Underwriters

marksoton

uncreative wrote: »

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.

Fair play. But i think calling a salary that's 4x the national average "reasonable" is a stretch.

And not indicative of someone who should worry about the underwriting process.

uncreative

Thrugelmir wrote: »

Your deposit perhaps doesn't immediately suggest that.

it might not immediately suggest that but we have 3 properties in a BTL limited company that has circa £125k of "equity" in it which explains where some of our cash goes. However, frugal is certainly not how I would describe ourselves over the last 3 years. We had been spending like money was going out of fashion. Since February this year when we changed our ways we have saved up £25k.

Perhaps frugal was the wrong choice of words. Thanks for picking me up on that.

Does "under-ambitious" suit (granted it isnt actually a word)

marksoton

uncreative wrote: »

it might not immediately suggest that but we have 3 properties in a BTL limited company that has circa £125k of "equity" in it which explains where some of our cash goes. However, frugal is certainly not how I would describe ourselves over the last 3 years. We had been spending like money was going out of fashion. Since February this year when we changed our ways we have saved up £25k.

Perhaps frugal was the wrong choice of words. Thanks for picking me up on that.

Does "under-ambitious" suit (granted it isnt actually a word)

Again, with all due respect why are you concerned about underwriters?

Your salary and portfolio should mean you're hardly an amateur at this?

It just doesn't make sense to me...

uncreative

We havent had a residential mortgage for a few years. The last one we applied for 10 years ago was done and dusted in one meeting that lasted 2 hours. We sold up a few years ago and rented as I moved about a bit for my job doing secondments.

3 BTL mortgages through a ltd company that were practically same day decisions too, with a 30% deposit on each.

So I apply for a residential mortgage nearly 3 weeks ago thinking that surely I am one of the most open and shut cases in the whole of Britain due to background, salary, income multiple etc.. etc.. and hear nothing really until the other day when i am told its going to an underwriter??

To quote you "It just doesnt make sense to me.."

So i asked on here about why an application would a) take so long and b) go to an underwriter as I have not been through such a process in a while.

Turns out all is well and its just a case of backlog, all approved etc.. so thats good.

Thrugelmir

uncreative wrote: »

it might not immediately suggest that but we have 3 properties in a BTL limited company that has circa £125k of "equity" in it which explains where some of our cash goes.

Now there's BTL's in the picture , also I has become we. Not picking up on you . If the underwriters were drip feed in a similar manner. Then yes the process may well seem laborious to you.

minimike2

The thing I find is that potential mortgage applicants still have the sense of entitlement of their position being a good one for a mortgage lender, that the lender should just give them what they want because they feel they can pay it. It is almost like 2008 didn't happen in some minds (I am not suggesting you fall fully into this category OP, but more so what's to follow...)

When you apply for a mortgage, regardless of your own view of your position, you represent a risk. People borrow tens of, hundreds of and millions of pounds. Lenders have a responsibility not only to those taking the risk (themselves and their shareholders / members) to make good lending decisions, but also to the person borrowing the money to not put them in an overly risky financial position.

It 'aint 2008. Gone are the days you can rock up at the bank they they say "how much do you want then.... press hard three copies".

You want to make an application to borrow tens / hundreds of thousands of pounds in a post melt-down environment where regulation is tight and investors want sound lending decisions. It should be expected that it is just not as simple as saying "I will have that much please...." like it was 10 years ago.

I think the younger generation are actually more on the ball with this and have it in their minds they will get everything all prepared and look to make applications for sensible amounts. Unfortunately the baby boomer generation have been programmed (by the banks / society) to the sense of entitlement that they should just get it because they feel they can / should have it, often saying "you don't need me to provide XYZ you can see i've always paid my bills on time", when you have told them they must provide XYZ but they thought they wouldn't bother.

I am of course making generalisations but on the whole this is how I find it. I love dealing with the younger generation who appreciate that what you are telling them is what you need and to remember that they are not "entitled" to a mortgage, but that they should think realistically and borrow within their means in order to get a positive lending decision.


Anyway, that's enough rambling from me for one night!

uncreative

Thrugelmir wrote: »

Now there's BTL's in the picture , also I has become we. Not picking up on you . If the underwriters were drip feed in a similar manner. Then yes the process may well seem laborious to you.

Facepalm.....