Instant UK Mortgage Approvals Could Be Available Soon
Given the changes in technology over the last decade, it seems somewhat antiquated that hopeful home buyers in England and Wales still have to wait an average of three weeks before their UK home mortgage loan is approved. Part of the reason why there is such a delay in the time period between applying for a UK mortgage and having your home mortgage loan approved is the delay it takes in process of having the property valuation undertaken. However, this could soon be a thing of the past.
GMAC-RFC and Edeus are now using the changes to technology to their advantage by introducing programs that will allow them to make instantaneous decisions on whether or not to approve a home mortgage loan. Just so that we are clear here, unlike the current practice of offering mortgages in principle, subject to the property valuation, if accepted, the offers made by GMAC-RFC and Edeus will be enforceable UK home mortgage loan offers!
GMAC-RFC and Edeus are able to make these enforceable home loan mortgage offers to customers by side-tracking the current home valuation process by using information currently held on public databases, as well as additional information from previous transactions involving the property, to give them an accurate valuation of the property which is going to be the subject of the UK home mortgage loan without having to go through the lengthy process of undertaking an actual property valuation.
While this side-track system being introduced by GMAC-RFC and Edeus is unlikely to find favor with too many property valuers, it is likely that home mortgage lenders in the UK will find this an attractive way to entice new home buyers in the UK given the expected heightened competition here in the coming months. As Ray Boulger, of John Charcol, says: “Too many customers are inconvenienced at best and, at worst, lose a property because of delays in the mortgage offer or legal process. Instant mortgage offers will kick-start the industry and revolutionise it for the better.”
With automatic credit scoring already in place, there can be little or no reason why the whole process of applying for and being approved a home mortgage loan in the UK should be delayed due to property valuations if this process can be achieved in a more timely and friendly manner making use of advances in technology. Thus, any kick-start to the UK home mortgage loan market, especially for new home buyers, where a delay of a few weeks can mean a substantial additional cost of this process is not agreed to, will likely be warmly welcomed.
28th September 2006
- What Is A Mortgage?
With the price of property ever increasing and no sign of the long awaited bursting bubble of the housing market, we ask what can young first time buyers do to gain their freedom and set up a home of their own in such an expensive arena and what is a mortgage anyway?
- Mortgage information from the FSA