Declined after 5 weeks - need to move fast, help!!!

Helen1965

Hi, I'm new to this forum but hoping someone can advise me.

Had an offer accepted on a house at the beginning of April. Sellers are emigrating and we're renting our current house out as the market is really slow in this area, so there is no chain. Sellers want to complete by 24th July, which we didn't see as a problem.

Anyhoo... initially went to a local mortgage adviser as DH and I are both self employed. We also needed someone who would take tax credits and carers allowance into account as we have a disabled son and this makes up big percentage of our income.

The adviser found us a deal with Abbey and we passed the initial credit checks and got a DIP no bother. However the application came back declined due to a £17 mobile phone default registered by Lowell in 2005. (I have now paid this). The adviser said they wouldn't reconsider then went to Beacon for a quote, which I wasn't happy with so I contacted L&C on 29th April to see whether they could find anything.

The L&C adviser came back to me the same day with a KFI from RBS. I asked whether they were OK with the default and also the tax credits income and he said that as long as we could show bank statements with all the income that was fine. We sent off 3 months bank statements and our self assessment tax returns as evidence. Two weeks later I rang RBS to be told that they needed official tax certificates for 2 years as the online filing printouts weren't acceptable. We duly rang our tax office to request them - mine arrived a week later, but DH's were lost in the post and after several phone calls and two visits to the tax enquiry centre we eventually managed to get them to the adviser who faxed them through to RBS last Friday.

Well.. I rang RBS today as valuation fee still hadn't been taken only to be told that the mortgage has been declined on affordability and the adviser was told on 5th June!!! The adviser has asked for clarification that DH's tax certs were taken into account but where do I go from here if they were???

I don't know whether its worth trying a personal visit to an Abbey branch with proof the £17 default has been paid? Does anyone else take child tax credit into account? (its over £8,000 a year due to son getting high rate DLA).

Thanks for reading if you got this far.

Helen

emmahane

hi, you could almost be us, we have tax credits and dla and currently going through the process witrh abbey, i can tell you that c& g and rbs dont take tax credits, but natwest, hsbc and yorkshire bank do, abbey also dont take into account dla

emmalita

Natwest have told me that they take working/child tax and child benefit into account but not carers allowance.They also said that they take dla into account although i personally dont think they should if its for child. Let us know how you get on im in a similar situation myself.

Helen1965

Thanks Emma. Thing is I specifically asked the broker if RBS were happy with the tax credits and he said that as long as we could show bank statements with that money going in regularly it was fine. I can't understand why he even recommended we apply to them if they don't take tax credits. I'm so annoyed cos we've wasted 5 weeks waiting for a decision from them.

Helen

emmalita

Helen, was it a default or late payment?

emmalita

i know bet ur fed up.I dont understand why RBS dont but Natwest do because they are owned by them

happybroker

what's the loan to value % Helen?

benjo

sent you a PM

Conrad

Helen your broker sounds a bit ropey - I guess he's fee's free so perhaps doesn't have sufficient time to research each new enquiry. It takes me a lot of time and effort to research a new enquiry which is why we have to charge a modest up front fee - if people want my full commitment, I expect thiers in return. No professional can work on a commission only basis - afterall many home sales fall through so the broker earns zilch.

Conrad

PS - I've just noticed it's L & C. I guess they are ok on straight forward cases.

Helen1965

Its 70% LTV

Helen