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Ask me anything.......I'm a Mortgage Underwriter......

sian-tiffany
Page 7 of 9 (126 items) First< Previous56789Next >
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  • Re: Ask me anything.......I'm a Mortgage Underwriter......

    London_Han:

    Hi there,

    Many thanks for such a reassuring thread!

    I have a bit of a complicated worry about our current mortgage application. Basically, when we applied for the mortgage a couple of months ago I was not paying my student loan back, as I had only graduated in the same tax year (so obviously I put £0 in the "student loan repayments" box). However, as we're now in the new tax year I ended up paying £9 back in April. The thing is, my income varies by up to £200 per month. Around 8 months out of the year, I won't be earning enough to pay my loan back. The other months the repayments should never exceed £10. On the application form I was told to put my average earnings, which I did - and at the average, the student loan is still £0. As it happens, the student loan is only £5000, and I have £6000 in a savings account so could technically pay it back if I wanted - I just like having it there in case I need it. I did also tell the mortgage advisor that I had a loan, but she said that unless I was paying it back then not to worry about it. I am also coming out with MORE net income now because of the new tax threshold, which will still be the case even in months where I have to repay the loan.

    Now, the mortgage offer is all in place and the contracts have been exchanged, we are due to complete in 2 weeks. I am just really starting to panic in case another payslip is required (if our application was audited for example), as it would now show that I have started paying back the loan, and then the offer could be withdrawn. I know that worrying over £9 a month sounds ridiculous, but I used the mortgage calculator on the website and it made a £3000 difference to what we could borrow (and we're borrowing the maximum we're allowed...). Is this likely to happen?

    I hope that makes sense, I know it's a bit complicated!

    Any advice would be greatly appreciated x

    Hi, sorry about the delay - been a mega busy week. Please don't worry, there shouldn't be a problem. In fact I happened to offered a case last week that had the same situation as you had just described. The person in question didn't pay a student loan as they were under the threshold but got a bonus one month so paid a small amount. As you have exchanged and are ready to complete it would be really shitty of your lender to do that. In fact I am 99.999999999999% they wouldn't. Good luck with the move!



    On the Old Married Bench since 18th May 2012

    Full wedding report at : http://www.hitched.co.uk/chat/forums/t/316910.aspx?PageIndex=1

  • Re: Ask me anything.......I'm a Mortgage Underwriter......

    CHLOE_T:

    Hope you can help. We are first time buyers & looking at 70% LTV. Have not had an agreement in principle yet but should be fine given online calculators. My partner earns more than me but has just taken on an assignment with work with a 30 per cent pay rise for one year (can go back to previous fixed full-term job at end). Would his salary be the previous fixed rate when you decide eligibility? Also because of the assignment they made some underpayments then overpayments on recent payslips which show a an excess then "loan repayment" to recover the overpayment. Could this complicate things? Lastly, we are very careful with our money but have paid on credit cards simply to maximise interest on savings account; however these are always paid in full at the end of the month - would these be still classed as debt?

    The product fees are high on mortgages we are looking for so want to make sure we're doing ther ight thing. much appreciated :)

    Hi, firstly in relation to your income I suspect that your lender will write of for an employment reference to verify the current pay situation and what is likely to happen to it in the next few months. That way the lender can have a clear picture. But the situation have described seems fine, it all depends on how long the assignment is as if it is indefinite they will take the higher salary but if it is only for a year then they will use the lower as the higher salary is not a long term thing.

    Credit cards are always classed as debt but in order to get a good score you need to have the debt. You have done the right thing here as long as you clear them each month (which you are).On your AIP as long as you declared you will repay any credit card debt on or prior to completion they will not be entered into affordability. I don't see a problem here.



    On the Old Married Bench since 18th May 2012

    Full wedding report at : http://www.hitched.co.uk/chat/forums/t/316910.aspx?PageIndex=1

  • Re: Ask me anything.......I'm a Mortgage Underwriter......

    Thanks for a very quick reply. If we do go on my partner's usual lesser salary, the student loan repayments were considerably less than are now showing on payslips - but then again the salary will be higher. Will we need to show older payslips to show lesser loan commitment each month?

  • Re: Ask me anything.......I'm a Mortgage Underwriter......

    CHLOE_T:

    Thanks for a very quick reply. If we do go on my partner's usual lesser salary, the student loan repayments were considerably less than are now showing on payslips - but then again the salary will be higher. Will we need to show older payslips to show lesser loan commitment each month?

