Case quality

Lenders are looking very closely at the quality of every mortgage application that's submitted to them. Not packaging mortgage cases fully and correctly could have serious consequences for you and your firms as lenders start to look at ways to reward good quality but  penalise bad quality. Good case quality means getting it right first time and involves a thorough and correct application with all relevant and accurate supporting documentation.

Most lenders provide guidance notes to help you understand what's required. These guides can either be found on their websites or on the lender pages of our Mortgage Club website. Please take the time to know what’s needed before you submit an application.

Helping you

To help you we’ve produced our own Case quality top tips  PDF: 38KB . These can be printed off and used as a ‘quick guide’ to what you need to think about before submitting your mortgage cases. We’ve also created the following table that highlights the key things currently on lenders' minds and includes simple steps you can take to minimise any potential problems.

 

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Metric What lenders look for What can you do?

Quality of submission

Lenders need cases to come to them complete with all documentation provided at the same time. This helps them underwrite the case and maintain their service levels.

If cases are packaged fully first time, lenders will have more time to accept more cases, this will benefit us all.
  • Look at lender packaging guides and make sure all the supporting documentation required is submitted with the application.

  • Make sure the information on payslips, P60s, accounts etc, correspond exactly with the details entered on the application form.
Apps to

Offer/Completion

Some lenders measure the percentage of applications that get offered. Others are more interested in those that proceed to completion. If a firm has a high percentage of cases that never go to offer this could be because the case either fails to meet the lender criteria or it hasn't been packaged correctly.
  • Always carry out a DIP or AIP before submitting an application.
  • Research the lender’s criteria to make sure your customers’ circumstances fit.
  • Follow the above submission guidelines.
  • A successful DIP or AIP does not always means a case will go to completion. The information and supporting documentation needs to be relevant and accurate for every case.

Interest Only 

Lenders continue to review their interest only criteria for maximum LTV accepted and acceptable repayment plans/vehicles.
  •  Make sure interest only is appropriate for the customer and they have a robust and plausible repayment plan.
  • Check this fully meets the lender's criteria before submitting.
  • Evidence of the repayment plan/vehicle will always be needed and will differ from lender to lender.
  • Within the application process, some lenders have drop down boxes for information as well as free-text boxes. It's vital that the completed information is consistent in both places and supported by the required documentary evidence.

Into retirement

Lenders need to understand how the loan will be repaid. Evidence of income or other forms of repayment will be required on all cases that continue into retirement.
  • You must be familiar with each lender's policy on lending into retirement as they differ greatly.
  • Some lenders will lend into retirement only if the customer remains in active employment and will not take into account pension income.
  • Be clear of all lender requirements and make sure all supporting documentation is consistent with the application and can fully evidence suitability, affordability and repayment.

Declines/Cancellations

Having a case declined is bad news for your customer and you. Lenders want high quality, low risk business and scrutinise the suitability and affordability of every case introduced to them. A high number of declines or cancellations will suggest to a lender that case quality is poor and lead to stronger reviews and monitoring. This all builds up to an overall picture a lender will have of you and your firm.
  • A successful pass at AIP/DIP stage will not necessarily mean the case will proceed to offer/completion.  
  • It's important to understand lenders' policy and criteria and make sure your applications fit with all supporting documentation and are accurate and consistent with the application details.

Arrears

Lenders know that some customers will fall into arrears and will predict the level of expected arrears by profiling new borrowers against similar customer types. They will also price a degree of risk into each new mortgage product, to allow for some inevitable default.
  • Make sure you comply with your internal advice standards and affordability guidelines.  
  • Satisfy yourself that the customer can afford the repayments now and for the future of the mortgage term.

Right first time

We do understand the lender isn't always right. Their criteria and product changes aren't always communicated as well as they could be. We're also aware of patchy service standards too, as we have lenders in the market processing large mortgage volumes.

Taking that extra bit of time when submitting every case to a lender and getting it right first time will only pay dividends. It will help you and your firm, but most importantly, your customers.