to get a coffee sounds like a dream but it is actually possible.
Two lenders, the Yorkshire Building Society and Halifax, have launched new mortgage eligibility checks that take up to 15 minutes.
Both, YBS and Halifax have launched tools that enable customers to start their application online and get an agreement in principle from their lender.
== Halifax AIP tool to simplify customer journey ==
Customers keen on getting a Halifax mortgage can use the lender’s new Agreement in Principle (AIP) tool to get a mortgage lending decision within 15 minutes.
The new tool, designed to make the customer journey simpler and more efficient, is available via mobile phone, tablet or desktop computer.
The lending decision is based solely on information relating to the person(s) applying for the AIP so there is no requirement to enter property details such as value or deposit amount. Customers just need to enter information about their circumstances, income and commitments to receive a lending decision.
Once they have received Halifax approval borrowers are able to use a calculator to edit the term and deposit amount to illustrate the impact this has on their monthly repayments.
Other costs such as stamp duty and legal fees are displayed to demonstrate the extra costs associated with buying a property.
The lending decision will then be emailed to the person(s) applying along with information about next steps in the mortgage process. The customer also has an option to send the lending decision to their estate agent and/or family member.
Craig McKinlay, mortgages director at Halifax, said:
“Being able to complete the application while on the move on both mobiles and tablets helps our customers fit the process around a hectic schedule.”
== Yorkshire Building Society offers borrowers less stress & more flexibility ==
Yorkshire Building Society will also enable customers looking to take out a mortgage a free 10-minute eligibility check.
The lender is aiming to relieve some of the stress around buying a new home as well as offer borrowers a more flexible way to apply for a mortgage in a very competitive market.
Having the assurance of your lender that you would get the necessary funding before you commit to a specific mortgage, loan amount or term of length will certainly lessen the pressure on would-be buyers.
YBS customers can now start their application online and gain a mortgage approval in principle via the society’s website before transferring and completing their mortgage in branch or over the phone if they prefer.
An approval in principle is a free ten-minute check which allows borrowers to find out whether the Yorkshire would lend to them and, if so, how much. This is useful evidence that shows that a borrower has been approved for a mortgage and is a serious buyer. The result is valid for 30 days and is subject to fuller income checks once it gets to the full application stage.
Nick Gander, e-commerce manager for Yorkshire Building Society, said:
“We understand many of our customers have busy lives and want to apply for a mortgage in the most convenient way for them.
“We hope this move will help to take some of the stress out of buying a home by making the mortgage application process a smooth and straight-forward experience for our customers.”
