Underwriters

uncreative

Hopefully a quick question. We found out that our mortgage application is with the "underwriter". Is this normal?

My past experience with underwriters (insurance) is there is a borderline case or there is a problem requiring specialist intervention and decision making.

Is that the case with mortgages or is it just part of the process?

thanks

Malmo

All full mortgage applications require underwriting to assess risk and affordability.

uncreative

ok thanks Malmo, appreciate the answer.

minimike2

Malmo wrote: »

All full mortgage applications require underwriting to assess risk and affordability.

True, but not all "underwriting" is performed by a human.

It sounds from the OP that it has been placed in front of a human.

Who is the lender? Some lenders "humanly" underwrite all cases. Some don't go in front of a human where the algorithms and scoring systems can determine the risk doesn't require human intervention.

amnblog

minimike2 wrote: »

True, but not all "underwriting" is performed by a human

You are right there Mike. We brokers speak to these machines every week.

uncreative

The lender is Natwest/RBS

I actually got a call from the underwriter today. Was on the phone for about 30 mins, asking questions about all aspects of the application. Then, clickety clickety click on a keyboard and - said good news your mortgage application has been agreed subject to valuation??!!

The saga continues. Never in my life has there been such a painstaking process.

Thrugelmir

uncreative wrote: »

Never in my life has there been such a painstaking process.

Process is in place to protect the lender. Much depends on the status and circumstances of the applicant.

uncreative

Thrugelmir wrote: »

Process is in place to protect the lender. Much depends on the status and circumstances of the applicant.

Agreed, but I am trying to borrow 1.3x salary with a 15% deposit, no defaults or missed payments or any issues, no debt at all when they gave me a DIP for £440k. In the last 6 years I have settled 6 non mail order loans, no wonga or any of that stuff.

Goodness knows what the process is like for someone trying to borrow 4 times their salary with credit card debt and a bit of a potted credit history.

marksoton

uncreative wrote: »

Agreed, but I am trying to borrow 1.3x salary with a 15% deposit, no defaults or missed payments or any issues, no debt at all when they gave me a DIP for £440k. In the last 6 years I have settled 6 non mail order loans, no wonga or any of that stuff.

Goodness knows what the process is like for someone trying to borrow 4 times their salary with credit card debt and a bit of a potted credit history.

I'm confused. You got a DIP for £440K on 1.3x salary and only a 15% deposit.

That's a big salary you have there, and not a lot of deposit considering. Am i missing something..?

uncreative

marksoton wrote: »

I'm confused. You got a DIP for £440K on 1.3x salary and only a 15% deposit.

That's a big salary you have there, and not a lot of deposit considering. Am i missing something..?

I got a DIP of £440k because I have a reasonable (£108k) salary but I only wanted to borrow £140k.

I actually think the transaction was delayed as it wasnt believed that someone could be so frugal. They must think I am trying to scam a buy to let out of it.

Thrugelmir

uncreative wrote: »

I actually think the transaction was delayed as it wasnt believed that someone could be so frugal.

Your deposit perhaps doesn't immediately suggest that.