    To be honest I'm not too sure as each lender will work it out differently. On your 2013 P60 it will show how much you have paid throughout the year so they may want to see the 2012 P60 too so they can average it out.



    On the Old Married Bench since 18th May 2012

    Full wedding report at : http://www.hitched.co.uk/chat/forums/t/316910.aspx?PageIndex=1

  • Re: Ask me anything.......I'm a Mortgage Underwriter......

    Sian-Tiffany:

    Hi, sorry about the delay - been a mega busy week. Please don't worry, there shouldn't be a problem. In fact I happened to offered a case last week that had the same situation as you had just described. The person in question didn't pay a student loan as they were under the threshold but got a bonus one month so paid a small amount. As you have exchanged and are ready to complete it would be really shitty of your lender to do that. In fact I am 99.999999999999% they wouldn't. Good luck with the move!

    Thank you so much, you have no idea what a relief it is to hear that! :)

  • Re: Ask me anything.......I'm a Mortgage Underwriter......

    Wow! A real live mortgage underwriter! *everybody pounces*

    I have just applied for a mortgage with the Chelsea (Yorkshire Building Society). I received a DIP a few days ago and then just completed a full application online and been told that they usually assess applications within a day! I chose the Chelsea because they were offering a great 5 year deal (3.04 %) for my 75% LTV. I sent the application off iand nearly £600 in fees (including extra for a homebuyers report).

    However, then I did a quick google to read some reviews from customers about them (and the Yorkshire's who they are owned by) and honestly I could have cried. The reviews are so bad

    Some saying that Chelsea and Yorkshire building society, essentially lure borrowers in with great products, offer DIP, take fees and then decline at the 11th hour? I am trying not to panic but I have just paid these fees and I have an offer accepted on a great house but what if this is true? Have you heard any such thing or is it a case of disgruntled customers being the ones who are most likely to write reviews and therefore mortgage companies appearing to be much worse than they are? 

    On the phone, I was told that with my 25% deposit, I would most likely only need one recent payslip and one back statement which verifies that payment (which obviously I have). They also said that provided all details were given and they were happy with my credit score that my case would most like not go to an underwriter? I'm not quite sure what that means? Do not all mortgages go to an underwriter? My credit score as of this week with Experian is 996 and with Equifax 473 (which is pretty good right?). I currently have no debt as I have recently paid it off. My credit reports show that I have settled several loans early over the past 5 years. But I have moved house quite a lot which apparently is not so great from a lenders perspective? 

    I was surprised they wanted no P60? On the online application they asked for my employers details and a contact who would verify my employment (which I expected), my landladies details (which I did not expect) and also my tax reference, tax office and NI number (which i was pretty shocked by as felt that was very intrusive)? I was fully expecting them to contact my employer and as a first time buyer I can also understand why they might want to check with my land lady that I have paid my rent on time over the past year (incidentally i have) and also my rent is much higher than my mortgage will be because interest rates are so low and rents comparatively high, so i'm hoping they will look on my affordability favourably? But in the small print it did say that they might contact the tax office to check on earnings, which I have never heard of any bank or building society doing, I wouldn't have thought it was even legal...  is it a new thing? Is that something underwriters do now and I have just never heard of it? 

    Anyway, I guess I am just looking for reassurance and any information in this crazy credit crunch mortgage market on what to expect? Have you heard anything about mortgage lenders pulling a scam with giving applicants DIP, taking mortgage application and valuation/home buyer report fees and then rejecting for obscure or seemingly insignificant reasons (some of the worst reviews were from people who had 70% LTV, excellent credit scoring, permanent jobs etc)? Are the Chelsea (Yorkshire) known for declining lots of applicants? I also read on one review that the Yorkshire had said they would leave an adverse decision mark on the credit report of anyone they declined and i'm assuming this will damage a credit score so i'm freaked out about that now too! I have been renting and saving for ages to finally have my 25% deposit :-(

    My own mortgage application is as a single person based on earning 42k gross basic (no extras) with no debts, but I have two kids who are obviously dependent on me (my family does my childcare for me so no childcare expenditure) and borrowing 127500k (which is much less than I was offered potentially). I have been employed by the NHS most of my career but last summer (2012) left the NHS for a new company who head hunted me and offered me a better salary. I got the impression that lenders always liked that I worked for the NHS because they are such a stable employer (not any more) but my new employer are only a year or so old as a company, will that be a problem? 

     

    Any advise for a freaked out mum with her first mortgage application much appreciated!! 

     

     

  • Re: Ask me anything.......I'm a Mortgage Underwriter......

    cavegirl:

    Wow! A real live mortgage underwriter! *everybody pounces*

    I have just applied for a mortgage with the Chelsea (Yorkshire Building Society). I received a DIP a few days ago and then just completed a full application online and been told that they usually assess applications within a day! I chose the Chelsea because they were offering a great 5 year deal (3.04 %) for my 75% LTV. I sent the application off iand nearly £600 in fees (including extra for a homebuyers report).

    However, then I did a quick google to read some reviews from customers about them (and the Yorkshire's who they are owned by) and honestly I could have cried. The reviews are so bad

    Some saying that Chelsea and Yorkshire building society, essentially lure borrowers in with great products, offer DIP, take fees and then decline at the 11th hour? I am trying not to panic but I have just paid these fees and I have an offer accepted on a great house but what if this is true? Have you heard any such thing or is it a case of disgruntled customers being the ones who are most likely to write reviews and therefore mortgage companies appearing to be much worse than they are? 

    On the phone, I was told that with my 25% deposit, I would most likely only need one recent payslip and one back statement which verifies that payment (which obviously I have). They also said that provided all details were given and they were happy with my credit score that my case would most like not go to an underwriter? I'm not quite sure what that means? Do not all mortgages go to an underwriter? My credit score as of this week with Experian is 996 and with Equifax 473 (which is pretty good right?). I currently have no debt as I have recently paid it off. My credit reports show that I have settled several loans early over the past 5 years. But I have moved house quite a lot which apparently is not so great from a lenders perspective? 

    I was surprised they wanted no P60? On the online application they asked for my employers details and a contact who would verify my employment (which I expected), my landladies details (which I did not expect) and also my tax reference, tax office and NI number (which i was pretty shocked by as felt that was very intrusive)? I was fully expecting them to contact my employer and as a first time buyer I can also understand why they might want to check with my land lady that I have paid my rent on time over the past year (incidentally i have) and also my rent is much higher than my mortgage will be because interest rates are so low and rents comparatively high, so i'm hoping they will look on my affordability favourably? But in the small print it did say that they might contact the tax office to check on earnings, which I have never heard of any bank or building society doing, I wouldn't have thought it was even legal...  is it a new thing? Is that something underwriters do now and I have just never heard of it? 

    Anyway, I guess I am just looking for reassurance and any information in this crazy credit crunch mortgage market on what to expect? Have you heard anything about mortgage lenders pulling a scam with giving applicants DIP, taking mortgage application and valuation/home buyer report fees and then rejecting for obscure or seemingly insignificant reasons (some of the worst reviews were from people who had 70% LTV, excellent credit scoring, permanent jobs etc)? Are the Chelsea (Yorkshire) known for declining lots of applicants? I also read on one review that the Yorkshire had said they would leave an adverse decision mark on the credit report of anyone they declined and i'm assuming this will damage a credit score so i'm freaked out about that now too! I have been renting and saving for ages to finally have my 25% deposit :-(

    My own mortgage application is as a single person based on earning 42k gross basic (no extras) with no debts, but I have two kids who are obviously dependent on me (my family does my childcare for me so no childcare expenditure) and borrowing 127500k (which is much less than I was offered potentially). I have been employed by the NHS most of my career but last summer (2012) left the NHS for a new company who head hunted me and offered me a better salary. I got the impression that lenders always liked that I worked for the NHS because they are such a stable employer (not any more) but my new employer are only a year or so old as a company, will that be a problem? 

     

    Any advise for a freaked out mum with her first mortgage application much appreciated!!

    Hello, really sorry about the delay. Not been at the office so only just got this message.

    To be honest no lender is perfect and people don't always write good reviews of us, so for 1 bad review the will be other good ones. Having a 25% deposit is a very good thing and will go in your favour as long as you have a good credit history. Lenders don't pull offers lightly so the people who have had theirs pulled have either lied or something  legal has come up. lenders also don't pay any attention to Equifax orExperian scores as we have our own internal scoring system. All we care about is that you have a good credit history, are on voters roll and have a previous track record. As you seem to have these I, personally, can't see any problem.

    income wise all lenders will require proof and it is down to the individual lender as to what proof they ask for. My lender asks for the last 3 months payslips and the latest P6 so we can gauge the previous years earnings. We may also ask for bank statements to show these being credits and you rent being paid. Sometimes if we aren't satisfied we may ask for further information to satisfy ourselves.

