Mortgage application with Senior Underwriter?

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  • Rang again today and was told the same as yesterday "with a senior underwriter and should have an answer by close of play tomorrow". Can anyone tell me if the bank has to have had their surveyor go out before they give a yes or no???
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    Can anyone tell me if the bank has to have had their surveyor go out before they give a yes or no???

    Yes they do. Part of the process.
  • Got a call on Friday from Natwest.....application declined due to amount of unsecured debt but were asked the question, 'if you can reduce it we would reconsider'. Seems a simple Question but I asked how much we would need to reduce it by to get the application agreed.......'We can't advise you that', I was met with, although the girl I was speaking with was not an underwriter.....It's madness. So now I must write a letter advising them how much we intend to reduce it by and with what funds (obviously not borrowed). Anybody got any experience of this process? I did complain because I could reduce it by £1000 and still get declined or reduce by a larger sum but where do we stop? We're looking to mortgage £199,000. I did ask based on our current unsecured debt (ALL repaid on time without any defaults by both myself and Mrs), what would you allow us to mortgage....again...'we can't provide that info'....pure utter madness. I wouldn't mind, but we bank with Natwest. I worry about how we'll ever move at this rate?
  • The_J
    The_J Posts: 1,250 Forumite
    How much unsecured debt have you got?
    The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.
  • holly_hobby
    holly_hobby Posts: 5,363
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    edited 29 May 2012 at 3:36PM
    Presume this was a direct case ?

    If not get your broker on the ball, they can often find out info from the UW or via their BDM, that you wouldn't receive directly.

    The bank are looking at the exposure you have to debt as a whole, if its rolling debt (with further access to unused credit) via credit cards, store cards and flexi loans - the infrence is that post completion it could keep going up, and your finances will become more and more squeezed - with their view that eventually something will have to give (and they don't want it to be your mge payments !).

    As J says, if you give us an idea of the amount and what U/S debt you have, we may be able to guide you a bit more.

    Hope this helps

    H x
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    I worry about how we'll ever move at this rate?

    If moving is a priority. Tighten your belts, make some sacrifices and start repaying the unsecured debt. The days of easy lending are over. Banks are no longer interested in funding lifestyles.
  • I have a loan of £20k £160 month 18yrs remaining (divorce settlement)
    Wife has car loan and pers loan £16k £400 month 4 yrs remaining.
    She also has visa £435 balance. Both have v.good credit ratings experian.
    We earn approx £58k per annum combined.
    We have offered to reduce this by £5K on wife's side. Just can't understand WHY bank won't give us a figure of how much to reduce debt to secure what we require?
  • Yes Holly it was a direct case. we're now caught in the fact that our flat we currently reside in is SSTC but can't get this mortgage. We do not need to borrow further and indeed have been reducing our financial committments over the years. The sale of our flat will provide enough money for deposit, all fees, removal costs and the necessities associated with our purchase. We're thinking that if we go through with the sale of the flat and reduce the committments, should we not get the mortgage this time then at least we can try again in a few months with only the deposit and fee money to hand?
  • holly_hobby
    holly_hobby Posts: 5,363
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    edited 29 May 2012 at 4:08PM
    Although I know not ideal, that would be a sensible idea, and your position of not being in a chain would strengthen your negotiating point re any offers you make.

    You have £560pm & ccard in outgoings, the amount of gross debt circa 40k (as I don't know os balances on the 2 loans and HP), and annual income of 58k. THe gross debt to income is high - but as I say I don't know current os balances, or your disposible income figs after tax and reliefs. I understand your comment re credit ref scores, and that you may have never missed a payment, but its the actual balance of credit to income that is the issue with the UW, and your poss over exposure. Obv clearing the highest mthly commitments is a forgone - if permissible.

    Have you had a chat with an underwriter, I know ordinarilly, the UWs won't speak directly to the public (which is why I asked about a broker). If you could speak to him, and put your position, he may not tell you, but instead "guide you" as to reducing what by how much may get it through. (he may suggest paying off and closing your ccards if they have high available credit limits, to reduce the access to further rolling credit which may be tipping you over)

    Hope this helps ...

    Holly
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    Just can't understand WHY bank won't give us a figure of how much to reduce debt to secure what we require?

    Tomorrow it may be different. As the rules can change overnight. The bank cannot guarantee you an offer that's the issue.

    Could you clear either your wife's car loan or personal loan? To reduce your liabililties.
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