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Mortgage Advisor & Director
What is a mortgage underwriter?
A mortgage underwriter is someone who performs careful analysis of the risk of lending money to a mortgage applicant and makes the final decision.
A mortgage underwriter gets involved once the initial automated process of the mortgage application has completed. During this first phase, your credit history will be checked and income assessed before passing on to the next stage. A mortgage underwriter will then analyse your mortgage application and perform a risk assessment. They will be keeping an eye out for any irregularities or inconsistencies in the information provided and may ask for clarifications.
After performing their evaluation, they will make their decision and either approve, decline or suggest amendments to the mortgage application.
What does a mortgage underwriter do?
A mortgage underwriter will go a number of stages in analysing the application:
- Evaluating the risk of the loan, considering the risk factors by looking at your credit history and affordability.
- Checking that you meet specific requirements for the loan.
- Assessing the documentation provided to make sure that everything has been completed correctly.
- The lender will need to be satisfied with where the money is coming from; they may ask for more details if the deposit is gifted.
- The underwriter will also check on the type of property and that it meets their lending criteria.
The primary concern of the underwriter is that you'll be able to meet mortgage loan repayments comfortably and that the loan is a good investment.
How long does underwriting take?
Considering the amount of information that an underwriter has to manage and assess, assuming all goes to plan underwriting can be as quick as a few days, and typically around a week.
The time it takes can vary depending on the workload, time of year, the experience of the underwriter and the complexities of the application.
What happens if your mortgage is declined?
If your mortgage is declined, the first thing to do would be to try to find out why. Lenders will typically tell you the reason why you've been rejected, and your broker can also help. Once you know the main reason you are in a better position to fix the problem and improve your chances for next time.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
