random mortgage audit

2bsmart

A little info needed, we were told last week our mortgage was offered subject to valuation, valuation took place monday, were told yesterday morning valuation was satisfactory. However, i phoned bank this morning and was told offer was being processed, phoned again just now and have been told it was pulled for random audit. The guy was really good, he phoned auditors who apparently said they were finished with it and it was back to underwriters.

Can anyone explain the random audit thing? And also why does it have to go back to underwriters? what are underwriters doing now as its already been passed them?

Our vendors solicitor is getting twitchy but nothing we can do, right?

thanks im a little stressed

Conrad

Really common now, and part and parcel of steps all lenders are obliged to take.

I now assume all cases will be pulled for audit.
Note this can happen after exchange of contracts and prior to completion which is why I now advise all clients exchange and complete on same day or with as little interim as possible. Bad brokers of course don't worry about such things - but I know of two who now face massive litigation claims for not pointing out such a simple thing and getting clients signed understanding of this.

2bsmart

any idea how long its likely to take? Also why does it have to go back to underwriters? We havent been asked for further information yet. We both bank with our mortgage application company so all our info is in front of them i guess.

Thrugelmir

2bsmart wrote: »

Also why does it have to go back to underwriters?

Underwriting team are responsible for issuing formal mortgage offer.

kingstreet

Cases are audited to check the documentation matches the answers given on the application.

Halifax routinely samples 8.5%, or 1 in 12, of its cases.

2bsmart

Thanks
Guess then it's a good sign it's gone to underwriters

As we bank with them we haven't provided any documentation so guess they are checking it out with our bank accounts. My husband salary is paid into his account and as these are our only accounts it's easy to see. Oh well more waiting, will give them a call at close of business today. Fingers crossed it's been a long waiting process.
Thanks for your input though much appreciated.

2bsmart

We got our mortgage offer through today and we were able to put an offer in our the house.
Thanks for advice and support

kingstreet

Is this in Scotland?