In the second charge market, the application turnaround times are usually a lot faster than with a mortgage for the initial purchase. However, we are always looking for ways to further reduce the time from application to completion as well as reduce costs to the applicant. As applicants would have already had a valuation carried out when they purchased the property, this is one element of the process where time and cost savings can be made.
One of the ways we achieve this is to use an Automated Valuation Model (AVM) for some applications, as this helps to reduce the time and costs involved in physical property valuations. Our Master Brokers and Packagers have direct access to this AVM allowing them to identify early on in the process which is the most appropriate valuation and therefore product.
United Trust Bank recently completed a £25,000 second charge mortgage for a couple on their main residence with the funds being used to clear some credit cards and fund some minor improvements throughout their home.
The application was received with the latest two payslips for the applicants, an AVM and the other packaging requirements to allow the case to be fully underwritten. The AVM evidenced that the value of the security was suitable for the product LTV and amount of loan requested. With the property value increasing since purchase, a figure which was confirmed by the ten comparable properties given in the report, and combined with a solid confidence score we were happy to proceed without the need for a valuer to physically visit the security property.
The day after receipt of the case, the Binding Offer was issued to the customer and to the introducer on-line. Offers are accepted by returning the original Mortgage Deed, which the customers did the following day, allowing completion to take place just 2 days after the case was received.
At UTB we work hard to maintain an underwriting process which allows us to understand each individual customer’s application closely, whilst also offering cutting edge solutions to ensure we balance underwriting requirements with an excellent customer journey.