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  • FIRST POST
    shapecontractor
    Mortgage application with Senior Underwriter?
    • #1
    • 23rd May 12, 4:43 PM
    Mortgage application with Senior Underwriter? 23rd May 12 at 4:43 PM
    I think I detest being self-employed in this current economic climate. My wife and I are currently going through a mortgage application which has been agreed in principle. We've been turned down a few times over the past even with good books! We've filled in the application, submitted accounts, payslips (she's employed). We were told this would then go to the underwriters with a decision in around 2-3 days. I called them today asking how the application was progressing and was advised it is with a senior underwiter...?? Is this good, bad? anybody have any experience of this process?
    Thanks Jim
Page 1
    • Dave Ham
    • By Dave Ham 23rd May 12, 4:45 PM
    • 6,019 Posts
    • 2,841 Thanks
    Dave Ham
    • #2
    • 23rd May 12, 4:45 PM
    • #2
    • 23rd May 12, 4:45 PM
    I think I detest being self-employed in this current economic climate. My wife and I are currently going through a mortgage application which has been agreed in principle. We've been turned down a few times over the past even with good books! We've filled in the application, submitted accounts, payslips (she's employed). We were told this would then go to the underwriters with a decision in around 2-3 days. I called them today asking how the application was progressing and was advised it is with a senior underwiter...?? Is this good, bad? anybody have any experience of this process?
    Thanks Jim
    Originally posted by shapecontractor
    Sorry Jim, I think this is just made up.

    Everyone always tags on Senior Underwriter if you have waited a while and almost a common blag.

    Being Self Employed should not be an issue, they score in the same way as they would employed although do require a few more numbers, figures and maybe confirmation from a qualified accountant.

    Good luck
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • The J
    • #3
    • 23rd May 12, 4:48 PM
    • #3
    • 23rd May 12, 4:48 PM
    Just means its with an underwriter. They all seem to be senior underwriters these days, once they've been in the job 3 weeks they are now "senior".

    Best of luck
    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.
  • shapecontractor
    • #4
    • 23rd May 12, 5:41 PM
    • #4
    • 23rd May 12, 5:41 PM
    Thanks for the replies and that has put our minds at rest in the shorth term at least. If only they'd said it's still with the underwriters but delayed due to how busy we currently are etc I would not have gone through every scenario of why it has gone to the senior underwriter... when you're told that then you just assume the worst especially after previous knock downs...
  • Simon gloster
    • #5
    • 23rd May 12, 7:00 PM
    • #5
    • 23rd May 12, 7:00 PM
    Underwriters have different lending mandates.

    Principle/snr underwriters can authorise or agree bigger loans. They do exist.

    For eg a norm UW would not be able to agree a 10m loan for a prem footbeller. Anr get involved for 1m loans or more or where a norml uw has picked up something amd needs it confirmed and scrutinised by a higher lending authority.

    Personally i'd be worried if self emp as they can liase with HMRC about what income is declared for tax and whats used for borrowing.

    If no descrepency, then dont worry.
  • The J
    • #6
    • 23rd May 12, 7:06 PM
    • #6
    • 23rd May 12, 7:06 PM
    No lender has ever contacted HMRC for one of my clients. They take what HMRC say they have declared as gospel.
    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.
  • Simon gloster
    • #7
    • 23rd May 12, 7:13 PM
    • #7
    • 23rd May 12, 7:13 PM
    Await my good man. Systems are in place for a muti agency approach to prevent financial crime.
  • The J
    • #8
    • 23rd May 12, 7:52 PM
    • #8
    • 23rd May 12, 7:52 PM
    Good stuff, cannot stand these tax dodgers.
    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.
  • shapecontractor
    • #9
    • 23rd May 12, 8:13 PM
    • #9
    • 23rd May 12, 8:13 PM
    I agree with what you say, I'm a sole trader and the profit in my business is exactly what I paid income tax on, didn't take dividends etc so not all self employed are tax dodgers, that's normally restricted to MPs isn't it ;-) They have original returns from HMRC. I was only worried that after giving the lender everything in black and white and after agreeing in principle it was now with a Senior Underwriter? Only for him to over-rule everyone else that siad we were in with a chance and then dash our hopes of moving forward
    • Dave Ham
    • By Dave Ham 23rd May 12, 8:18 PM
    • 6,019 Posts
    • 2,841 Thanks
    Dave Ham
    Good for you - sleep easy this will be fine as you have told the truth and that is all they want and to assess you accordingly.

    I am sure you will get an answer soon, Nationwide are just a bit slow at the moment (took a punt on Nationwide due to delays)
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • lilyloo17
    • By lilyloo17 23rd May 12, 8:20 PM
    • 43 Posts
    • 5 Thanks
    lilyloo17
    Don't know if it helps as i know nothing about mortgage underwriters, but i'm a life insurance underwriter so assume principals are same. Like someone said diffident uw have diff levels amounts they can sign off - so for large cases we normally uw a case but have to send to senior uw whose being there donkies years to check case and do final sign off. Although we'll also send to a senior for an opinion if were unsure on the decision and want there take on it etc.
  • shapecontractor
    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
    • By Thrugelmir 24th May 12, 7:25 PM
    • 50,007 Posts
    • 41,653 Thanks
    Thrugelmir
    Can anyone tell me if the bank has to have had their surveyor go out before they give a yes or no???
    Originally posted by shapecontractor
    Yes they do. Part of the process.
    A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against a rainy day.
  • shapecontractor
    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
    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
    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
    Last edited by holly hobby; 29-05-2012 at 4:36 PM.
    • Thrugelmir
    • By Thrugelmir 29th May 12, 4:34 PM
    • 50,007 Posts
    • 41,653 Thanks
    Thrugelmir
    I worry about how we'll ever move at this rate?
    Originally posted by shapecontractor
    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.
    A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against a rainy day.
  • shapecontractor
    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?
  • shapecontractor
    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
    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
    Last edited by holly hobby; 29-05-2012 at 5:08 PM.
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