UK property platform Rightmove (RMV.L) and building society Nationwide have launched an online feature that allows potential homebuyers to understand if a specific property is likely to be eligible for mortgage lending.
They said that the new digital “property lending check” is a global first, in enabling homebuyers to receive real-time information about the likelihood of getting a mortgage on a house before viewing it and make an offer. The feature aims to give “home-hunters more mortgage confidence, much earlier in their moving journey,” they said.
According to the announcement on Wednesday, Nationwide will assess typical risks on a listing, such as flooding or short lease lengths, to determine if mortgage lending would be likely on the property.
Previously, a house buyer would apply for a mortgage in principle, to find out how much they might be able to borrow from a lender. However, this would not allow them to find out if a specific property they wanted to view was likely to be eligible for a mortgage.
It typically takes more than five months to complete a home sale, Rightmove said.
The property lending check feature is in an addition to Rightmove’s mortgage in principle, which is powered by Nationwide. They said that this can help agents identify more proceedable buyers, cut down on wasted time and reduce the risk of deals falling through later in the process.
Matt Smith, head of mortgages at Rightmove, said: “This is the next step in our mission to digitise more of the UK property market – the ability to give home-movers a real-time view of whether they are likely to be able to get a mortgage on a specific property.
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“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.”
Henry Jordan, director of home at Nationwide, said: “We know that the homebuying process needs simplifying and streamlining and technology plays a crucial role in that.”
In addition to the mortgage in principle tool, Jordan said 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.”
Most major lenders are now offering mortgage deals under 4%, as the rate of borrowing falls in light of the Bank of England lowering interest rates. The BoE announced a quarter-point rate cut on Thursday, lowering the base rate to 4.25%.