Rightmove and Nationwide Building Society have partnered to launch a new online tool in a move aimed at streamlining the home-buying process.
This “property lending check” feature provides prospective buyers with early insights into a property’s mortgage eligibility, even before viewings or offers.
The tool assesses common property risks, such as flood risk and short lease lengths, to provide a real-time indication of whether Nationwide would likely lend on a specific property.
With the average home sale taking over five months, this feature could significantly reduce wasted time and effort for buyers pursuing properties unlikely to secure mortgage approval.
This new addition complements Rightmove’s existing “mortgage in principle” feature, also developed with Nationwide, which helps users estimate their borrowing capacity.
Now, when initiating a mortgage in principle application through a property listing, buyers can simultaneously check the property’s potential mortgage eligibility.
This combined approach empowers buyers with crucial financial information early in their search, potentially leading to a more efficient and less stressful home-buying experience.
Matt Smith, Rightmove’s head of mortgages, said: “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, Nationwide’s director of home, said: “We know 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.”
Nicholas Mendes, mortgage technical manager at broker John Charcol, said: “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.
“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.”
Mr Mendes also said it is worth remembering there are many lenders in the market, and they will each have their own appetite for risk.
He said brokers “can help sense-check whether a potential purchase is genuinely off the table or if there might still be a workable route forward”.
Stumbling blocks when looking for finance can sometimes arise with properties with short leases, those built from non-standard construction materials, homes in high flood-risk areas, flats above some commercial premises, and properties with structural issues such as subsidence, serious damp or roof problems, Mr Mendes said.
He added: “Some lenders are also cautious with new-build properties, especially when they believe the asking price has been inflated above market value. In these situations, buyers may find the mortgage offer is lower than expected.”
