The Hidden Cost of Paperwork

The cost of poor mental health to UK employers now stands at £51bn annually, a slight decrease from £55bn in 2021 but still a significant increase from £45bn in 2019 (newsbywire.com, 2025). When we think of mortgage underwriting, we often focus on the numbers: credit scores, income statements, and LTV ratios. However, behind every loan approval or rejection, there is an underwriter navigating an immense volume of paperwork under intense pressure.

The Daily Struggle: Our Observations

Underwriting begins with sorting through numerous documents, trying to make sense of them and get everything in order. The problem? Many underwriters are still using outdated systems that make the process even harder. Slow software turns an already time-consuming, heavily manual task into a more frustrating one, adding stress before the real task even begins.

Once the documents are packaged, underwriters carefully review them to ensure all data is verified and meets lending criteria. For instance, manually verifying self-employed income across multiple years using tax returns and bank statements can take hours, especially when documents are missing or unclear. This forces them to go back and request more information, which delays the process and adds to their workload. At the same time, they are keying data into the LOS, another task that requires constant focus and accuracy.

This cycle repeats daily, requiring intense concentration. The overwhelming amount of paperwork, combined with the pressure to make quick and precise decisions, can lead to mental exhaustion, stress, and eventually burnout.

The Mental and Physical Toll of Paperwork

Underwriters face significant mental and physical strain due to the high-stakes nature of their work. Each mortgage application requires multiple decisions that directly impact borrowers and lenders. Over time, this constant cognitive load slows processing times, increases the risk of errors, and contributes to decision fatigue. Underwriters spend long hours reviewing financial statements and keying data into systems, often leading to eye strain, headaches, and body aches. Prolonged screen time, combined with job-related stress, can disrupt sleep and further affect overall health. The pressure to meet tight deadlines while maintaining accuracy creates ideal conditions for burnout. The heavy workload and the serious financial and legal consequences of mistakes make underwriters especially vulnerable to these issues. The combination of mental exhaustion, physical discomfort, and unrelenting pressure makes underwriting one of the most demanding roles in the mortgage industry.

Paperwork is Adding to the Pressure

The Need for Accuracy

Underwriters know that even a single mistake can have serious consequences. Misreporting an applicant’s debt obligations, for example, can lead to an unnecessary decline or require a time-consuming re-evaluation. In extreme cases, errors caught late in the process can result in reissuing loan documents, delaying completion dates, and increasing origination costs. Whether it’s a regulatory penalty, financial loss, or legal issue, the fear of making mistakes creates constant stress, contributing to anxiety and emotional exhaustion.

Increased Complexity

As regulations evolve, underwriting has become more complex. New lending policies and stricter compliance rules add extra layers of difficulty. Portfolio buy-to-let underwriting is a prime example. When a borrower owns multiple properties with different rental incomes and mortgage structures, manually assessing affordability can take significantly longer. Without software that aggregates these figures efficiently, underwriters may spend hours compiling data before even making a decision. Keeping up with these nuances requires ongoing effort, increasing cognitive overload and stress.

Peak Periods

Certain times of the year bring an avalanche of loan applications, forcing underwriters to work longer hours to meet deadlines. Government incentives, such as increases in stamp duty or first-time buyer schemes, often trigger sudden spikes in applications. These peak periods increase stress and make burnout even more likely. The increased workload doesn’t just affect productivity, it takes a serious toll on mental health, leading to fatigue, frustration, and disengagement.

How Can We Support?

While underwriting will always be a challenging and detail-oriented profession, there are several strategic approaches to alleviating the inherent pressures:

• Promote Work-Life Balance: Supporting flexible working hours and maintaining manageable workloads can prevent burnout and promote long-term productivity. A well-balanced team is more resilient and better equipped to handle the demands of the job. Leaders who are focused on providing conditions conducive to work-life balance for their representatives save money on expenses, experience less absenteeism, and cultivate a more loyal and profitable workforce (Patil and Kumawat, 2023).
• Offer Mental Health Resources: Providing access to mental health services, including counselling, stress management programs, and mental health days, equips underwriters with the tools to manage job-related stress. This ensures a healthier, more sustainable workforce capable of maintaining high performance under pressure.
• Automate Routine Processes: Implementing automation tools to handle manual data entry and standard processes allows underwriters to focus on higher-level tasks, such as risk assessment, rather than getting bogged down by administrative work.
• Upgrade Technology Systems: Transitioning from legacy platforms to modern, integrated systems can significantly streamline document management, improving efficiency and reducing time spent on repetitive tasks. Investing in advanced technology empowers underwriters to focus on critical decision-making and enhances overall workflow. For instance, lenders using AI-driven document recognition tools can automatically flag missing paperwork, reducing back-and-forth communication with brokers. This minimizes underwriting delays and ensures a more seamless borrower experience.

Conclusion

Deloitte’s findings reinforce the financial and ethical imperative for businesses to invest in mental health initiatives. Early interventions—such as cultural shifts toward openness, education, and proactive mental health policies—offer the highest return on investment.

Underwriting plays a pivotal role in the mortgage industry, yet the overwhelming volume of paperwork, coupled with the high-pressure nature of the work, is placing significant strain on professionals. As the sector continues to evolve, it is critical to recognize and address these challenges. By strategically supporting underwriters, businesses can cultivate a healthier, more resilient workforce, resulting in enhanced decision-making, reduced error rates, and a more robust, sustainable lending environment that benefits all stakeholders.

Author: Author: Jahnavi Chhabra, Business Analyst at Digilytics AI

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