Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • jdc23
    • By jdc23 18th Apr 17, 11:19 AM
    • 45Posts
    • 4Thanks
    jdc23
    Broker Error - What to do?
    • #1
    • 18th Apr 17, 11:19 AM
    Broker Error - What to do? 18th Apr 17 at 11:19 AM
    I am struggling with my broker and don't know what to do. I thought we were a simple application as we have good employment histories and no adverse issues. So far the broker has placed us with Halifax, to which we received a quick decline.

    We now have an application in with Natwest and our broker has made an error with my bonuses. My assigned broker is out of the office till 20th, so I am dealing with her assistant.

    This year I received £2325 in discretionary bonuses. I was unaware these were even being included in the figures on the application. Today I have discovered that they are being included and also my broker has included them as Guaranteed Bonuses.

    Natwest have now requested two years’ evidence of these Guaranteed Bonuses and obviously I cannot provide it. The brokers assistant has told me that they are relying on these bonuses for affordability and if I cannot provide evidence it will likely decline! I don’t know what to do.

    I have checked our borrowing with the online Natwest Mortgage calculator. We are trying to borrow £225,950. If I put in just our basic salaries and commitments and no bonuses it says we can borrow up to £249500. I may be missing something here, but why then is my broker insisting that my bonuses must be included?




Page 1
    • ACG
    • By ACG 18th Apr 17, 11:32 AM
    • 15,051 Posts
    • 7,611 Thanks
    ACG
    • #2
    • 18th Apr 17, 11:32 AM
    • #2
    • 18th Apr 17, 11:32 AM
    Send the assistant an email with a screenshot of the calculator based on the figures you have entered.

    Explain that you have not had the bonuses for 2 years and if they are needed, the broker should have obtained evidence for them prior to applying.

    You expect them to resolve this issue ASAP as they are causing you unnecessary stress and worry.

    Assuming you have entered the information correctly you should be fine. The assistant could be just trying to scare you in to providing the documents to make his/her life easier.

    Natwest are quite a nice lender in general and should be able to get there assuming affordability stacks up.

    DO NOT call natwest yourself, it could cause more harm than good but I do think it can be rescued based on what you have said.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • kingstreet
    • By kingstreet 18th Apr 17, 11:32 AM
    • 31,589 Posts
    • 16,873 Thanks
    kingstreet
    • #3
    • 18th Apr 17, 11:32 AM
    • #3
    • 18th Apr 17, 11:32 AM
    Did you include 3% of the equity loan as a cost?

    Any ground rent and/or service charges?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • ACG
    • By ACG 18th Apr 17, 12:06 PM
    • 15,051 Posts
    • 7,611 Thanks
    ACG
    • #4
    • 18th Apr 17, 12:06 PM
    • #4
    • 18th Apr 17, 12:06 PM
    Is this not a "normal" purchase?
    If that is the case, they have still messed up with the bonus, but you might need to look at an alternative lender if it does not stack up.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • kingstreet
    • By kingstreet 18th Apr 17, 12:22 PM
    • 31,589 Posts
    • 16,873 Thanks
    kingstreet
    • #5
    • 18th Apr 17, 12:22 PM
    • #5
    • 18th Apr 17, 12:22 PM
    Is this not a "normal" purchase?
    If that is the case, they have still messed up with the bonus, but you might need to look at an alternative lender if it does not stack up.
    Originally posted by ACG
    No. If you look back through the OP's threads you'll find one which says it's a HTB EL application.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • jdc23
    • By jdc23 18th Apr 17, 12:38 PM
    • 45 Posts
    • 4 Thanks
    jdc23
    • #6
    • 18th Apr 17, 12:38 PM
    • #6
    • 18th Apr 17, 12:38 PM
    Thank you for the responses. I'm sorry, I should have been clearer. This is a Help to Buy Equity Loan Purchase.

    I have not included the Equity Loan at 3%. This works out at £1799. How do input this in the calculator. There is ground rent which works out at £28 monthly, I have included this as "Other committed expenditure."
    • kingstreet
    • By kingstreet 18th Apr 17, 12:39 PM
    • 31,589 Posts
    • 16,873 Thanks
    kingstreet
    • #7
    • 18th Apr 17, 12:39 PM
    • #7
    • 18th Apr 17, 12:39 PM
    You input 3% of the loan, divided by twelve.

    You also enter any ground rent & service charges.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • jdc23
    • By jdc23 18th Apr 17, 1:08 PM
    • 45 Posts
    • 4 Thanks
    jdc23
    • #8
    • 18th Apr 17, 1:08 PM
    • #8
    • 18th Apr 17, 1:08 PM
    Thank you for your help. I have now included the equity loan and ground rent in the Other Committed Expenditure, it worked out as £177 monthly. I have checked these figures with both the Natwest website calculator and the Natwest Intermediaries calculator.

    On the Natwest website calculator I put our deposit + the total equity loan amount as the deposit.

    On the Natwest Intermediaries calculator I put Loan to Value as 75%

    Both calculators state we can borrow up to £249,700. Without bonuses included.

