Will I pass the underwriter checks?

A question about : Will I pass the underwriter checks?

Hello.

Long term lurker, plenty of reading though. Need an opinion or two!

After many years of trying to put my credit file right, I have finally got myself in a position to apply for a mortgage. I have no defaults, some very old late payments from 2009 and a couple of AP markers from 2009. Other than that all my accounts show up to date and in good order. No late payments or anything from 2009. No payday loans in the last 12 months, nothing late at all.

I owe a total of Ј10,500 on credit cards at 0% so coming down nicely.

We applied to Santander for a HTB 5% deposit on a property of Ј230,000.

We earn Ј34K(me) and Ј27K my partner who has a perfect credit file.

Santander did an affordability checks, and we are all on the right side that they did a credit check and AIP was given. So far so good.

We have now submitted the full forms which have gone to the underwriters. 3 payslips, last three months of bank statements, during that time only went into OD once for 1 day for Ј19 (authorised overdraft). No charges or anything applied.

We have a nervous few days of waiting, but based on the above - do you think this is likely to be a positive outcome?

Best answers:

• Is it HTB equity loan or HTB mortgage guarantee?
  If the latter, im surprised you have got as far as you have. Arrangement to pay, 95% mortgage and Ј10k worth of debt, it must be tight on affordability.
  If the former, I dont have any experience of so cant comment.
  What made you choose Santander?
• HTB mortgage guarantee. The cost to service the debt is Ј500 per month versus a joint income of Ј3700 - so why would that fail an affordability check? The cost of mortgage is Ј1200 - and they have checked it up to Ј1600 due to the tight guidelines. So we have plenty of "fat" to play with - or am I missing something?
  Santander was just timing - they called me offering to reduce a mortgage - until I told them we rent and dont have a mortgage - but we were interested in a new mortgage as first time buyers.
  The AP marker was 2009 and shows on Callcredit only - not Equifax
• Because lenders do not usually work off what it costs to service the debt, they have a notional figure they use depending on the amount (although im not familiar with santanders stance as I do not use them much).
  With regards to the mortgage, again its worked out on a standard rate, which is usually higher than hat you are actually paying (typically around 6-8%), but again not being a big user of Santander im not sure on their stance.
  Is the AP marker on Experian? I dont think santander use call credit or equifax.
  Also the fact you want a 95% mortgage (Ј11,500 deposit) and you have Ј10,500 worth of debt... Its like your deposit has come at the expense of using credit cards, which Santander are one of the few (if not only) who do not mind "borrowed" deposits so you might have got lucky on that front. Appreciate that the Ј10,500 is probably not borrowed to use as a deposit but some lenders may view it like that.
  You may have fallen on your feet here and got lucky, im also assuming you must probably bank with them and so have a bit of a relationship there which again may help.
• I told Santander the value of what is outstanding, and they ignored what I pay and put there own calculation against each one. It showed affordability was OK.
  You are dead right on the mortgage rate - 4.99% but affordability check of 8% I think. We were fine there too.
  The AP marker only shows on Callcredit, not Experian anywhere.(score 999) I have not hidden it in anyway. I still have the card active where the AP is - the AP was back in 2009 so a while ago, so I was hoping that accounts for something?
  I have an account where we pay our bills using that account (123 account) but no Salary get s paid in etc.
  The deposit is in ISA's so that is certainly not the case of being borrowed, and can easily be proved I guess if required.
  Am I looking more positive in your opinion?
• It does sound more positive, but I am still surprised its got as far as it has.
  I think the AP marker not showing up is a big plus point though.
• OK - now I am nervous again...! Well I guess there is nothing I can do but wait for the decision to come back from the underwriters.
  As a MA - do you think we could immediately apply via a MA and be successful based on the above? If we failed Santander underwriters check that is.
• Dont be nervous, I dont use Santander a lot so im not that up to speed with their criteria and processes etc. They just never really appear when doing my research so we never seem to really cross paths.
  Someone like kingstreet on here will probably use them a lot more than I do.
  If they decline you, I dont doubt for a minute there will be options but without running the affordability dont hold me to it. I do think affordability (purely because of how lenders calculate it, nothing to do with you making your monthly repayments as things stand) could be tight but it will depend on the lender/term and everything else... hows that for sitting on the fence?
• Ironically they just called saying they are querying cards i did not declare as I show payments on my bank statement of Ј0.02p. I explained it was trailing interest, and cards are zero. and they said thats fine.
  I asked everything else OK - she said thats all they have asked for so - so far so good.....
  Affordability is truly fine - well within our budget - it was my historical data that is worrying me.
  Appreciate the feedback - its opinion but you are in the know....I am not.
• Are you saying that lenders would have a problem with putting money in savings towards a deposit each month rather then paying off credit card debt?
• Well - blow me down. Just had a call from Santander, and it has been approved - subject to property valuation. woohooo!! So happy!
  I appreciate things can go wrong, but I have to say Santander have been fantastic! Less than 24 hours from submission to full approval!
• Well done and good luck.
  Just goes to show that people do make a lot of assumptions on here and sometimes cast very unfair opinions on posters threads, granted with not knowing the full story. Every case is indeed different and treated on its merits, you paint your picture on here, only for others to come and tell you, you painted it wrong.
  You have to take the rough with the smooth on what advice you are given, sometimes i feel its better to not post at all and worry silently rather than open yourself to replies that cast a lot of doubt on what you have done. Obviously this is easier said than done, its in some people's nature to worry, and that little glimmer of hope from 'experts' on here is what puts your mind to rest, at least for a short period.
  Hope everything here on in goes well.
• Over the moon.
  @TakeItAsRed - I hear you - but that is the internet.
• The brokers on here are great. However there are some who come on here to seemingly lecture and poke open wounds.