Mortgage Application with Underwriters? Why?

dixichick

I applied for a mortgage with the Halifax and was told over the phone it was approved.
When I went to the branch to pay a deposit on the new build I have chosen I was told that my application had passed with a C PASS and would have to provide proof of the following:

6 months bank statements
pay slips
Proof of maintenance payments
Proof of tax credit & child benefit

I have done this and am awaiting confirmation. The mortgage advisor is great and is telling me not to panic - does all this mean my application could be declined?

Not feeling very hopeful so if anyone has experienced this I would love to hear the outcome!

Thanks

opinions4u

It means that "computer says yes" but human eyes need to look over the documentation provided.

As long as everything is "clean" and adds up to what you said it should add up to, everything will be ok.

Try not to lose too much sleep while you wait for the outcome.

dixichick

Thank you for your advice - I'm just very nervous about it as it all seemed very simple at the start. Do you know if it is a long process? I only submitted the info yesterday.

dunstonh

does all this mean my application could be declined?

yes. Any referral to underwriters has that option available.

Basically, there is something in your scenario where you are probably pushing the limits. It may be your income, your loan to valuation or something else. Or it could just be a random check.

The fact you have to show proofs relating to earnings and expenditure suggests you are pushing the income limits and the fact its a new build doesnt help.

dixichick

Thank you - yes I think that could be the problem. Having to pull everything out to try and get this - I think it will be declined.
Will have to wait and see but not hopeful.

koexelek

dixichick wrote: »

Thank you - yes I think that could be the problem. Having to pull everything out to try and get this - I think it will be declined.
Will have to wait and see but not hopeful.

It's a good sign when they ask for more information though.......at least it means they are giving it proper consideration.
Most lenders will decline things at outset these days if they are not 100% happy with the case

luckyfool

dixichick wrote: »

Thank you - yes I think that could be the problem. Having to pull everything out to try and get this - I think it will be declined.
Will have to wait and see but not hopeful.

Typically A+B passes with Halifax sail through without much in the way of human intervention (and A+B passes normally constitute about 90% of accept's in my experience). C passes are basically borderline pass/fail cases, and on these they will request the kitchen sink, and then go through it with a fine tooth comb. At the end of the day if your payslips back up the income, and your bank statements are squeaky clean and show that you manage your money well then I wouldnt worry too much. Bank statements can tell underwriters alot about you, so do not be surprised if they come back asking about some payments (i.e. looking for undeclared credit commitments that were not picked up on the credit search). The danger is if you have frequent bounced payments/unauthorised overdrafts, or live in your overdraft, in that kind of circumstance, and especially in the current environment you might run the risk of it returning as a decline. Fingers crossed for you!

nervousftb_3

sorry if this is a stupid question, but don't all lenders ask for proof of income etc with a mortgage application? i assumed this was standard practice. we recently got mortgage in principle with c&g via computer, were then asked for proof of income, bank statements etc as soon as we sent off full application. we are still waiting for their decision....

luckyfool

nervousftb wrote: »

sorry if this is a stupid question, but don't all lenders ask for proof of income etc with a mortgage application? i assumed this was standard practice. we recently got mortgage in principle with c&g via computer, were then asked for proof of income, bank statements etc as soon as we sent off full application. we are still waiting for their decision....

In the current environment about 90% of lenders and applications will require some form of income proof, however how much is asked for depends on your credit score, and other aspects of your case.

e.g. C&G ask for income proof in pretty much every case, but they would not always ask for Bank Statements.

Halifax do not normally ask for income proof up front (i.e. they fast-track) if you get an A or a B pass and are borrowing less than 75%, or if you get an A pass and are borrowing any amount. Of course by applying you are declaring that the income proof is there if required and the lender always reserves the right to request proof at any stage of the application, and sometimes even after the mortgage has completed.

dixichick

Thank you for your posts. I am hoping that by asking for this info that all is not lost - they didn't say NO straight away.
My bank statements will show all I declared - I have an overdraft which I just cleared and would have been overdrawn for part of the month. However I have no bounced payments/cheques or charges.
Fingers crossed - I so want this house - have been renting for almost 2 years at £550 a month!

TEDDYRUKSPIN

Normal practice. As you have nothing to hide, do not worry about it!