Mortgages Stats

BrightStart

Hi Everyone,

Since i have not come across this on this forum, i thought it will be useful to start a thread on statistics on mortgages. So to start off with does anyone have any stats on the following:


1) What percentage of applications get declined before valuation is complete?

2) What percentage of mortgages get declined after valuation is complete when there are no issues with valuation i.e. Valuation agreed to sale price?

3) What percentage of mortgages get declined after offer has been made?
For example when property purchase falls through and when you go for a new property.


Even if you do not have exact numbers, if you are experienced in this field can you take a guess what the stats might be? I think it will be really reassuring for us newbies to have an idea of this so we know what are our chances if anyone of us is in that stage of the mortgage process.

Thanks. Steve:)

ACG

Not the answer your after but its impossible to answer.

Lenders do things differently and they dont release those sorts of figures so you can only go off advisors statistics for their clients and that could easily be inaccurate as all of their clients may come from a certain type of person (eg - plenty of adverse, very well off, remortgages, first time buyers - it may not be an equal mix).

Far too many factors to give any sort of proper answer i think.

opinions4u

If I was going to pluck figures from the air, they would be:

1. 40% including AIPs.

2. 10% where more underwriting information comes to light.

3. Not sure I understand the question.

My experience is out of date, limited to one lender and is also a very broad estimate.

ACG

opinions4u wrote: »

If I was going to pluck figures from the air, they would be:

1. 40% including AIPs.

2. 10% where more underwriting information comes to light.

3. Not sure I understand the question.

My experience is out of date, limited to one lender and is also a very broad estimate.

Your 50% short there

opinions4u

ACG wrote: »

Your 50% short there

I come from a bygone age where mortgages were obtainable!

ACG

I dont believe that ever happened, its a myth.

Thrugelmir

BrightStart wrote: »

Hi Everyone,

Since i have not come across this on this forum, i thought it will be useful to start a thread on statistics on mortgages. So to start off with does anyone have any stats on the following:


1) What percentage of applications get declined before valuation is complete?

2) What percentage of mortgages get declined after valuation is complete when there are no issues with valuation i.e. Valuation agreed to sale price?

3) What percentage of mortgages get declined after offer has been made?
For example when property purchase falls through and when you go for a new property.


Even if you do not have exact numbers, if you are experienced in this field can you take a guess what the stats might be? I think it will be really reassuring for us newbies to have an idea of this so we know what are our chances if anyone of us is in that stage of the mortgage process.

Thanks. Steve:)

You should start a thread as to how to make yourself attractive as a borrower. Better to approach buying a property with a constructive plan.

BrightStart

Thanks. That is interesting. You will not believe this a revelation i have no idea about how the world of mortgages works. I am sure there are a lot of people in similar situation. Please ignore first time buyers/ remortgages/adverse credit. Thanks. Steve

Thrugelmir

BrightStart wrote: »

You will not believe this a revelation i have no idea about how the world of mortgages works.

Mortgages are low margin, low profit loans. So lenders look to reduce their risk to minimise any losses.

In essence if you have a secure income. Manage your finances well i.e. do not excessively use credit cards or loans. Do not utilise an overdraft to make ends meet. Pay your bills on time (set up direct debits if necessary). Then there's few issues.

Basically sound money management.

The use of unsecured credit is important as it shows that you have no savings, should an emergency occur. Only takes one financial mishap to trigger a downward spiral.

dimbo61

So stay away from the pay day loan providers!!!
Build up savings and pay all your bills on time.
Take out a cash back credit card and pay it off every month without fail.
Lenders like to see you have a steady income and live within your means.
The bigger the deposit the happier they are IF they need to repossess the
property