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Thread: Mortgage application "referred to underwriters". Is there ever a good outcome?

  1. #1
    VXRed blooded
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    Default Mortgage application "referred to underwriters". Is there ever a good outcome?

    Evenin all. Put a mortgage application through this evening and it got referred. I sign up to one of those online services where you can check your credit score and mine is 760, my missus 740. The mortgage repayments are less than our current rent and just had a payrise so affordability is not a problem. My girlfriend has a default on her file from 4 years ago but no more than 2 late payments (by less than 1week each) between us in almost 4 years.

    Has anyone ever had credit requests "referred" and subsequently been accepted? My guess is it is rare and that a referral is very very rarely accepted later but opinions/experiences would be interesting.

    Thanks, rick

  2. #2
    VXR newbie
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    hi mate
    i wish you both the best of luck
    from my understanding the way it works is this
    government has told mortgage companies to lend money
    this they will do......but.....they dont want to................so........................anyway they can squirm out of it they will...and do
    a bit like insurance companies !!!!!!!!!!

    a year or so ago you would have had no probs with a couple of late payments.....but today is a new ball game

    i hope i am wrong for you and you get your mortgage.....but it aint borrower friendly out there at the moment

    good luck

  3. #3
    VXRed blooded
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    Mine went through fine mate, ours payments are quite tight on budget because we did it on just my wages. If its easily affordable for you every month should be ok. Think its just one of those things they have tightened up after recession.

  4. #4
    VXRed blooded
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    Hope so. Pretty much have it in my head that it's a no go now. Accepted that, now looking at other solutions or trying to work out what to do to improve our position within the next 3, 6, 12 months. Get the car sold, clears the finance. Get to November, loan cleared (if I add car payments that will half the time so cleared august). If it all comes good tomorrow then happy days! If not, move on. Tempted to not sell my baby now. Although I have a baby. How much do they go for? (any police reading this that is NOT a serious comment. Please don't take my baby)

  5. #5
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    -A default is a default . In the banks eyes . (or mortgage company)

    What deal are you applying for , with who .

    Fixed or variable
    percentage
    what loan to value (deposit vs house price )
    how long
    how old are you both
    is there a broker or application fee you have ALREADY paid ?

    pm me if you need some help or if your app gets rejected .

  6. #6
    VXR enough DMVXR's Avatar
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    I can see a couple of reasons why it's been referred,

    Your previous default and perhaps affordability,

    It is most likely that you have "ticked a box" in their approval checklist due to loan or repayment amount or your previous credit history, I don't think it's anything too disasterous

    I see it's less than you are paying, but a lot of lenders will need more free money in the affordability calcs for a long term loan like a mortgage than for a comparatively short term such as approval for rentals,


    Likely outcomes are in the following order

    Approved
    Then a gap in probability That it could be
    Or
    Approved for a lower amount
    Or
    Approved but with a higher interest rate
    Or
    Both of above
    Or rarely
    Decline

    Don't worry just yet, it's the process,

    The above is based on personal experience only, Where you end up on the above list will depend on how seriously they view the reason for the referral

    I hope it works out for you,
    .
    Last edited by DMVXR; 4th May 2011 at 07:52 PM.
    The adventure is over, Blue Beast, gone

  7. #7
    VXRed blooded
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    It's a builders scheme whereas they put in 20% of the agreed purchase price and we put in 5%. Therefore mortgage is 80% ltv of 215k so 161k. I'm 23, she's 27 so quite young but I have <10k car loan cleared in 34 months and a loan eared before house is built. I earn 30k, she's on 23. I made sure I have the reservation fee fully refundable if mortgage rejected (in writing with a signature) so no ive lost nothing, just gained experience. There is a broker involved but again, no cost until approved as he gets 1.3% of agreed mortgage value. The only banks I'm aware of are nationwide and Halifax who will do shared equity (NOT share ownership - very different).

  8. #8
    Still the VXR Fairy but now of the cross dressing kind! smithy's Avatar
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    Quote Originally Posted by VXRick1987 View Post
    It's a builders scheme whereas they put in 20% of the agreed purchase price and we put in 5%. Therefore mortgage is 80% ltv of 215k so 161k. I'm 23, she's 27 so quite young but I have <10k car loan cleared in 34 months and a loan eared before house is built. I earn 30k, she's on 23. I made sure I have the reservation fee fully refundable if mortgage rejected (in writing with a signature) so no ive lost nothing, just gained experience. There is a broker involved but again, no cost until approved as he gets 1.3% of agreed mortgage value. The only banks I'm aware of are nationwide and Halifax who will do shared equity (NOT share ownership - very different).
    Natwest will do the Shared Equity Scheme Mortgages, i didnt go through a broker but through my bank with better rates. I was referred to underwriters who wanted proof of earnings in wage slips. I have one default on my credit from a couple of years back on a credit card where a payment was made late. I had my mortgage at 21 in my own name and i have a bank loan as well which was last year when it all went through.
    Quote Originally Posted by smithy View Post
    I'm still a fricking FAIRY

  9. #9
    VXRed blooded
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    Got declined. Subsequently checked my experian credit report and it is showing a score of only 236?! Rang them and they have no idea why it isso low, nothing justifiable and looks like other files in the 700-800 range. Call credit have me at 789, equifax at 759. Average therefore 774 so why 236 from experian! They had me matched on the electoral roll but had my post code wrong. Also had me living in 2 places at the sane time for 6 months, then nowhere for 6 months. Only 2 years of history and not 8. So many **** ups. They have sorted it now and hopefully when I refresh in "24-48 hous" it will be back to 770ish so will go through. So much unnecessary stress when my baby is due on 20th and got approved for an 80% normal mortgage 3 months ago for £207000!

  10. #10
    VXRed henke's Avatar
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    Having a mortgage application denied will lower your credit score. I'm not sure it will lower it that much though.

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