    Please don't worry too much about your situation, if you have any further questions I am hear too help and answer any further questions you have.



    On the Old Married Bench since 18th May 2012

    Full wedding report at : http://www.hitched.co.uk/chat/forums/t/316910.aspx?PageIndex=1

  • Re: Ask me anything.......I'm a Mortgage Underwriter......

    Me and the H2b are starting our saving pot for a house after the wedding but we want to buy a renovation project and fix it up the way we want... not a massive bring down half the house type but just a fixer upper... how would we go about getting a mortgage for this? x

    We got married on Saturday 12th July 2014

  • Re: Ask me anything.......I'm a Mortgage Underwriter......

    StaceyLorraine:

    Me and the H2b are starting our saving pot for a house after the wedding but we want to buy a renovation project and fix it up the way we want... not a massive bring down half the house type but just a fixer upper... how would we go about getting a mortgage for this? x

    As long as the property you intend to purchase has fully functioning facilities such as connected mains, gas, water etc....and no structural damage, then you should be able to get a standard mortgage. What kind of project are you after?



    On the Old Married Bench since 18th May 2012

    Full wedding report at : http://www.hitched.co.uk/chat/forums/t/316910.aspx?PageIndex=1

  • Re: Ask me anything.......I'm a Mortgage Underwriter......

    Sian-Tiffany:
    As long as the property you intend to purchase has fully functioning facilities such as connected mains, gas, water etc....and no structural damage, then you should be able to get a standard mortgage. What kind of project are you after?

     

    We just want something simple with no structural work that we can make our own then move into but we are looking at auction which is the part that's worrying me as i don't know how buying at auction and mortgages work together.

    We got married on Saturday 12th July 2014

  • Re: Ask me anything.......I'm a Mortgage Underwriter......

    If you're going to auction you need to be very careful. Whilst they are great to pick up a bargain you must must must do your full research on the property as if your bid is accepted you exchange that day, have to pay a none refundable 10% deposit and have to completed within 28 days.

    i see these quite frequently so you need to have an AIP/DIP in place so they know your bid is serious and you can get a mortgage facility. The rest is down to the property, if you know someone who knows a lot of stuff about property or structure take them along to get an idea of what work needs doing. As properties may look stable but you never know until you get a formal valuation.

    Good luck



    On the Old Married Bench since 18th May 2012

    Full wedding report at : http://www.hitched.co.uk/chat/forums/t/316910.aspx?PageIndex=1

  • Re: Ask me anything.......I'm a Mortgage Underwriter......

    • Jimboc
    • Joined on 8 Jul 2013
    • Posts
      1

    Great thread!

    I've a couple of questions:

    1) We are just about to apply for a mortgage as joint application. I am currently with Employer A but have gone to Employer B for an assignment. Employer B has offered me a post permanenlty with no probationary period (as I have already served over 6 months). I have the contract and offer am am due to start in one month. Can I use this as the basis for my salary. I have been in continuous employment for years.

    2) One of us does nto have a credit card but pays mobile phone bills & utility bills regularly. Will this be okay? No missed payments, etc.

    Thanks v much!

  • Re: Ask me anything.......I'm a Mortgage Underwriter......

    Jimboc:

    Great thread!

    I've a couple of questions:

    1) We are just about to apply for a mortgage as joint application. I am currently with Employer A but have gone to Employer B for an assignment. Employer B has offered me a post permanenlty with no probationary period (as I have already served over 6 months). I have the contract and offer am am due to start in one month. Can I use this as the basis for my salary. I have been in continuous employment for years.

    2) One of us does nto have a credit card but pays mobile phone bills & utility bills regularly. Will this be okay? No missed payments, etc.

    Thanks v much!

    Hiya,

    1)      I would say this would be ok but its down the individual lender as to what their requirements are. They would need a full rationale as to why you swapped from 1 to 2 but if 2 can confirm in writing that you are a full time permanent employee there should be no problem.

