Mortgage application with Senior Underwriter?

shapecontractor

Holly thank you very much for explaining that particularly about the rolling credit and high available limits. Not sure about speaking to the underwriter, that doesn't appear to be an option with NatWest but I have referred it back to them again just for clarification of their line of unsecured debt? I'll put something together in writing in light of your advise to try to offer an explanation of what monies will be used for what and how we plan to reduce debt over future, although I'm not sure if it will be worth the effort?

shapecontractor

Thrugelmir, yes the plan's to clear the pers loan and the visa. so reducing her committments.

Thrugelmir

shapecontractor wrote: »

although I'm not sure if it will be worth the effort?

Most likely not. As the underwriters themselves are governed and work within the criteria set by the risk management team.

holly_hobby

shapecontractor wrote: »

Holly thank you very much for explaining that particularly about the rolling credit and high available limits. Not sure about speaking to the underwriter, that doesn't appear to be an option with NatWest but I have referred it back to them again just for clarification of their line of unsecured debt? I'll put something together in writing in light of your advise to try to offer an explanation of what monies will be used for what and how we plan to reduce debt over future, although I'm not sure if it will be worth the effort?

Underwriters do have their own lending mandates at differing levels of experience/position, which means that they may make an individual sign off (within their mandate) for a case that is in a grey area (whilst remaining within std lending and risk management paramaters).

So it certainly will not do you any harm at all - as it will demonstrate your understanding of the situation, and a financial maturity and responsibility to the UW.

Their worry is if it all goes pete tong, the don't want to have to go the possession route with this - so keep that in mind when discussing this with them and presenting any case.

Its not an out and out decline, which is actually a positive, they have tried to tell you how to get it through, but cant be seen to guide you - its a subtle line to walk - and you can't beat a one to one chat with an UW so push for that (in a nice way) and see where that takes you & if they will give you an indication as to how much they consider you are over exposed re the US elements discussed.

Hope to help

Holly

shapecontractor

Thank you Holly and to all who've taken time to offer great advice, it has helped us understand where the UWs are coming from and maybe we can move forward. If we can't immediately, then at least we're now in a position to do something positive about changing our situation in future.

Gentoo365

shapecontractor wrote: »

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?

This is the problem with 'shadow limits' and affordability calculations. Lenders do not want people reverse engineering their formulas. They also don't want to be actively telling people how to game the system.

Reading between the lines it seems that they want you to appeal against the decision, by offering to reduce the debt, then the appeal will go to someone who has more leeway in terms of mandate. If you cannot clear it all, you could include in your appeal a breakdown of your expected budget showing that you plan to reduce the debt over time. i.e. show that you are financially literate and therefore a lower risk than it may look from a simple percentage calculation.

shapecontractor

Thnks Gentoo that's reassuring to know, we can only try and that's what I'll pursue over the next few days

holly_hobby

Don't leave us on tender hooks ... do come back and let us know how you got on ...

Fingers and toes crossed for you x

Holly

Simon_gloster

shapecontractor wrote: »

Thnks Gentoo that's reassuring to know, we can only try and that's what I'll pursue over the next few days

Your intentions may be genuine to reduce the debt and I applaud you for this.

Be warned, I used to also underwrite for a biggie lender, and should you agree to reduce the dwbt prior to completion, my risk mandate would say to condition the offer that this debt had reduced and got the solicitor to confirm this.

I would also, as your case is under my radar, perform a credit search to make sure you had not borrowed to reduce the current debt.

Complaining is an utter waste of time just because you dont fit their current rules.

By the way, I would have done an affordability calculation for you to decide the best way forward for 'our customers' and would have called you to help you.

Maybe Natwest should take a leaf out of x books who I used to work for.

Let us know the outcome.

holly_hobby

Ah thats a bit harsh, OP's not complaining, he just couldn't understand why the NW wouldn't tell him which loan/s and/or how much he needed to reduce his liabilities to - which would be a reasonable q from any layman in the circs. He now understand how the process works.

Naturally, I'm sure he will appreciate that a condition of the offer will be that confirmation by the conveyencer will be reqd, re the completion of agreed actions.

Great to know we have an ex-underwriter on board ... you are now our official "wonder what an uw will make of it " oracle ... get ready to be bombarded !!!

H