Credit scores preventing large loans

Nia Williams

September 29, 2011

The biggest hurdle for 43% of intermediaries was stricter credit scores in finding a mortgage for clients looking for a loan of more than £500,000.

Self-employment was the second biggest stumbling block with 37% of intermediaries saying they had trouble finding the right mortgage because their client was self-employed.

Some 35% of intermediaries said that not enough lenders offered mortgages for more than £500,000. A further 26% cited a client earning significant bonus or commission that was excluded by lenders’ affordability calculation.

Just over one in five, 22% of intermediaries pointed to clients with more than one source of income as major problems in sourcing large loans.

The lender asked a group of 680 mortgage intermediaries where they had experienced the most difficulty in finding a mortgage for clients looking for a loan of more than £500,000.

Alex Hammond, PR, brand & communications manager at Kensington, said: “The circumstances of high earners are rarely simple. Many will be business owners and even where this is not the case, total income is often made up of commission, bonus or investments.

“A one-size-fits-all approach does not suit these customers and so it is unsurprising that so many intermediaries face a number of stumbling blocks when looking for the right mortgage for a client who is looking to borrow more than £500,000.

“At Kensington we do not rely on a credit score. Instead we underwrite individual applications on their own merit, which means we can consider customers whose circumstances would be too complex for other lenders.”


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