Bank Statements Not Mandatory for Some Lenders
One of the most important forms of financial evidence required for a mortgage application has been the bank statement; as part of the application process it has been a standard requirement to provide at least three months’ worth of bank statements for the lender to scrutinise.
Bank statements are inspected and analysed by lenders to get an idea of an applicant’s outgoings and general financial activities, though experts have often argued that this is technically inconsequential as what matters most is how much they earn and their creditworthiness.
Having apparently seen sense after so many years, several of the UK’s biggest lenders have now said they no longer need to see bank statements to support mortgage applications. Santander, Halifax and Virgin Money are instead placing heavy emphasis on applicants’ credit scores along with formal proof of their salary and employment status.
A move that is likely to come as welcome news to many, who despite being in comfortable financial positions may not be able to produce the most attractive bank statements.
Priorities Differ for Bridging Loan Specialists
Many of the UK’s most prominent specialist lenders have entirely different priorities. When considering loan applications, bridging finance specialists are likewise uninterested in bank statements.
Though where bridging finance is concerned, the applicant’s credit score is also unimportant, as is their ability to provide proof of income.
With bridging finance and many similar forms of commercial finance, what matters most to the lender is the applicant’s exit strategy. This means their ability to provide a full disclosure of how and when they intend to repay the loan, verifying that the lender will get back their capital in full and on time.
This can make bridging finance a particularly useful facility for applicants with a poor credit history, or the inability to provide formal proof of income at the time. Issues that often prevent private applicants and business borrowers accessing the financial support they need despite their strong financial position and capacity to repay the loan in a timely manner.
The Benefits of Independent Broker Support
Working with an independent broker comes highly recommended to anyone who may struggle to meet the standard qualification criteria of any lender. Irrespective of financial history, credit score, proof of income and so on, there are specialist financial products available to suit all requirements.
Many of the UK’s leading specialist lenders offer their products and services exclusively via broker introductions. These are not available on the High Street, nor are they offered directly to the applicant.
Consulting with a broker can help you gain a better understanding of the options available, while ensuring you get the best possible deal on your chosen loan.
For more information on any of the above or to discuss your eligibility for a mortgage in more detail, contact a member of the team at UK Property Finance today.