Will I pass the underwriter checks?

Scaredcat

Hello.

Long term lurker, plenty of reading though. Need an opinion or two!

After many years of trying to put my credit file right, I have finally got myself in a position to apply for a mortgage. I have no defaults, some very old late payments from 2009 and a couple of AP markers from 2009. Other than that all my accounts show up to date and in good order. No late payments or anything from 2009. No payday loans in the last 12 months, nothing late at all.

I owe a total of £10,500 on credit cards at 0% so coming down nicely.

We applied to Santander for a HTB 5% deposit on a property of £230,000.

We earn £34K(me) and £27K my partner who has a perfect credit file.

Santander did an affordability checks, and we are all on the right side that they did a credit check and AIP was given. So far so good.

We have now submitted the full forms which have gone to the underwriters. 3 payslips, last three months of bank statements, during that time only went into OD once for 1 day for £19 (authorised overdraft). No charges or anything applied.

We have a nervous few days of waiting, but based on the above - do you think this is likely to be a positive outcome?

ACG

Is it HTB equity loan or HTB mortgage guarantee?

If the latter, im surprised you have got as far as you have. Arrangement to pay, 95% mortgage and £10k worth of debt, it must be tight on affordability.

If the former, I dont have any experience of so cant comment.

What made you choose Santander?

Scaredcat

HTB mortgage guarantee. The cost to service the debt is £500 per month versus a joint income of £3700 - so why would that fail an affordability check? The cost of mortgage is £1200 - and they have checked it up to £1600 due to the tight guidelines. So we have plenty of "fat" to play with - or am I missing something?

Santander was just timing - they called me offering to reduce a mortgage - until I told them we rent and dont have a mortgage - but we were interested in a new mortgage as first time buyers.

The AP marker was 2009 and shows on Callcredit only - not Equifax

ACG

Because lenders do not usually work off what it costs to service the debt, they have a notional figure they use depending on the amount (although im not familiar with santanders stance as I do not use them much).

With regards to the mortgage, again its worked out on a standard rate, which is usually higher than hat you are actually paying (typically around 6-8%), but again not being a big user of Santander im not sure on their stance.

Is the AP marker on Experian? I dont think santander use call credit or equifax.

Also the fact you want a 95% mortgage (£11,500 deposit) and you have £10,500 worth of debt... Its like your deposit has come at the expense of using credit cards, which Santander are one of the few (if not only) who do not mind "borrowed" deposits so you might have got lucky on that front. Appreciate that the £10,500 is probably not borrowed to use as a deposit but some lenders may view it like that.

You may have fallen on your feet here and got lucky, im also assuming you must probably bank with them and so have a bit of a relationship there which again may help.

Scaredcat

I told Santander the value of what is outstanding, and they ignored what I pay and put there own calculation against each one. It showed affordability was OK.

You are dead right on the mortgage rate - 4.99% but affordability check of 8% I think. We were fine there too.

The AP marker only shows on Callcredit, not Experian anywhere.(score 999) I have not hidden it in anyway. I still have the card active where the AP is - the AP was back in 2009 so a while ago, so I was hoping that accounts for something?

I have an account where we pay our bills using that account (123 account) but no Salary get s paid in etc.

The deposit is in ISA's so that is certainly not the case of being borrowed, and can easily be proved I guess if required.

Am I looking more positive in your opinion?

ACG

It does sound more positive, but I am still surprised its got as far as it has.

I think the AP marker not showing up is a big plus point though.

Scaredcat

OK - now I am nervous again...! Well I guess there is nothing I can do but wait for the decision to come back from the underwriters.

As a MA - do you think we could immediately apply via a MA and be successful based on the above? If we failed Santander underwriters check that is.

ACG

Dont be nervous, I dont use Santander a lot so im not that up to speed with their criteria and processes etc. They just never really appear when doing my research so we never seem to really cross paths.

Someone like kingstreet on here will probably use them a lot more than I do.

If they decline you, I dont doubt for a minute there will be options but without running the affordability dont hold me to it. I do think affordability (purely because of how lenders calculate it, nothing to do with you making your monthly repayments as things stand) could be tight but it will depend on the lender/term and everything else... hows that for sitting on the fence?

Scaredcat

Ironically they just called saying they are querying cards i did not declare as I show payments on my bank statement of £0.02p. I explained it was trailing interest, and cards are zero. and they said thats fine.

I asked everything else OK - she said thats all they have asked for so - so far so good.....

Affordability is truly fine - well within our budget - it was my historical data that is worrying me.

Appreciate the feedback - its opinion but you are in the know....I am not.

Thrugelmir

Scaredcat wrote: »

The deposit is in ISA's so that is certainly not the case of being borrowed, and can easily be proved I guess if required.

Can you? You currently owe £10,500 on 0% credit cards. Doesn't take much to work out that you've put cash into the ISA rather than repay the credit card debt.

Scaredcat

Thrugelmir wrote: »

Can you? You currently owe £10,500 on 0% credit cards. Doesn't take much to work out that you've put cash into the ISA rather than repay the credit card debt.

Yes - the ISA are in my partners name. The credit card transfers are in mine. The time differences of the credit start date show no overlap.

The ISA were started way before the credit card agreements.

Doesn't take much to work out that you've put cash into the ISA rather than repay the credit card debt

Assumptions make an !!! of "u-m-e"