What do brokers ask lenders when applying for a secured loan?
Thursday, 27 September 2007 12:00
What can brokers ask and not ask mortgage companies when you are organising a secured loan?
Drawing on years of experience mortgage adviser Katie Tucker - of mortgage broker John Charcol (www.charcolonline.co.uk) - takes one of our readers through secured loans and what they mean for their finances.
Mrs Rawlings from Bedford asks:
If applying for a secured loan on a property what questions would a broker ask the mortgage company? Do they just need to verify you have a mortgage or do they delve a lot deeper?
Katie responds:
They would not ask the mortgage company anything directly and in any case, unless you have signed a form giving special permission, the mortgage company would just refuse to tell them anything; under the Data Protection Act. The mortgage company may have to confirm they allow a second charge to be placed on the property.
The secured loan company would ask you how much is outstanding, who it is with, and if you have had any credit problems. They would also do a credit search on you which would show if there have been any missed payments. They may also ask you for a mortgage statement to show that your last 12 payments have been made in full and on time.
You do have the right to ask them yourself to detail absolutely everything they are going to ask for before you start. It is important though you never withhold any information when applying for a loan or mortgage.
If you have a question for Katie, go to the myfinances Ask the Mortgage Expert section.
For more information on the issues discussed here, go to www.charcolonline.co.uk or call 0800 358 5560.
Charcol Limited is authorised and regulated by the Financial Services Authority (FSA registration number 427339). The FSA does not regulate credit cards, personal loans or some investment mortgage contracts. Some Buy To Let mortgages are regulated by the Consumer Credit Act (CCA).
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