Woolwich Re-mortgage Question

redrosegirlie

I applied for a re-mortgage for equity release with our current lender the Woolwich on the 22nd April after a succesful DIP. (I went direct not via a broker).

I am separating from my husband and buying him out of the house so I needed to borrow more than what we currently owe.

The Woolwich did a full credit check via Experian on the day I applied.

A valuation was done by E-Surv on the 13th of May and I was informed that as long as that was satisfactory I would get an offer shortly after that. The valuation came in at £15,000 less than my valuation however it is still at 79% LTV.

Since the valuation the underwriters have required more info on 3 separate occasions thus delaying the whole thing:

1) Is my husband agreeing to come off the mortgage (he has already signed their form saying he is happy with this).

2) Can I send in my February pay slip (Despite them seeing March and April ones).

3) I didn't disclose a small Barclays loan that has shown up on their credit search (This is a loan in my husband's name only where I am not responsible at all for the repayments and it doesn't show up on my credit report when I checked with Experian).

I am now wondering if after everything they are going to turn me down. Do they often refuse a mortgage at this stage? How long after a valuation should it take them to issue an offer?

Thanks

kingstreet

Ok. Let's straighten up a bit of terminology first.

You aren't remortgaging. That's when you move your mortgage from one lender to another. You are carrying out a transfer of equity to remove your ex from the mortgage and the ownership and you are taking additional borrowing to buy him out.

When you do this, your lender vets you as it would any other applicant for a new mortgage. It is vetting you for the existing amount, to see if you can afford it alone, as well as the additional borrowing you need.

A lender's status requirements varies, based on loan to value and perhaps on individual credit score (the lender's not some daft one made up by a credit reference agency). They can ask for three months' payslips, P60, even an employer's reference.

Without knowing the circumstances, it's impossible to say if you may have got a better deal and better service by remortgaging to a new lender. Woolwich is not great, IMHO on both fronts.

Finally, it's also impossible to say if you will be successful. I tend to think if they haven't turned you down so far, they won't now. As the property was downvalued, can you still get the product you applied for, or are you having to change because you've now moved into the 75% - 80% loan to value band?

redrosegirlie

Hi Kingstreet,

Thanks for replying.

I chose to try and stay with the woolwich because I can port my current deal which is 1.19% above BBR so I felt that that was going to be the cheapest and easiest option. I can still get the product I applied for as it goes up to 80% and when I went through the DIP process I could have borrowed more than I am asking for based on my salary.

I had already supplied them with payslips and bank statements 2 days after I had applied which is why I am irritated that after the underwriting and valuation they are asking for more. I just feel that one hand doesn't know what the other has done and they are delaying a decision.

i wanted to know whether the woolwich have a track record for turning people down following a valuation which although has been down valued is still classed as satisfactory.

Thanks