Underwriters!

holly_hobby

Hi,

Well you put it to the UW that with the equity released you will be repaying cards x, y and z all off ( or all cards/rolling debt if thats the plan), and that you will be closing the accounts upon their full payment, confirmation of which you shall provide to them - i.e you could get a letter of your ccard providers confirming the closure of the account. Or the lender may do another quick credit check to see that he accts were redeemed (although lenders aren't always speed to update Credit Records), that type of thing.

Now, there is nothing stopping you applying for new cards once the mge has completed - but remember the criteria that you fitted when you originally qualified for the cards, may no longer be the same, and you may now fail their application critera and/or only receive a low credit limit in the first instance.

Obviously, I wouldn't do anything re cancelling cards, rolling loans etc, UNTIL you have had confirmation from the UW or lender, of details or an idea as to why you had initially failed their credit score/underwriting procedures, and if the areas of concern highlighted may be easily addressed by you.

Depending on how experienced or savy the in-house adviser is they should be able to assist with this and try and get it pushed through.

Holly

butwick

Thank you once again Holly really helpful advice. The in house advisor wasn't at all savvy, in fact, we are dubious he has even got our figures right, because on the 2 occasions that we have been to see him now he each time miss quoted what the repayments would be for us and then rang us back to apologise that he'd made a mistake....doesn't fill us with confidence!

holly_hobby

Thats why its often better advice to go to a broker at the beginning - or take along someone with you who knows their eggs, brokers will also have the assistance of the local lender rep - who they can enlist to try and mediate with the underwriters. (especially if its a big brokerage who does or can give loads of future bus to the lender).

Anyway, you have a good idea now what your want the adviser to find out and the case you want them to plead to the U/W (if the decline was solely due to your availability to future finance).

Let me know how you get on ...

Holly

kari150

Forgive me butting in on your thread (cannt find for the life of me how to start my own lol)
Mortgage question;

Can anyone out there answer the question, which uk high street mortgage lenders/underwriters execute their credit searches based on 'live' up to date data as opposed to monthly bought data which can be out of date?

Thanks in advance

holly_hobby

The lenders will use and rely upon, the usual Credit Ref Agencies who record your finance data - so it depends when they are updated by the financial institution themselves.

You could always provide additional evidence of upto payments for underwriting consideration with your app to the lender, if you think there will be a problem with your data of some sort.

Holly

butwick

Hello everyone I just thought I'd update you on our situation after I insisted that they wrote to us with the reasons for turning us down.

Santander have said that due to their current lending criteria the underwriters won't grant us any additional borrowing as they have been basing their decision on our existing term of our mortgage (currently 11 years) and it said that before they could consider it our term would need to be increased first before they would make a decision over a longer period. We had already requested with the mortgage advisor that our term was increased slightly for affordability but it seems that this wasn't put forward to the underwriters. We know it's not advisable to increase the term and if our circumstances were different we wouldn't consider it but given that we don't want to be trapped in debt forever this seems the most sensible solution. It seems that if we increase our term now, they will consider it but it's not guaranteed. I don't want to do this unless they guarantee the additional borrowing as if they are still going to say no I don't want to increase our term for the sake of it. Does this sound unreasonable asking us to increase our term before they will look at it? Why can't they look at our affordability on the increased term and make a decision in principle based on that, if it's workable then we could agree to increase it? The branch have said that if we looked to increase our term there could be more potential to grant the further borrowing but the underwriters will not say yes or no until the term has been extended and a new application put through to them.

They are also stating that our liabilities are not joint comittments and on our credit report they are showing the same amount against each of our files. For example our current mortgage debt and the car loan (both with santander) are in joint names....they are saying they are NOT joint comittments. So what they are showing for example is that our £74k mortgage debt is showing as £74k against my husbands credit file and £74k against mine. Same with the car loan but obviously for a much smaller amount. I am bewildered how they can dispute this! The mortgage and car loan was taken out in our joint names and WITH Santander!!! So although yes of course jointly our mortgage debt is £74k or £37k EACH, they are showing £74k on both our files, so it would appear that the currently liability in respect of this debt if you looked at both credit files would be £148k, this is clearly not the case at all!! They say when I've queried this that they haven't "double counted" our debt but this isn't what is indicated in the report that the branch person showed us. Even so, how on earth can they write to say they are not joint debts when they are?!

With regards to our credit card debts they are assuming a calculation of 3% of the outstanding balance of our cards to give them a monthly figure of what we should be paying. They recognise that our actual monthly premiums to these companies may be lower but state that these are the guidelines that they enforce.

They then looked at affordability should mortgage rates rise in future, which I completely understand, however they base the interest rates at 7% to do this. Currently we are paying 0.99%, and as we'd already stated if rates were to rise dramatically we would fix before it got to that level, however, that seems to make no difference to them. They also looked at affordability based on our disposable income based on 2 adults and financially dependant child based on a national average, and this is coming out higher than what we are actually spending but again due to their lending criteria they won't budge on that.

Anyway, thats our update, soooo frustrating when this isn't the actually the reality of our situation. If anyone has got any tips based on the info' given here I'd be most grateful, otherwise, thank you for letting me vent!!

Thrugelmir

butwick wrote: »

Anyway, thats our update, soooo frustrating when this isn't the actually the reality of our situation. If anyone has got any tips based on the info' given here I'd be most grateful, otherwise, thank you for letting me vent!!

Maybe you be venting at yourselves. As you are fortunate to be on a .99% mortgage rate. So whatever your debt problems have every opportunity of addressing.

This comment struck me.

With regards to our credit card debts they are assuming a calculation of 3% of the outstanding balance of our cards to give them a monthly figure of what we should be paying. They recognise that our actual monthly premiums to these companies may be lower but state that these are the guidelines that they enforce.

This suggests you are paying the bare minimum. Something that the underwriters will have picked up on.

My advice would be to pay a visit to the Debt Free wannabe board. Analyse your expenditure budget to see where every penny is spent. As it may be a real eye opener. Help starts at home as they say.

Consolidating debt is not advisable. As it doesn't solve the root cause of the problem.

handytips

This is a classic case of you needing the advice of a good broker. With reference to the Self employed status this will make no difference to any lender as long as you can proove your income. With reference to your credit card debts and consolidating, the simple fact of the matter is this, once a card balance goes over £2.5k in most cases this becomes a lifetime loan if the min payment is all you are paying. For some to say that consolidating debt is wrong, is wrong in itself. Should you be better off on a monthly basis and are happy to put unsecured debt on to a secured basis then this is your choice an advisor can advise that you strongly consider not doing this, however if it puts you in a better position financially then consolidate it. Some lenders will insist that if you are consolidating, the solicitor dealing with the remortgage pays off the credit that you have declared to be paid off on completion. I would then strongly advise that you close down the credit cards and do not take anymore credit cards in the future. There will be plenty of lenders out there willing to lend you the required amounts, however you will lose the rate you have now. Santander are twitchy about debt consolidation. The other consideration for you would where you could keep the rate and still get the money for your extension and debt con, would be to consider a secured loan. Most secured loans will have a One months interest get out clause (early repayment charge) and when rates start to rise and you want to change your mortgage, it will in essence be easier for you to move to another lender. You have many options it is just figuring out which one is best for you. If you want a bit of advice you can contact me by clicking on my profile. Good Luck