Mortgage lenders have provided a lot of relief to homeowners during the pandemic through payment holidays and holding interest rates.
In turn, the fallout from the pandemic has made lenders cautious about lending money to business owners and individuals who have received government support, having been impacted by the pandemic. Coupled with skyrocketing house prices, banks are keen not to over lend.
The first step you should take
You should start planning as early as possible. This will give you the most options and allow you to gather all the financial information you need well before you submit your application.
Lenders are asking for additional information and scrutinising spending habits and credit reports before lending. Your business accounts will be analysed to determine how much will be lent. Lenders are working closely with accountants and advisers to certify that the borrowing is, and will continue to be, affordable.
If you’re going to use an intermediary rather than do it yourself, you should start talking to them now. They can help suggest suitable lenders. They can also help with the presentation and arrangement of financial information for your application to ensure you have everything you need so the lender views you as a worthy borrower.
How we can help as financial advisers
For intermediaries such as Wow, we have direct access to underwriters within mortgage lenders. We know who is currently lending to business owners and who isn’t. We can ensure you have all the additional information you require to support your application and also talk through cases with the lenders.
Our team at Wow can advise if you should be taking dividends and calculating how much you can borrow. If you’re a Wow client, this makes the process really easy and seamless.
We get to understand the position of your business. This, in turn, allows us to package the deal for the lender to understand what is happening in your business – both before, during, and in a post-COVID-19 world.
Along with your accountants, we can begin to discuss how your accounts need to be presented to position you for the best possible outcome.
If you’d like to discuss how you can get a mortgage, please do so at the earliest opportunity – we’re here to help.