Meeting to go over mortgage offer - normal?

geoham

I'm a first time buyer, after renting for many years. I'm finding the process of getting a mortgage pretty drawn out, compared to what a family member is going through. FYI - I'm in Scotland. I’m in permanent full time employment, zero missed/late payments on credit file ever. Credit commitments are a car-loan and credit card (well below 50% of limit) – both with the bank I applied to. I saw on the screen at my bank (Bank of Scotland) that I have an A3 credit rating.

I made my mortgage application three weeks ago - I went in to the bank for this, and the appointment lasted 2 hours. It felt like a Gestapo interrogation!

I was back and forth a few times via telephone the week after this. In particular, I didn’t declare my student loan (income contingent and deducted from salary) as a credit commitment - so they insisted I took my mortgage over 30 years rather than the 17 in the key facts illustration.

I did get quite stroppy, (the 17 year mortgage was already well below what I’ve been paying in rent for 8 years!), so the advisor spoke to her manager who in turn discussed with the underwriter team and they agreed they would approve a 20 year term. This was ten days ago. She also told me that my valuation had come back ok.

From my perspective – the valuation was good, and the underwriter said they’d approve – surely an offer would be with me soon?

After chasing her, she eventually got back to me yesterday and confirmed they can offer me a mortgage. I’ve now to go back to the branch tomorrow to ‘go over the offer’, and to allow 90 minutes for the appointment. After already sitting for 2 hours (with every word of the KFI verbally read to me!) – the second meeting seems excessive.

Is such a second meeting normal? What should I expect? Do the timescales I've described seem normal?

libf

Next time avoid this by going through a broker instead of direct to the bank.

Thrugelmir

Your opinion of yourself or your own credit rating has no bearing. As the bank is lending you the money. Therefore if you want to conduct business with them it'll be on their terms. Lenders have regulatory responsibilities. So their internal policies will reflect this. Your mortgage application will follow due process.

TrickyDicky101

You should have accepted the 30y term and made up the difference to 17y with overpayments. Much more flexible option.

geoham

Thanks for your responses so far, but to be clear, I'm mostly keen on understanding the need for a 90 minute appointment to go over the offer - which the bank have stated they are now able to make me.

pollyanna24

I don't know the ins and outs of your situation, but in my situation, I went through everything on the phone and got a decision in principle.

I then had to have a 3 hour appointment in branch in order to start the application. This turned out to be closer to 4 hours. I was asked about pretty much every aspect of my life.

And this was for a remortgage with additional borrowing where I own 40% of the house, so just go with it. They are lending you money and you need them more than they need you at this particular point in time. No point getting stroppy with them!

geoham

I'd done my AIP online before the appointment. I was expecting a long first appointment, but the second appointment to go over the offer was unexpected. I thought they would typically just send the offer to my solicitor and I?

nidO

FWIW, the "go over the offer" appointment doesn't seem normal to me.

Between myself and my partner in the past couple of years we've had new mortgage products with Nationwide, RBS and Santander (all direct), and there's never been any kind of followup meeting involved at the offer stage, the offer paperwork has just arrived through the post, job done.

kingstreet

Insurance sales meeting would be my guess.

amnblog

Banks all have procedures for dealing direct with borrowers on mortgage cases. They are designed to:

Assess the Lending effectively
Manage the regulatory and compliance function
Enable them to work with the experience and qualification of the staff they have available
Make additional sales of items such as insurance
All in a manner that is profitable for them

A borrower deciding they do not want to 'play the game' is a problem for the staff member involved, their management, and the Bank itself as your 'round peg' has to fit into their 'square hole'. Making exceptions is not in the programme.

90 mins is the stated allocated time to cover all the points they want to cover. If you are not prepared to allocate that time, they may well not offer, as to 'run off track' leaves them exposed.

Banks spend hundreds of millions evaluating and revamping the customer experience but they are always looking from their side out.

geoham

Insurance sales meeting makes sense to me!


She tried pushing it a wee bit at the first meeting, and was quite insistent the life & illness cover provided by employer wouldn't be sufficient - despite it being very comprehensive. Their buildings & contents 'quick quote' was more than double the best quote online.


I'll practice saying 'not interested' tonight!