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Re Mortgage application gone to underwriter - is this bad?
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# 1
jen30
Old 29-09-2006, 5:46 PM
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Question Re Mortgage application gone to underwriter - is this bad?

My DH and I have applied to the Nationwide for a re- mortgage ( we are currently with RBS). I phoned up today and apparently it's gone to the underwriters. Everything was ok and agreed when we applied so I don't understand why they've done this.

Do they usually get refused? We have no arrears with out mortgage but do have a lot of outstanding loans. We would not be paying more than we do now so can deffinately afford the payments.

I'm at a loss. Waiting for someone to phone me back but not sure when that will be.

Thanks in advance for the help

Jen
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# 2
Carter
Old 29-09-2006, 5:52 PM
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It would be impossible to say if it will be accepted or not, depends upon why it was referred. My mortgage application was also referred to an underwriter (not Nationwide however). In my case I am assuming it was because the amount I requested was just above the normal lending multiples. It went through no problem. You would be best to contact them directly for an update.
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# 3
maryjane01
Old 29-09-2006, 6:26 PM
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Mine also got refered to an underwriter and then went through ok. I guess it depends what makes yours a non standard case. We had a 100% mortgage, but also a BTL mortgage in the background which we wanted to keep.
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lilyann1
Old 29-09-2006, 7:43 PM
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I have just applied for mtge less than 70% to value.
Was told that it may be refferred to underwiters, as my husband has got life cover with critical illness arranged,but I had only got life cover arranged on myself and not with critical illness( i do not work and my OH can pay salary and all exps on his own).OH also has accident and sickness cover to cover the mortgage and insurance payments, but not to cover food bills????
I have said we have savings too ,so not worried as we thought we would be well covered.Is this just a ploy for them to get you to buy more products!!!
As well as the mortgage payments each month we are paying out over £120 pmth in insurances to cover unexpected events!!!
We'll just wait and see what they say.
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# 5
AndrewSmith
Old 29-09-2006, 7:47 PM
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Every mortgage case is 'underwritten' by one way or another.

It is perfectly normal and no decision is ever made until the lender has seen the whole application with all suporting documentation.

Quite normal.
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# 6
ronnie
Old 29-09-2006, 9:31 PM
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Every mortgage is looked at by a underwriter, even if a mortgage broker or member of bank/building society staff looks at your application and tells you all is ok they still dont have the final say.

They package the application checking the forms are all completed and signed, send this off together with any other documents needed example your wage slips, bank accounts, p60s etc etc

These are then looked at along with the propertys valuation and then a lending decision is made by a underwriter.
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# 7
Carter
Old 29-09-2006, 10:15 PM
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I dont think all applications are looked at by underwriters although all mortgage applications are underwritten (automatically) based on the information available. Only the non-standard or complex cases are individually assessed based on the increased risk, this is normally carried out by a separate team.
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# 8
AndrewSmith
Old 29-09-2006, 10:44 PM
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All mortgage applications are approved by an underwriter (sometimes called risk assessor) prior to the mortgage offer being produced.

This is usually done once the valuation has been recieved along with all supporting documentation. Valuation reports and supporting documentation cannot be 'automatically' assessed and have to be approved as suitable by an underwriter.
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# 9
jennifernil
Old 29-09-2006, 11:32 PM
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We are also remortgaging with Nationwide and were told exactly what AndrewSmith has said above. Don't think you should worry.
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# 10
foreversummer
Old 30-09-2006, 3:26 PM
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Quote:
Originally Posted by AndrewSmith
All mortgage applications are approved by an underwriter (sometimes called risk assessor) prior to the mortgage offer being produced.

This is usually done once the valuation has been recieved along with all supporting documentation. Valuation reports and supporting documentation cannot be 'automatically' assessed and have to be approved as suitable by an underwriter.
Surely though the eligibility issues and income checks are done prior to valuation? I've always thought that once they instruct the surveyor to do a valuation you know they are prepared to lend you the money, subject to valuation of course.

I know for a fact that my recently mortgage went to the underwriters before valuation.

Everything was fine by the way.

Foreversummer
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# 11
Carter
Old 30-09-2006, 4:08 PM
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Mine went to an underwriter before the valuation was instructed too

On a slightly separate point but this post made me think about my own application, I have not provided proof of income. I thought that was standard on all applications and even more so as it is just over their normal income multiples? Very odd indeed. I have my mortgage offer though so not too concerned.
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# 12
AndrewSmith
Old 30-09-2006, 5:42 PM
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Quote:
Originally Posted by foreversummer
Surely though the eligibility issues and income checks are done prior to valuation? I've always thought that once they instruct the surveyor to do a valuation you know they are prepared to lend you the money, subject to valuation of course.

I know for a fact that my recently mortgage went to the underwriters before valuation.

Everything was fine by the way.

Foreversummer
In somecases yes, however the case will still be sent to an underwriter following the valuation for final assesment to check any conditions or adverse information in the valuation.
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# 13
ronnie
Old 30-09-2006, 6:31 PM
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Most of the main lenders will not fully underwrite your application until they get that valuation in there hands, basically if you dont get a "offer letter" then your mortgage is not approved till then.

Ive dealt with complaints from people who have been told there mortgage is a "done deal" etc, only for when its been underwritten for something to crop up
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