Full Underwriting - what is involved?

plumfin

Hi all, my mortgage is about to go through the underwriting process, can anyone tell me what this means? My financial advisor has my bank statements, pay slips etc, proof of ID. She has advised it will take 3 weeks or so, but I am not sure what "it" is?

thanks

Dave_Ham

Unfortunately that is like me asking how fast is your car, as clearly this will depend on what car you have.

If you want to share the lender, can give you more insight into the process. 3 weeks sounds extreme so manual underwriting lender or adverse credit history?

ACG

"It" is the underwriting process.
The process involves an underwriter sitting down with your application form and supporting documentation and either accepting/declining the application or asking for further information.

plumfin

It is a manual process in this case. A good history in the last 12 months, but a few late payments and arrangements to pay in the 2 years prior to that. Lender is Kensington. I had a few issues last week, culminating in them putting me down as a first time buyer and only offering 80% LTV. They then called back to tell me a senior underwriter had re-assessed and could offer me a 84% LTV as I was borderline. I was over the moon that they did this, and I hope this means they have already looked at my case in quite some depth in order to get to this offer, but I am also naturally pessimistic on these things. I feel very out of control , as most do in this situation I assume.

Dave_Ham

I would imagine this potentially is your broker telling you porkies, as your buyer status does not carry that significance.

We use Kensington a fair bit although they have become harder to deal with of late. They are not overly concerned with the stuff outside of 2 years, unless you are still paying regularly on any of the old defaults etc.

They will look through your last 3 months bank statements and identify anything and I mean anything going out of your account. They will get a landlord reference for the last 2 years and any small arrears is likely to kick it out.

Deposit is checked heavily and if gifted will want statements from person gifting, ID and gift letter

plumfin

My landlord will be fine, never any arrears at all. I have already been asked about the deposit and am arranging the statements this week.

All cards and accounts are up to date and well within limits.

How long would you expect this to take? thanks

plumfin

Sorry, realised you had already said you couldn't answer that! I am extremely nervous on this whole matter and can't envisage feeling this way for the next 3 weeks.

Dave_Ham

It depends what stage you are up to, typically they take the £100 and then within 5 working days you get a shopping list of about 5-6 points.

We usually know what these will be, have the documents and get them to the lender immediately.

You will then wait another 5 working days and get the questions, if in the meantime the valuation has been instructed then this is a positive sign.

After this there is a few dotting i's etc. and then push on for the offer.

There are a fair few things on both applicants and property that the lender do not like and their flexibility on credit file understandably does not run through the entire application process.

Lean on your broker and hope they use this lender a fair bit as otherwise there could be some own goals.

Fingers crossed

plumfin

Ok Dave, thanks for the advice. I will try to sleep tonight and talk to my broker tomorrow. The app went in Friday afternoon. Many thanks, as you say, crossing all fingers and toes.

Dave_Ham

You definitely need to take a breather then and your broker is definitely chatting rubbish, as they would never have looked at it that quickly. Does not bode well for the rest of the communication/process.

You will probably be set to receive significant updates on and around a Friday each week, which can be good or bad for the weekend depending upon the content.

Kensington are a fair lender you can talk with, so try not to worry too much