MSE News: Mortgage door slammed shut on the newly self employed

pawpurrs

I agree self cert should go, but I think each application should be judged on their own merits, not just computer says no! have written such a letter off to my bank.

herbiesjp

_Andy_ wrote: »

Now that is dramatic!! :rotfl:

herbiesjp

Premier wrote: »

As your signature says you are a mortgage advisor, perhaps you'd care to divulge some information for the benefit of the rest of us?

... or are you just here touting for business???

I think you will find lots of people on here with the same signature.

Now does that post say to contact me? Nope

There are plenty whole of market advisers in the UK to choose from

I find your post quite offensive actually - but I shall treat it with the contempt it deserves - especially after I have been posting for over 5 years!

Maybe you missed this bit:

but it will depend on the whole scenario and not just the accounts

Without knowing the whole scenario nobody can say what options may be available - next time you are ill, give your GP only part of the information and see if they can GUESS what the problem is

bylromarha

pawpurrs wrote: »

I agree self cert should go, but I think each application should be judged on their own merits, not just computer says no! have written such a letter off to my bank.

Totally agree.

OH been self employed for 9 yrs, some of those great years, some not so great.

Not once have we missed a mortgage payment.

Seems our only option will be to size up whether its a good 2 yrs of records or poor 2 yrs of records when it comes to remortgaging as to whether we change mortgage provider or not-2 yrs ago time we had to stick with Abbey as poor set of records. We figured better an expensive mortgage than no house...

Legalised-victim

Incredible, isn't it? If only the bankers and financiers had initiated this type of scrutiny between themselves first? It was their 'free for all' and manipulation of the money-market that allowed self-certification to run so wild. Greed bred greed. Perfectly 'ordinary' people began to believe they were worth more than they actually were, and that their personal financial prospects would continue to escalate ad-finitum. Now, the bankers have put a much tighter bridle on the runaway horse, and its starting to chafe.

Eyesparky

Legalised-victim wrote: »

Incredible, isn't it? If only the bankers and financiers had initiated this type of scrutiny between themselves first? It was their 'free for all' and manipulation of the money-market that allowed self-certification to run so wild. Greed bred greed. Perfectly 'ordinary' people began to believe they were worth more than they actually were, and that their personal financial prospects would continue to escalate ad-finitum. Now, the bankers have put a much tighter bridle on the runaway horse, and its starting to chafe.

Don't fall for the line that the credit crunch has anything to do with poor lending to the UK domestic market. It is entirely derived from our noble institutions making highly leveraged bets on unsecured over the counter derivatives, some of which involved re-bundled US mortgage strips. The feeding frenzy that needed fuel to meet the needs of these debt instruments led to a massive increase in sub prime lending in the US. The spin may have created the illusion that the blame lies with irresponsible borrowing in US mortgage markets but that is merely smoke and mirrors. There is no doubt that there has been plenty of over lax lending practices in recent years but the banks are throwing many healthy babies out with the bathwater at the moment.

Eyesparky

DanMac wrote: »

I am in a bit of a crazy situation at the moment because of this purge on the self-employed. I was promoted to a directorship at an SME, gaining a good jump in salary at the time. I have been on the rubbish std variable rate with my current mortgage provider for about 12mths and am looking to remortgage to a tracker. The ING direct one looked ideal with comparatively low costs of set up. I got through a couple of stages only to find out that because i am a director i am now classified as self-employed by their underwriters.

This means that they require 2 years tax returns (not done any before) and I will be lodging my first one shortly but clearly it is impossible to satisfy the 2 years. My argument is that seeing as i was looking for just over £50k and my previous salary of about £25k would have been more than enough to be approved, why should it be that now i can't get a mortgage which if i wasn't on the directors list i would have been approved for without hesitation?

I offered to provide 2 years worth of pay slips or as many bank statements as they like, but a repeated "i'm sorry but you are classed as self-employed and so the only acceptable proof is 2 yrs tax returns" was all i got. This is absolutely crazy. I am a director. I get paid a salary, but have no additional income (eg shares in company or whatever bonuses). I can prove my income to be sufficient over a period going back as long as they like but I am not given the chance.

Are there any mortgage lenders who do not just broad brush all directors as self-employed and then treat them like a sole proprietor who has just set up his own company? The thing is, i have no authority regarding salaries, bonuses or whatever and am just paid a salary like i was previously, proof of which is easy to provide.

Edit: (i am going to post this as a new thread for best chance of most help)

Surely you are still an employee and are still paid PAYE. As you have no equity in the company and hence no dividend income, tax returns seem unnecessary. Do you still not get PAYE pay slips? The bank seem to have made incorrect assumptions about your status.

Edit: Didn't notice you had started a separate thread.

Premier_2

herbiesjp wrote: »

I think you will find lots of people on here with the same signature.

Now does that post say to contact me? Nope

There are plenty whole of market advisers in the UK to choose from

I find your post quite offensive actually - but I shall treat it with the contempt it deserves - especially after I have been posting for over 5 years!

Maybe you missed this bit:

Without knowing the whole scenario nobody can say what options may be available - next time you are ill, give your GP only part of the information and see if they can GUESS what the problem is

People come here looking for help & advice. Preferably help & advice a little bit better than "first cross my, or my fellow professionals, palms with silver ... "

How about asking the questions you need, if any, and giving some help and advice for free like most people on here?

herbiesjp

If you care to read my 6,997 soon to be 6,997 posts - I'm sure you will find lots of free advice

And no - I'm sorry to disappoint you, I am not going to rise to your bait and start arguing on a forum board no matter what you type

People come here looking for help & advice. Preferably help & advice a little bit better than "first cross my, or my fellow professionals, palms with silver ... "

How very funny - you obviously must disagree with Martin's view as well - hey ho, you can't win them all

Premier_2

herbiesjp wrote: »

...

How very funny - you obviously must disagree with Martin's view as well - hey ho, you can't win them all

What are you on about? Martin doesn't endorse charging people to save money or advertising on his site

...The site never charges to save people money, nor does it take any advertising ...

http://www.moneysavingexpert.com/site/about-the-site