Getting to a ‘Yes’ decision on lifetime mortgages

When it comes to applying for a lifetime mortgage, the time it takes to get from submitting the application, to the client receiving their funds and the adviser getting paid their procuration fee by the lender can depend on a number of factors.

Of course, the speed with which a lender can move that application through their process (from application to valuation, offer and completion) plays a big part in this. Some lenders inevitably have faster systems than others and to a large extent, this is beyond the control of the adviser.

However, there are ways in which advisers can help ensure that an application passes quickly and smoothly through any lender’s process – removing unnecessary checks, verification and validation of information vital to the completion of the loan.

Common property issues

Advisers are, of course, not valuation or surveying experts by trade, but it can help to be on the look-out for common issues that might stall an application once it’s in front of an underwriter. Things such as flat roofs, septic tanks, solar panels and nearby commercial property can all have an impact on whether or not a lender will consider a property.

And any works the client may have had done to their property – rewiring, an extension, loft insulation etc – can also affect an underwriter’s decision.

Being aware of these issues and getting more details up front from the client, including certification and guarantees relating to any works which can then be submitted along with the application, can remove days of delay further down the track.

Specialist legal advice

Every equity release client must receive their own independent legal advice and while they are free to use any solicitor they prefer, choosing a specialist equity release legal firm can save a huge amount of time as specialist firms are far more familiar with the specific processes and paperwork involved in a lifetime mortgage transaction. In fact, based on more2life research, choosing a specialist versus non-specialist legal firms can shave as much as 20 working days from typical application > completion timeframes.

Offer conditions

Once a client has their offer from a lender, they may think it’s the end of the process bar the formalities of completion. However, offers can come with conditions attached which must be resolved before completion can take place. Vital time can be saved by scrutinising any offer conditions attached as soon as the offer documentation is received and liaising with the client and their solicitors to ensure the conditions of the mortgage offer are met.

more2life has produced some helpful guides on these issues for advisers, including ID verification (a common issue that can cause delays in lifetime mortgage applications), common reasons for decline and a guide to offer conditions, designed to help advisers avoid the pitfalls of a stalled or declined lifetime mortgage application. Go to the Learning Lab on the more2life website for more information and downloads.