New Rightmove feature criticised as “potentially dangerous”

Online property platform Rightmove has partnered with Nationwide to launch a new digital tool that helps buyers quickly determine whether they can get a mortgage on a home.

This “property lending check” feature expands on the platform’s Mortgage in Principle interface and aims to inform buyers quickly on the likelihood of whether Nationwide would be likely to lend on a property.

Previously, Rightmove visitors could use the platform’s Mortgage in Principle feature to find out how much they would likely be able to borrow, but this didn’t help determine whether the property in question would qualify for a mortgage.

This new feature will see Nationwide assess typical property risks on a listing, such as flooding or short lease lengths, to check if it would likely lend on the property.

New tool may risk devaluing properties

While this tool aims to cut down the time needed to complete a home sale and make the buying process easier, it has attracted criticism from other mortgage providers, who believe it may increase the risk of a property being devalued based on Nationwide’s criteria.

Speaking to Sky News’ Money blog, Lodestone Mortgages & Protection director Craig Fish warned that the new Rightmove feature was potentially a dangerous move.

“Let’s be clear: this is based solely on [Nationwide’s] criteria, and they decline more properties than most lenders. This feature could end up devaluing properties, reducing interest in homes that other lenders would be happy to finance.”

“It may create false red flags that damage confidence rather than boost it. The risk is that sellers suffer, buyers get confused, and solid homes are unfairly sidelined,” Fish said.

Fish’s concerns were echoed by Yellow Brick Mortgages managing director Stephen Perkins, who noted this tool may give Nationwide a disproportionate impact on vendors’ ability to market properties on RightMove.

Streamlining the homebuying process through digitisation

This new digital tool forms part of a concerted effort by both Rightmove and Nationwide to streamline the homebuying process and reduce unnecessary friction.

It currently takes over five months on average to complete a home sale in the UK, and this frustration can be compounded by lending checks failing late in the process.

“We know that the homebuying process needs simplifying and streamlining and technology plays a crucial role in that,” said Nationwide Director of Home Henry Jordan.

“By working closely with Rightmove, we’ve already been able to introduce the successful Mortgage in Principle tool. However, 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.”

Rightmove Head of Mortgages Matt Smith spoke to the company’s broader vision of modernising the process of buying a home in the UK, noting that the tool would be improved over time.

“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.”

“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.”