First time buyer. Mortgage audit?

Louisecbatt

Me and boyfriend have found a house that we want to buy. We had our mortgage in principle, then our broker collected all the relevant paperwork from us to then apply for the mortgage on this particular property. All went through no problem and both of our finances were cleared so a survey was booked and all seemed to be going quite smoothly.

Until yesterday we get a message from our broker to say that the survey has been postponed as our case has been taken to audit? From what he said its basically a bit like an extra security check they do at the airport to just make sure but I am sick to the stomach now as i am so worried they are going to turn round and refuse us the mortgage.

The stress is horrible, it's just crazy that so many people have the control over our future and I'm struggling to understand.
Has anyone else experienced this? And if so what happened? How long did you have to wait to hear?
Thanks in advance guys!

Bacon_Sandwich

Yes. This happened to us last summer.

Still waiting for it to be resolved.

Just kidding. It took about a week or so to sort. To this day we don't know why our application was 'audited', or what that process involved. In the grand scheme of things it was a very minor blip along the way. From what we've gleaned since, mortgage lenders do pull a number of applications 'to one side' for auditing, probably as part of their own quality procedure. If you've already passed the credit checks and meet the lending criteria, as it seems you have, then probably highly unlikely that you'll encounter a problem

Louisecbatt

Thank you for your reply, you've really reassured me! I hope that it will be a small blip as you say.

Thanks again!

Bossypants

Bacon_Sandwich wrote: »

To this day we don't know why our application was 'audited', or what that process involved. In the grand scheme of things it was a very minor blip along the way. From what we've gleaned since, mortgage lenders do pull a number of applications 'to one side' for auditing, probably as part of their own quality procedure. If you've already passed the credit checks and meet the lending criteria, as it seems you have, then probably highly unlikely that you'll encounter a problem

This is it exactly. There will be an internal quality assurance process which requires a certain number of cases be selected per month to be checked, in order to ensure that the applications were correctly processed. Depending on the lender, there might be some selection criteria (for example, more of the sample coming from the high LTV population than the low), but your cases within those populations will have been selected at random. If the agent who processed your case forgot to do something, then they may come back to you for the missing information, but there's no reason to assume anything is wrong just because your file has been selected.

hazyjo

Louisecbatt wrote: »

The stress is horrible, it's just crazy that so many people have the control over our future and I'm struggling to understand.

Try to see it that they're in the same boat - they are lending money so really the risk is with them that you'll pay it back! I don't blame them for wanting to run a few late checks on a number of cases. They want to make sure you (and whatever other %) are still good for the money!