Mortgage Applications

Nov 26, 2004 2 Replies

Who actually approves or declines mortgage applications. Is it an automated process or is there someone who has the final say. Would for instance a person approve advances of over 100,000 but it's an automated process for under this amount.


Who actually approves or declines mortgage applications. Is it an automated process or is there someone who has the final say. Would for instance a person approve advances of over 100,000 but it's an automated process for under this amount.

Each bank will be different.

Mortgages are rarely sanctioned on an automated system - though many lenders use automated processes at some point in the process.

At some point a sanctioner will consider the lend - depending upon experience and training different sanctioners will have different lending limits; therefore, a 65,000 lend might be considered by a more junior sanctioner than a 530,000 lend!

That said, most bank staff have the authority to decline w/o reference to a sanctioning unit if the deal is evidently silly. Ie I earn 20,000, have

10,000 unsecured debt and wish to borrow 250,000.....not likely to even get past the first hurdle anywhere!

MC

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