    We are looking for a mortgage of £225,950. I will screenshot and ask for an explanation from my broker.
    • BLOW FLY
    • By BLOW FLY 18th Apr 17, 1:23 PM
    • 91 Posts
    • 73 Thanks
    BLOW FLY
    • #9
    • 18th Apr 17, 1:23 PM
    • #9
    • 18th Apr 17, 1:23 PM
    IMHO I think the mortgage calculators on lenders web sites can be a bit misleading and are there as a bit of a teaser / tempter to get people interested in applying for mortgages with them.

    From the lenders POV the more people they get applying the more chance they have of selling mortgages.

    So the collateral damage done by having to decline a few on that basis doesn't really matter as they will have probably gained more than they lose.

    Just a personal opinion of course.

    BF
    • ACG
    • By ACG 18th Apr 17, 2:40 PM
    • 15,051 Posts
    • 7,611 Thanks
    ACG
    Ignore me then completely. I do not do HTB EL mortgages.
    Kingstreet is your man.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • jdc23
    • By jdc23 18th Apr 17, 2:41 PM
    • 45 Posts
    • 4 Thanks
    jdc23
    I emailed over my screenshot of the calculator. I have just received an email in reply agreeing that we do fit affordability without my bonuses included. NatWest are going to assess us without my bonuses included. All very strange!
    • kingstreet
    • By kingstreet 18th Apr 17, 2:55 PM
    • 31,589 Posts
    • 16,873 Thanks
    kingstreet
    If you declare a piece of income, the lender will want to assess and verify it.

    We wouldn't enter that income if it wasn't required as the mortgage is affordable without it and it couldn't be properly evidenced.

    You need tremendous attention to detail to do this job properly and some people just don't have it. Once we have been out to "sign-up" a client, the pre-submission preparation can run to hours ensuring every detail matches the selected lender's criteria and we can answer any aspect of the applicant's circumstances should it be put to us post-submission.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • jdc23
    • By jdc23 20th Apr 17, 1:14 PM
    • 45 Posts
    • 4 Thanks
    jdc23
    So it looks like there is quite a variance between the Natwest calculators and the achieveable borrowing. Just had an email from our brokers assistant saying that Natwest have assessed our application without my bonuses and the maximum they could lend would be £206,767. This is a shortfall of just over £20,000 from what we need to purchase the property.

    The broker is now insisting that I need to find some evidence of my bonus income so they can make up the shortfall. However, if I calculate this out Natwest are only lending at 4.01x income, so therefore even if I could evidence bonus income for the last two years this would only come to just over £9,000.

    I don't know what to do? Should I tell my broker to find another lender? If I do this will be our 3rd attempt at a mortgage application and I'm getting a little worried about all the search history.
    • ACG
    • By ACG 20th Apr 17, 2:29 PM
    • 15,051 Posts
    • 7,611 Thanks
    ACG
    Affordability calculators are not that simple. The lower part of your income will give a lower multiple than the higher bit - the lower bit covers the basics (food, bills etc).

    As there is no calculationm made public it is impossible to work it out for yourself.

    If your broker is asking you for something that does not exist, tell them. If they are asking for something that does exist then give it to them and see where you end up.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • kingstreet
    • By kingstreet 20th Apr 17, 2:43 PM
    • 31,589 Posts
    • 16,873 Thanks
    kingstreet
    If the amount being offered doesn't match the affordability calculator, are there any credit commitments which have recently been reduced or repaid?

    If the lender is seeing out of date data on your credit file, it may think you have more credit than you do/will from completion and will reduce your mortgage affordability accordingly.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • jdc23
    • By jdc23 20th Apr 17, 3:54 PM
    • 45 Posts
    • 4 Thanks
    jdc23
    There is lot showing on our credit reports that has actually been repaid. There is also a couple of credit card balances outstanding that we have told the broker will be cleared by completion.

    I have been very clear about these though and have confirmed all in writing.

    I know the calculators can only be a guide, but I thought they were reasonably accurate. The difference between our calculated figure and our actual offered borrowing is £43,000 though.
    • kingstreet
    • By kingstreet 20th Apr 17, 3:58 PM
    • 31,589 Posts
    • 16,873 Thanks
    kingstreet
    The only time I ever find broker calculators to be out compared with the full application is when there is credit which has been repaid/reduced and the lender is still seeing old data, as I said.

    Not so long ago we had a case where the old car finance had been repaid, but not updated on Equifax and a new car finance plan started. The result was the lender was counting both agreements as ongoing.

    Once we knew, we could action it, but not many people obtain all three versions of their credit file and fully understand what lenders are seeing when they search.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • jdc23
    • By jdc23 20th Apr 17, 4:55 PM
    • 45 Posts
    • 4 Thanks
    jdc23
    When I check my Experian credit report there is about £5000 showing as outstanding that has actually been repaid. I am concerned that the lender could be considering all this as still outstanding and that this is hurting our affordability. Maybe I should confirm this with our broker again.
    • kingstreet
    • By kingstreet 20th Apr 17, 7:35 PM
    • 31,589 Posts
    • 16,873 Thanks
    kingstreet
    When I check my Experian credit report there is about £5000 showing as outstanding that has actually been repaid. I am concerned that the lender could be considering all this as still outstanding and that this is hurting our affordability. Maybe I should confirm this with our broker again.
    Originally posted by jdc23
    Yes, but what does your Equifax file say as that is what NatWest searches, not Experian?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

77Posts Today

1,733Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See https://t.co/IQ8f0Vyetu RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin