A fast track mortgage was once seen as an easy way to get a remortgage with no proof of an income. But, this is not what they were intended for and not what they should be used for. Who then, would benefit from the fast track service?
A fast track remortgage is straightforwardly a way of getting through the mortgage application process more quickly. The idea is that the lender does not require the borrower to prove their income. This is not the same as a self-certified mortgage where the proof is not needed because the borrower has lots of sources of income.
With a fast track remortgage the idea is that the lender has scored the borrower within the credit scoring system and the score is so high that they do not count as much of a credit risk. Probably the amount they want to borrow is also a small fraction of the property value and well below the maximum borrowing level.
In these cases, the lender might offer to fast track the remortgage process to speed up the process. In reality, this is not always as easy as it sounds. Though the offer of a fast track is there with the promise of hastening the process, recent lending problems have scared a lot of lenders and now the process is far from what it is advertised as.
The theory is that if you are a good credit risk and borrowing within your means, get the mortgage loan sorted quickly and everyone is happy. But then people started applying for fast track mortgages because they were not able to prove their incomes. So it became necessary to start randomly checking applications to make certain that the borrowers can prove their income, if needed.
Some lenders merely randomly take a percentage of applications and request that they prove their incomes. But others request that all applications prove their incomes to the remortgage brokers. This seems slightly pointless - if you have to prove your income to your broker, then can equally well pass on the details to the actual lender.
This means that in reality the only beneficiary of the fast track process becomes the lender of the money. They do not need to employ so loads of people checking and cross checking the income details on remortgage applications. It saves them a pile of money, but the rest of us go through the entire process still.
But, if you do still want to apply for a fast track mortgage, then who might they be suitable for? Well, you would need a perfect credit report so that your credit score is as high as budding. It may also help if you are not borrowing the maximum you could - both in terms of relative to your provable income and in terms of the value of the property you are buying.
But, you should not consider a fast track remortgage only because you think that you can keep away from proving your income. This is unlikely to be the case as you will nearly definitely have to prove it somewhere!
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