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Underwriting delays at lenders: "We are going backwards rapidly"

ended 26. November 2024

Brokers have said they are finding it is taking much longer to get underwriting decisions at present and that this is costing their clients potentially thousands of pounds as rates have increased by the time even a simple decision has been made. One said: “The mortgage underwriting merry-go-round has turned into quite the slow waltz.” Another added: “There is a lot to be done here as we are going backwards rapidly. Lenders are understaffed and are also recruiting lower paid processors rather than underwriters who are often young and inexperienced.”

8 responses from the Newspage community

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Dariusz Karpowicz
Director at Albion Financial Advice
The mortgage underwriting merry-go-round has turned into quite the slow waltz. There are highly frustrating delays, with some lenders now taking up to four weeks to even glance at a case. The situation appears to stem from a perfect storm: a surge in remortgage applications as fixed rates expire, combined with reduced staffing levels at many lenders following the post-mini-Budget restructuring. This bottleneck is causing significant financial implications, with rate increases potentially adding thousands to clients' mortgage payments during these extended waiting periods. While some lenders are actively recruiting to address these challenges, others seem to be using service delays as a way to manage their pipeline flow – a rather unfortunate approach that's putting both property purchases and broker-client relationships under unnecessary strain. Perhaps it's time for lenders to invest in more efficient processes rather than testing everyone's patience.
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Michelle Lawson
Director at Lawson Financial
There is a lot to be done here as we are going backwards rapidly. Lenders are understaffed and are also recruiting lower paid processors rather than underwriters who are often young and inexperienced. They become a 'bum on the seat'. We are seeing things take so much longer, which is ironic given all the technology that is now in place that has been invested in. A lot of things are also put in place to make things better for the company offering but not for customer or end user. By the time we find out of a decline, borrowers will have parted with fees to solicitors, valuers/surveyors and booking fees, which will go to waste. It was found last year that in one quarter alone, £240m was lost in wasted fees on transactions that did not complete. That isn't Monopoly money.
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Ken James
Director at Contractor Mortgage Services
It does feel sometimes that no matter how many hoops you jump through underwriting simply does not seem to progress. I have chased cases to be told that it was stuck for no apparent reason. We brokers must be on the lenders' case to check things are progressing. Underwriters will also have a different flavour of the week, depending on the nature of the case the lender may get want to cast an extra layer of scrutiny and this can cause more delays. No one wants to lend irresponsibly but it would be great if we could get outcomes faster than we are now. Given that it feels like volumes are down for us I am surprised by the delays currently taking place.
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Patricia McGirr
Founder at Repossession Rescue Network
As we navigate the market hokey-cokey of shifting rates, fees, and disappearing products, borrowers are increasingly at the mercy of lender delays. Underwriting decisions are stretching from days into weeks, forcing clients to watch rates rise and deals fall apart. Whether it’s sheer volume or resourcing issues at play, the question remains: do lenders have an effective triage system, or is it a chaotic 'first-come, first-served' approach? The result is all too clear: missed opportunities, costly aborted deals, and more expensive borrowing. For brokers, the frustration and anxiety often land squarely on our shoulders. But the real cost is borne by borrowers. These delays aren’t just inconvenient, they’re financially and emotionally destructive. It’s time for lenders to tackle this head-on.
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Mark Eaton
COO at April Mortgages
It's a continuing source of annoyance for brokers. The lack of direct access to underwriters is at the core of the problem and many lenders are simply not addressing the issue. With rates fluctuating so frequently, brokers need to speak to the person who has the authority to make a decision on a case there and then. Call centres create unnecessary bottlenecks and waiting a few days for a decision could mean a customer misses out on a preferable rate. As a lender, we've listened to brokers who consistently highlight frustrations with the time it takes to reach a decision. Our phone lines connect brokers directly to our underwriters. Our underwriters have also been brokers so they provide feedback to ensure cases are presented in a way to ensure faster and more effective decision-making.
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Mike Staton
Director at Staton Mortgages
In all honesty, I havent seen any underwriting service levels longer than expected. Every offer we are seeing is within the lender's published SLA timeframes. The exception to this is the adverse cases we are seeing and also the influx in Right to Buy mortgages due to government intervention. However, our clients are being advised of realistic timeframes and clients are being warned that offers could take up to 4 weeks to be issued, which reduces unrealistic expectations. What we are seeing a lot of though is promises by other brokers to meet unrealistic timeframes. In this industry, if you package a case correctly and put it to the correct lender, 99% of the time it will fly through underwriting, and if it doesn't you can get it escalated. If a client's requirement is a quick turnaround, that should be factored into sourcing and the adviser should be dismissing lenders with poor current service levels. If they aren't doing this then they aren't doing their job correctly.
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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
Managing a property portfolio means juggling more balls than a circus act. Between buying, remortgaging, and dodging bridge loan deadlines, we developers and portfolio landlords rely on timely underwriting to keep new projects afloat. Delays mean more time stuck on eye-watering bridging finance, draining funds earmarked for refurbishments. It’s like watching your renovation budget melt away, one unreturned email at a time. The real tragedy? These delays don’t just hurt developers and landlords; they hurt tenants. Rising project costs push rents higher, while fewer properties enter the market. It’s a vicious cycle: tenants face inflated prices because lenders can’t seem to keep up with their lending performance. Either way, the rental market feels the squeeze. In a housing market already on the ropes, underwriting delays are the last thing Britain’s beleaguered renters need.
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Dennigan Tyson
Mortgage & Protection Adviser at Pia Financial Solutions
I think it is a balanced arguement and cases these days can be complex, espceially within the BTL remit and Ltd company sphere. It is however, becoming very stressful for advisors when rates are increasing and there being a change of product with a change of rates. I think it's made worse for those lenders who give very short notice!

This isn't something new however, and as soon as rates start to lower, lenders are often able to cope with processing times with applications.