RBS mortgage application nightmare

FishThrower

Hi,

This is going to sound like a rant, I have been having no end of problems applying for a mortgage through RBS. I have been on the mortgage stage approaching two months, and I haven’t even got upto the property valuation stage yet. Here are the events thats happened

1) Applied for mortgaged through a RBS branch

2) Handed in documents on the 2nd day

3) Day after I received a SMS explaining that the documents have been accepted

4) I then left it for two and a half weeks, thinking there were background checks being done, eventually I phone them up asking what was going on., they said they were waiting for three more documents from me. They have also managed to lose the evidence of deposit. They didn’t even notify me that something went wrong.

5) I needed to get RBS to send my accountant a reference as I didn’t have 12 months of hard printed accounts with me. RBS sent the letter, but it never arrived by snail mail to my accountant, my accountant spoken to RBS asking them to fax it through, and surprise surprise, it never came.

6) I managed to get hold of a hard copy of my printed accounts and submitted them through a RBS branch

7) Today I got a phone call from RBS explaining that they can only lend me less than they originally stated (about £8000 less) and they said they I need to put down an extra £8000 down as deposit. I can understand why as my accounts only show 11 months of trading rather than 12, as I was trading under a different name before hand.

Are underwriters more interested in NET PAY? Or Turnover when applying for a mortgage when your self employed?.

Has anyone else also experienced complete incompetence with RBS? I have spoken to a couple of friends who are brokers, and they both said RBS are known to mess around and take forever doing anything.

happybroker

certainly turnover wouldn't be a factor, I could turnover £2m pounds a month and still make a loss (look at the banks themselves).

Some will look at your drawings, some will look at your net profit. The bank would be looking for the last set of finalised accounts, a change in name of the company should be taken into account if that's all it is.

RBS only underwrite when they have all information to hand, I doubt you will get much further with them I'm afraid. Sorry I can't be more positive.

FishThrower

Thanks for the reply.

Basicily I was trading under a umbrella company for three months before I started my LTD company up, as im a contractor.

On the first month of my LTD accounts, I didnt do any trade as I was still trading under the umbrella company for a month.

I have given RBS all of my umbrella companies pay slips, including the missing non trading month of when my company was started.

Do you think the RBS underwriter would add the NET take home from the payslip onto my annually accounts?