how long does an underwriter take to approve a mortgage uk

How Long Does It Take for a Mortgage Underwriter to Approve Your Loan in the UK?

Getting a mortgage can be an exciting yet stressful process. One of the most nerve-wracking parts is waiting for the underwriter to review your application and give approval. So how long does it actually take for an underwriter to approve your mortgage in the UK? In this comprehensive guide, we’ll walk through the key factors that determine the underwriting timeline, best practices to expedite approval, and what to do if you get rejected.

What Does a Mortgage Underwriter Do?

The underwriter is the person at the lender who assesses your mortgage application and determines if you qualify for the loan. Their main job is to evaluate your creditworthiness, income sources, assets, debts, and other financial information to estimate the risk of lending to you.

The underwriter will verify that all documentation provided is accurate and meets the lender’s requirements. They’ll also appraise the property you want to purchase and ensure the loan amount appropriately reflects the value. Their approval is essential for your mortgage loan to proceed.

How Long Does Mortgage Underwriting Take?

There is no one-size-fits-all timeline for underwriting. It can range from just a few days for exceptionally strong straightforward applications to several weeks for complex situations requiring extensive review.

Here are some of the key factors impacting how long underwriting takes:

• Your Personal Financial Profile – Applications from borrowers with pristine credit, high incomes, and minimal debts get greenlit fastest. Red flags like late payments, defaults, or a high debt-to-income ratio lead to longer processing.

• Type of Income: People who are salaried and have pay stubs are approved faster than people who are self-employed and need to show tax returns from multiple years.

• Down Payment Amount – Larger down payments signalling lower loan-to-value ratios speed up approvals.

• Documentation Submission – Quick submission of all required paperwork prevents delays versus missing documents trickling in over weeks.

• Mortgage Product Type – Conventional mortgages have faster timelines than specialized products like buy-to-let or right-to-buy mortgages.

• Workloads of Lenders—Some lenders just have more tools and can handle requests more quickly than others.

A clean mortgage application in the UK should be approved within one to two weeks, though each case is different. Complex cases often get resolved within 3-4 weeks.

How to Expedite Mortgage Underwriting Approval

Here are some tips to help your underwriting go smoothly and quickly:

• Start preparing documentation like bank statements, tax returns, and pay stubs well in advance of your application.

• Ensure all paperwork submitted is complete, accurate, and consistent. Even small discrepancies can raise red flags and cause delays.

• Provide prompt clarification or additional documents whenever requested by your underwriter. Unresponsiveness stalls approvals.

• Maintain open communication with your mortgage advisor throughout the process for guidance.

• Avoid applying for new credit during underwriting as it may impact your credit score negatively.

• Select conventional mortgage products that get assessed quicker than specialized offerings requiring extra diligence.

• Ask your advisor if rapid underwriting programs are available to shorten timelines.

What if My Mortgage Gets Declined?

It can be disheartening if your mortgage gets rejected by the underwriter. But take heart – with expert help, you can often overcome this hurdle:

• Find out the exact reason for rejection – credit score too low or insufficient income? Your advisor can get these details from the underwriter.

• If it’s due to credit, order your reports and start repairing any errors immediately.

• For income issues, discuss adding a co-signer to supplement your earnings.

• Consider alternative mortgage products like sub-prime or right-to-buy tailored to your situation.

• An experienced broker can recommend customised solutions to help you qualify upon reapplication.

Bottom Line

Even though it can be painful to wait for underwriting approval, there are things you can do to speed up the process. The UK clears most clean applications in one to three weeks. Talk to a mortgage expert about your specific situation to get a more accurate estimate of how long it will take. If you do hit a rejection, don’t lose hope. With help from professionals, you can often find other ways to get your mortgage approved.