Lenders tightening disclosure requirements for loan applicants

Recent tightening of lending standards and practices now mean that from 1st July 2018, you may have to provide a whole lot more information about your financial position when applying for a loan.

 

Lenders are now required to place a much greater emphasis on checking an applicant’s capacity to repay loans when assessed against current financial commitments. 

Previously, most lenders were comfortable with fairly generalised details of an applicant’s spending.

From July, the requirement is for far greater detail, with several lenders demanding expense figures for 13 different categories. And we expect this to become the standard in due course. 

With modern technology, little gets missed in the process. If you fail to be up-front about all of your expenditure, and their systems discover an omission, this could result in much greater scrutiny or even turning down your loan application. 

Since this is now ‘the new norm’, applying for a loan has not only become more complicated, but far more time consuming, especially when applying to more than one lender. 

But I can help take much of this burden off your shoulders. With Smartline, you only need to provide your information once and our system takes care of the rest, even when applying to multiple lenders. 

Please feel free to give me a call for a no-obligation discussion about your needs and how I may be able to help. You’ll find my contact details here

Cheers

Michelle

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