    2)      Utilities don’t appear on a credit search but mobiles do HOWEVER these are not used to make a formal decision. The only credit an underwriter will look at are; mortgages, credit cards, mail orders, loans and fixed term credit (e.g DFS furniture). If you have none of these they may request bank statements to check your conduct but some lenders will decline you outright as you have no credit. As per my previous replies id take out a credit card with your current bank and not use it. It’s the old catch 22, you need to have credit to get credit.



    On the Old Married Bench since 18th May 2012

    Full wedding report at : http://www.hitched.co.uk/chat/forums/t/316910.aspx?PageIndex=1

  • Re: Ask me anything.......I'm a Mortgage Underwriter......

    Really hoping you can help answer this and relieve some stress for me.

    I'm self employed and have had a mortgage with Birmingham Midshires for 10 years. I added my now DH to it about 5 years ago and have checked that my name is still on it, they haven't accidentally removed me.

    We sold our house yesterday and the house we have put an offer on goes to closing on Monday.

    Last Wednesday we applied for Yorkshire building society fixed 10 year mortgage, we've got 2 young children- 3 years and 7 months so want this stability for as long as possible. Anyhoo, it was agreed in principle on my DH's income alone and we put an offer in.

    yesterday afternoon their mortgage advisor phoned to say that the underwriters can't 'find' me. I'm not on the electoral roll yet, will be on 1st August BUT I've had a mortgage for 10 years, been with my bank for over 20, have an overdraft,  had mobile phone contracts for 10 years, the utilities are in my name, tv licence, council tax, had a mail order account with different catalogue s over the years, had different credit cards over the years, had a couple of car loans, pay my taxes, use an accountant. Probably more that I've not considered but my question is- how the hell can't they 'find' me?

    If they can't we won't get the mortgage that I'm not contributing to, what else can I do to provide them with this credit history they need?

     

    thanks in advance for even taking the time to read x

  • Re: Ask me anything.......I'm a Mortgage Underwriter......

    Hello..... 

    Please could you possibly help me out with a current mortgage application that we have on going. 

    My partner and I are both first time buyers with 2 children and have had a decision in principle. When applying, we put across both salaries.

    Me £1061pm take home.  Just increased to (£1368.22) take home

    Partner £550pm take home Part Time

    Tax credits £275pm 

    I have the mortgage adviser coming in two days to collect all our information such as bank statements, payslips etc.

    I have in the past few days been given a salary increase by my employer which has risen by £5000 per year. I have informed the mortgage company and tax credits of this and they have said they will take this into account. I have been given a letter from my employer stating that from the start of the month I would be receiving the extra. I will also have a my payslips showing this going forward. If they contact HMRC they should be able to see this, but it has only just been changed but wouldn't be a problem as it will all be confirmed and above board with them. 

    I have been asked for my last 6 months bank statements, but these show more money in my account than i can account for.

    For example my elderly mum was putting her savings aside and keeping it in her house as she doesn't have a bank account, so I created a saving account in my bank and put it in there for her. It shows £3300 of her money coming into my bank in march. Will they ask what this is?? 

    Also my employer use to rent us a house but had to sell about a year ago, we use to pay a £350 rent for this property, but when he sold, he agreed for us to find a house and he would make up the short fall.  Since then he has been paying us an extra £350 per month into my account. But the payments wasn't monthly at times he would deposit like £2000 into my account that would cover 6 months rent. I didn't pay tax on this as it wasn't part of my wage or anything like that. Will the underwriter ask why I have £2000 coming in at times and what its for? Will they also contact HRMC about this? As I believe it not to be taxable.

    I have also been doing some freelance website developing work on the internet, where I get paid for web development work through paypal. so at times in the months I have £550 coming from pay pay. I think a couple of the months i have about £1500 coming from pay pal and another about £1750 from paypal. Will these be questioned by the underwriter and again passed to HMRC?

    For example in the month of March i think i had about £8500 coming in to my bank account as my mum paid in her £3300 my payment paid £2000 to cover our 6 months rent and we had our salaries and tax credits and maybe a payment from pay pal.  

    Will HRMC be informed of what I have in my bank account and also the amounts, as the freelance work hasn't had tax paid on it as I haven't done it much just 3 or 4 times. Its not a regular thing or income.

    I know that HMRC will need to be contacted as I have only just had the pay increase and won't have 3 payslips or the amounts showing on my bank stamens to confirm the increase. But will they question the large deposits and inform this to HMRC?

    To me everything looks very suspicious, but I can account for all money apart from the paypal as there has been no tax paid on some of the paypal payments. 

     

     

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