Mortgage application taking forever....

Eve4ever

Conrad wrote: »

The public cheer when Vince Cable says we need a return to good old fashioned cautious lending, but when it come to thier turn all of a sudden they realise thier cheering was perhaps misplaced.

Clients always think lenders requests are over the top / irrelevant, but thats because the public do not understand risk.

One small detail missed by a lender could be the very thing that one day somehow leads to a client claiming mis selling. Look around this very board for proof of this.

All I have to say is I'm glad you aren't my advisor as you seem to have very little understanding or empathy for your customers. 3 months to process an application is ridiculous in light of today's electronic technology. I put my application in on Tuesday, if I don't have a decision in principal so I can get the surveyor out in the next 10 days, my entire deal with the vendor could collapse and I will have to start from scratch. It has taken 6 months to find the right property due to the lack of choice out there so perhaps if lenders actually want to make a living, maybe they should sharpen up their act?

Just a thought..

gazfocus

Eve4ever wrote: »

All I have to say is I'm glad you aren't my advisor as you seem to have very little understanding or empathy for your customers. 3 months to process an application is ridiculous in light of today's electronic technology. I put my application in on Tuesday, if I don't have a decision in principal so I can get the surveyor out in the next 10 days, my entire deal with the vendor could collapse and I will have to start from scratch. It has taken 6 months to find the right property due to the lack of choice out there so perhaps if lenders actually want to make a living, maybe they should sharpen up their act?

Just a thought..

To be fair, a decision in principle is usually instand (1-2 days at most). Our AIP was referred to the underwriters and we still had a decision within 24 hours.

Getting a decision in principle isn't when a valuation typically gets instructed. The mortgage lender will be the one to book a valuation and that will be done after an initial assessment of your full mortgage application.

paulmapp8306

Indeed.

Put my ap in, and got an AIP inside 2 hours. Send my MA the documents she needed (by post as Im in NI), and the full app went in a week after the initial. That was a Thursday, and on the Monday they requested proof of rent being paid as i already said.

full app was agreed subject to valuation this Wednesday (though that was 8 days after they had the info they wanted) - and the surveyor went in today. Hoping for my formal mortgage offer by next friday. THEN ill start the searches.

Gentoo365

Conrad wrote: »

The public cheer when Vince Cable says we need a return to good old fashioned cautious lending, but when it come to thier turn all of a sudden they realise thier cheering was perhaps misplaced.

Clients always think lenders requests are over the top / irrelevant, but thats because the public do not understand risk.

One small detail missed by a lender could be the very thing that one day somehow leads to a client claiming mis selling. Look around this very board for proof of this.

I agree with the sentiment of your post. It is absolutely correct that lenders do the required checks. If this means that fewer people can lend (until ready) then so be it.

The problem is when it takes so long for a decision to be made, and then the application is declined based on information that was known at the start of the process. In addition the lenders pretty much all give out 'Agreement in Principle' and then decline later, based on information supplied when the agreement was requested. The upshot being that a potential buyer has to get an offer accepted and start accruing legal fees before the 'real' affordability decision is made.

If I had any say in it the process would be as follows:


Stage 1) Initial questions asked prior to KFI/Quote to determine rejections due to policy (e.g. buy to let, properties above shops, basic income multiples and rough ltv)

Stage 2) Full affordability assessment prior to AIP/DIP such that once the AIP is given the chance of failing on affordability is reduced. No proof required at this stage.

Stage 3) After offer accepted fixed rate booked, fee taken and documentation sent. Only possible decline can be due to borrower lying, missing out information or problems with property/surveys.

I can see why this does not happen though. The bank does not want to waste money assessing affordability until the last minute, as it means underwriters etc. are only working on cases where the mortgage is likely to be taken up.

gazfocus

Don't forget though that many mortgage lenders charge application fees upfront and they get this fee whether a mortgage is approved or not so they're not going to want to make AIP/DIP's more reliable because then they wouldn't get people paying the fees without the lender having to fork out the thousands of pounds.

Clearlier

Nationwide are saying that they will look at it on Tuesday and communicate a decision on Wednesday. I've asked if we couldn't push for Monday given that the delay was due to their error. Am not expecting anything though. Structural engineer will be instructed the minute we get approval (or not if we don't!).

I've spoken to the EA who is supportive but in the end has to follow his clients instructions. My biggest concern is that a cash buyer will appear on the scene if it does go back on the market. It's not that likely but we do live in an area thats popular with retirees and unlike large parts of the country the property market is not in the doldrums here. It's not London but properties at the right price go quickly.

Clearlier

So Wednesday came and we were told Thursday, Thursday came and we were told Friday, it's late on the Friday afternoon of a bank holiday weekend and we still haven't heard. Is this the way things usually work?

We've had the mortgage adviser talk to the EA to explain the situation which helped confirm what we were telling the EA (no way we could have credibility after so many missed deadlines). Now the vendors are asking their solicitor to phone our solicitor to say that they want to put it back on the market..., no longer sure what the vendors are playing at to be honest. Same with Nationwide. Even if I objectively know this is ridiculous it all feels like a bit of a nightmare at the moment.

Clearlier

It finally came through today. Even though there are still a few other things to get done it's a relief to have this particular part done.

skierskier12

Well done for getting your offer through, it is such a relief.

There are so many people involved in the process that it is easy to understand why things can be delayed. Brokers not sending packages to the standards of the lenders, documentation incomplete, documentation difficult to read, one forgotten signature , and when everything arrives at the lenders' offices, more can go wrong , for example, references from various agencies not coming back as soon as wanted.
Some lenders ( not many but I know of at least one now ) still process everything manually and not electronically, this is of course a reason for more delays, and some also take between 3-5 days to process post received.

I know all of this because I have just had experience with my current buyer. His offer took 8 weeks between application to offer getting to him and another week to arrive at the solicitor's. I was as worried as him really, and found out that part of the delay was due to the broker who had sent documentation to the wrong place.
Result= 3 weeks lost, between post arriving, staying on someone's desk, being re-sent, arriving, sitting again on someone's desk, being processed, then joke= the application took so so long that additional documents had to be requested again because the ones that had been travelling around were not up to date ( bank statements )
Funny ? not so much .... but it did happen.

And now there is another story ( another thread ) but the solicitor is not happy with the wording of it, so may be declining it... after all this time .....
hey ho !:rotfl:

bobsyourteapots

billybear1 wrote: »

I check up on people daily, then again I have been waiting over 3 months for my application to go through. You state people not understanding risk...? One of the hold ups I have had is an indemnity policy against my Grandmothers gifted deposit in case she goes bankrupt. She has owned her own home for over 40 years and has vast sums of money in the bank. Further to this, she has written a letter and signed it stating it is a gift and she has no intention of putting any charge on the house. Then the solicitor acting on behalf of the lender is delaying exchange due to receiving a copy of this letter from my solicitor, that has not been signed in ink!!

Fair enough, I may not be a risk manager, but surely these requests are a little over the top. My solicitor even stated they have never dealt with such extreme requests!

its hardly extreme. a gift letter is standard for the lender to make sure they are the first charge and won't at some point have an issue when someone tries to claim their money back out of the house. If I put in £5000 in a house worth £80k then in 5 years time the house price went up to something stupid like £200k I definitely would want my share back