So, what do we ask for?
For every mortgage application we ask for an original copy of the signed and dated declaration and the signed and dated direct debt mandate. We also ask for proof of deposit for purchases and proof of address and identification as well as proof of income and rental or mortgage history. So far, so typical.
1. Bank statements
One thing that not all brokers may be used to, is when lenders ask to see recent bank statements. We ask for bank statements because all of our lending decisions are made by underwriters rather than a credit score and these bank statements provide the vital evidence to inform those decisions.
For clients who have experienced recent credit issues, such as defaults or CCJs, the credit report might provide information on the status of their credit, but bank statements will help underwriters to understand the client’s current financial position and whether the mortgage will be affordable and sustainable.
It’s this ability to look beyond the binary information of a credit report and interpret a client’s financial behaviour that gives specialist lenders the confidence to make positive lending decisions to people who may have adverse credit registered to their name as little as six months prior to making an application. So, promptly supplying the bank statements that are requested can ensure our underwriters are able to start assessing a case as soon as possible.
2. Details of your client’s case
It’s also important to provide an explanation of your client’s case as this is almost always required, so share all the relevant information, such as reasons for the adverse credit, from the very start of an application. If we know what you know, the less likely it is we’ll need to ask you for more information.
3. Labelled Documents
When it comes to supplying documents, don’t forget to correctly label each document before uploading it and, if you have uploaded documents that have not been certified, we will still assess these, but we’ll ask you to confirm that the documents were true copies of the originals and a true likeness of the applicant (if applicable). The easiest way to do this is by sending us a secure message to confirm.
And, of course, if you’re ever in doubt about any of our requirements, just pick up the phone to speak to your dedicated BDM. With this approach, there is no reason why your application process need be adversely affected by adverse credit.
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