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From DIP to completion: The story of a mortgage application

Alan


Steve – Senior Mortgage Underwriter

Published 23.01.2020

If you’re an experienced broker, you’ve no doubt helped hundreds of customers with their mortgage applications. But once you and your customer have completed the paperwork, have you ever wondered what happens when our Underwriters get to work?

For this blog, I thought you might find it interesting to follow the story of an application from start to finish. Like all good stories, this one has a beginning (DIP), a middle (full mortgage application) and, hopefully, an ending where your customer lives happily ever after in their new home (completion).

The story of a mortgage application

DIP

Once you’ve submitted your customer’s DIP, you’ll receive one of three decisions – an ‘accept’, a ‘refer’ or a ‘decline’. If it’s an ‘accept’, you can proceed by completing a full mortgage application. If it’s a ‘refer’, our underwriters will review to see if we can help your customer. If it’s a ‘decline’, your customer might like to try again at a later date.

Full mortgage application

Once we receive the application and your customer has paid their fees, our Underwriters will assess their case. If we need more information, a member of the team will contact you to discuss what’s required. Depending on whether your customer needs a Buy to Let or Residential Mortgage, you can find all the information we need before submitting an application by using our handy Buy to Let or Residential Mortgage Submission Guides.

Valuation

Once we’ve received the correct documentation, we’ll instruct a valuation to be carried out. Whilst the valuation is being done, we’ll work on any additional documentation to make sure the case progresses as quickly as possible. Subject to a satisfactory valuation and all outstanding documents being received, we’ll progress the case to the Ready for Offer stage.

Offer issued

The team will conduct final checks to ensure everything’s in order. Once they’re satisfied, we’ll issue the standard offer documentation plus the following offer paperwork, depending on the type of application as soon as possible:

  • Acceptance of Offer to the customer for Buy to Let and Residential Mortgage applications
  • Nominated Legal Advice Confirmation to the customer for limited company applications
  • Deed of Guarantee Indemnity and the Legal Advice Confirmation to the customer’s solicitors for limited company applications

Post offer

Once all offer conditions are satisfied and the signed and dated paperwork is returned to us by post, it will be reviewed by our Post Offer team for accuracy. If an offer is due to expire, you can ask the Post Offer team to consider an extension by emailing [email protected].

Completion

Once all documents have been received, including the Certificate of Title from the customer’s solicitors, we’ll carry out a completion call with all parties to ensure all of the details on our system are correct. Once this has been done, we’ll arrange for the funds to be released.

Don’t forget you can always follow the progress of a case by logging into our Client Management System 24 hours a day, seven days a week. And if you’ve got any questions or need a little more help, our experienced service team is always available by calling 0800 116 4385.

 

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