Borrowers who have had multiple mortgages may soon be able to cut the time taken to apply for a mortgage, if the Nationwide Building Society has its way.
The building society has called for a simplification of the process from the Financial Conduct Authority, for those who have previous experience of the mortgage market. Nationwide believes that the application process, along with the new affordability rules, work fine for a first time buyer, but are annoying for those who have experience of taking on a mortgage. According to the chief executive of Nationwide, Graham Beale, the process is the same whether you are a first time buyer or purchasing your third property. He says:
“If you know what you are doing and you are quite clear you want a two-year fix, and we spend three hours to convince you that you need a two-year fix, you think – come on, let’s cut to the chase and just do it.”
Beale believes that the Financial Conduct Authority may be willing to discuss the proposals. He added that they need to find a way to make sure the product is affordable, while respecting that the borrower has an understanding of the process. The chief executive is also calling for the 8% corporation tax surcharge to be made exempt for building societies, as they are not a bank and are not responsible for the financial crisis.
All borrowers, whether first time buyers or veteran property buyers, need some advice when buying a home, especially when faced with a large selection of products. A CeMAP trained adviser can help you to make the right choice.