Homebuyers can find out of they are eligible for a mortgage on a specific property before they view it thanks to a new collaboration between Rightmove and Nationwide.
They have launched a digital ‘property lending check’ service to help house hunters gain more insight into their financial capability at the earliest stage possible.
Would-be buyers will be able to receive real time information about the likelihood they will be able to obtain a mortgage on a specific home before they view the property.
Nationwide will assess typical property risks on a listing, such as flooding, or short lease lengths, to check if they would be likely to lend on the property.
Whilst buyers can obtain a Mortgage in Principle before to see how much they can borrow before house hunting, these do not express whether a specific home would be eligible for a mortgage.
It still takes over five months on average to complete a home sale and the aim of this new feature is to help speed up the process.
Rightmove said, by creating tech solutions which digitise and streamline the processes involved in buying and selling a property, it can improve efficiency.
The new feature is an addition to Rightmove’s Mortgage in Principle, which is also powered by Nationwide and helps people to understand how much they are likely to be able to borrow earlier, before they go on viewings and make offers on homes.
It can help agents to identify more proceedable buyers, cut down on wasted time, and can reduce the risk of homes falling through later in the process.
Matt Smith, Rightmove’s head of mortgages, said: “Our ambition is to build digital solutions that make the home-buying process more efficient, giving buyers a better understanding of their affordability much earlier.
“This is a first rollout phase, and we’ll be making lots of enhancements to the property lending check over the coming months.”
Mortgage experts said the new tool would help speed up the process and also provide useful insights for buyers.
Nicholas Mendes, mortgage technical manager at John Charcol, said described it as a ‘really smart move’.
“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,” he said.
“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.”
