Underwriters

stan86

Hi Guys,

Was just wondering if anybody has had this scenario and generally how do you rate our chances? What advise would you give us?

We have had a mortgage promise for several months whilst we've been scouting the market. We are first time buyers at 95% and are currently taking up an offer at Lloyds that covers legal/ solicitor fees. Generally we both have had fantastic cradit ratings, both A1's, good salaries and a deposit all sorted.

We found a house last week, and managed to place the winning bid. Going back to the bank on Friday, the underwriter is asking for a 10% deposit, even though a week earlier we had the mortgage promise for a 5 % deposit, in the price range to which we have bid.

The mortgage advisor isn't sure why the underwriter has changed the crieria, our payments out have remained the same, although two monthly contracted payments (for car insurance and phone bills) have been recently renewed... meaning searches on my profile. This has dropped my rating from an A1 to an A4 rating, which I'm guessing is the only reason why the underwriter software may have changed the criteria.

She has written to the underwriter on the recommendation that she would approve us and believes we should be give the 5%.... I have also just started a new role at work with more money, benefits etc. She won't or can't however say we are guarenteed to overturn the underwriters decision.

Has anybody had this scenario and eventually been granted the mortgage? Have we got a chance or will it boil down to my rating changing? It all sounds good with the advisor but with this all falling on the weekend, we are biting our nails worrying if we get our dream house or not!

I could possibly pay the 10% but I'd rather make the home livable and take a slightly higher rate!

Any advice would be of great help.

Chris

Thrugelmir

stan86 wrote: »

We have had a mortgage promise for several months whilst we've been scouting the market.

Lending markets constantly change. Don't take the new terms personally. They'll apply to everyone. A few months is a long time in the commercial world.

Until you make a formal application there's no guarantees.

stan86

In them months, we have had the promise renewed every 2/3 weeks as you said, because we know the market changes.

Surely the market and our circumstances haven't changed that much in the last 7-9 days since we renewed?

I'm new but, surely common sense provails in this instance?

kingstreet

Soft search DIPs.

Hard search full app.

The latter gathers more information and is prone to situations like this, where the system considers the original LTV too risky.

Find another lender, or have a broker do it for you. Presumably Lloyds chosen for the SDLT incentive?

AnotherJoe

stan86 wrote: »

I could possibly pay the 10% but I'd rather make the home livable and take a slightly higher rate!

Unless it's a squalid dump, if by liveable you mean about decorating and change the avocado suite to white or whatever, then financially you'd be much better off getting a better LTV and paying for improvements as you go

As it is, changing that avocado suite ( for example) will cost you dearly in extra interest over the next several years.. Pay as you go will also mean you woll focus on necessities rather than be tempted to splurge just because you've got some cash floating around.

Thrugelmir

stan86 wrote: »

Surely the market and our circumstances haven't changed that much in the last 7-9 days since we renewed?

Internal lending policies change overnight for any number of commercial reasons. Without there being any broader "market" event.

Did the "promise" guarantee you a 95% mortgage or simply a maximum amount up to which Lloyds would lend.