Lender Strives for Faster Decision-Making Process in Principle Approval
The Mortgage Works (TMW) is enhancing its Decision in Principle (DIP) process to expedite approvals for Limited Company purchase and remortgage applications. This initiative reflects TMW’s commitment to improving its lending services.
Enhancements to the Lending Process
The latest update follows the introduction of a Companies House pre-application check earlier this year. These improvements aim to streamline the application process and facilitate faster decision-making for brokers and landlords.
Key Features of the New DIP Process
Several significant enhancements have been made to the existing DIP process:
- Minority shareholders holding 20% or less can now be part of the limited company structure.
- A limited company can include up to four minority shareholders, with a combined holding of 25%.
- These minority shareholders are not required to participate in the mortgage application nor sign a personal guarantee.
- Applications will leave a soft footprint on the landlord’s credit file, reducing impact. A hard footprint occurs only when full applications are submitted.
Feedback-Driven Improvements
A spokesperson for TMW indicated that these updates are the result of direct feedback from brokers. The goal is to reinforce TMW’s support for the limited company sector and to remain a preferred option for landlords.
Ultimately, TMW’s updates to the DIP process illustrate its commitment to faster decision-making and enhanced lending efficiency in the mortgage market.
