Rightmove and Nationwide Building Society have launched an online feature which could indicate to house-hunters whether a specific property may be eligible for mortgage lending.
The new digital “property lending check” aims to give house-hunters more clarity earlier on in their moving process, by giving real-time information about the potential for getting a mortgage on a home, before they even physically view the property or put in an offer.
Nationwide will assess typical property risks on a listing, such as flooding, or short lease lengths, to indicate whether or not it would be likely to lend on the property.
Rightmove said it takes more than five months on average to complete a home sale and the new feature could help make the process more efficient.
The new feature is an addition to Rightmove’s mortgage in principle, a feature which has also been created in association with Nationwide and helps people to understand how much they are likely to be able to borrow.
House-hunters who start the mortgage in principle process via a listing page will have the option to check if that property listing is likely to be eligible for a mortgage during the application process.
Matt Smith, Rightmove’s head of mortgages, said: “This is a first rollout phase, and we’ll be making lots of enhancements to the property lending check over the coming months.”
Henry Jordan, Nationwide’s director of home, said: “We know that people who find a property listing they like are keen to know whether they’ll be able to get a mortgage on it. So, the launch of the property lending check feature is the natural next step.”
Nicholas Mendes, mortgage technical manager at broker John Charcol, said: “One of the biggest frustrations for buyers is discovering, often after they’ve found their dream property and submitted an application, that it isn’t eligible for a mortgage with that particular lender.
“While a broker can do their utmost to prevent this from happening, there are times when factors are out of their control. For example, how a surveyor assesses a property or lender-specific criteria that only come to light during internal underwriting processes.
“Some issues, like a short lease or a known flood risk, are slightly easier to identify early on. But being able to get a clearer sense of a property’s mortgage eligibility before even booking a viewing could save people a lot of time and stress.”
Mr Mendes also said it is worth remembering there are many lenders in the market, and they will each have their own appetite for risk.
He said brokers “can help sense-check whether a potential purchase is genuinely off the table or if there might still be a workable route forward”.
Stumbling blocks when looking for finance can sometimes arise with properties with short leases, those built from non-standard construction materials, homes in high flood-risk areas, flats above some commercial premises, and properties with structural issues such as subsidence, serious damp or roof problems, Mr Mendes said.
He added: “Some lenders are also cautious with new-build properties, especially when they believe the asking price has been inflated above market value. In these situations, buyers may find the mortgage offer is lower than expected.”
