Turned down at the last minute!

muffin07

I appreciate this is to be posted in the Mortage section, but I'm hopeful that by placing my post in this section also, I may get more response. Thanks for any help.

Can anyone help???


We sold our house a couple of months ago and bought (stc) about 4 weeks ago. Our current mortgage lender is Chelsea and for the last 2 weeks they have said that porting our current mortgage across for our new house wouldn't be a problem and we received an AIP. My husband is self employed and they came back to us about a week ago suggesting that he needs to have 3 years accounts otherwise their "system" says that the mortgage is unaffordable! He has 2 years and 11 months!!!!!!!! They then went away and said they will be able to sort it out anyway and it went to the underwriters. They left us on pins for a couple of days saying all was going fine, only to tell us that they can't overide the "system" and so we can't have the mortgage!!!


We were due to exchange on Tuesday!! We are in a very awkward situation as we need to move asap (I won't go into the fine detail but it involves health reasons and financial.) Our chain is very small thank goodness and yet our buyer has already waited 2 months as the initial house we were purchasing pulled out. We are really worried that it may all fall through if it means our buyer and seller now have to wait a further 2 months and all because we need to wait until we have 3 years accounts and the "system" says our mortgage is affordable!!!


So, we have seen a mortgage advisor at the estate agents from who we have sold with and we weren't impressed or overly helped and it has left us worrying somewhat. He suggested that we may be able to get a mortgage with another provider, yet we will incur a hefty get out payment with Chelsea and it may also involve having to pay off our loans and debts to be accepted!!!!! Oh and then there is his commision payment!! It just isn't realistic and could put us in a financial mess if we were to have to do that and so the only option is to wait a further 2 months and hope that our buyer and seller are prepared to wait also. That said, we can't really wait that long.......


Is there anything we can do????? Is there anyway of getting around Chelsea's "system" so that we can stay with them and get accepted? Or, can we go with someone else whom wouldn't require us to pay off debts beforehand etc and would accept our 2 years and 11 months accounts?


Thanks for any advice and help - truly appreciated and much needed.

ruggedtoast

Can you just wait another month?

G_M

Your choices:
1) wait out the 3 years and then buy..... assuming the property is still there
2) stay with the rip-off estate agency mortgage adviser, pay their rip off fee, and see what alternative mortgage they come up with. Pay the Chelsea penalty
3) go to an independant mortgage broker who doesn't charge a fee; Pay the Chelsea penalty
4) stay where you are

poppysarah

muffin07 wrote: »

! We are in a very awkward situation as we need to move asap (I won't go into the fine detail but it involves health reasons and financial.)

And will these reasons make you a worse mortgage risk?

muffin07

ruggedtoast - it will be realistically 2 months and if we have no choice then yes, but it could mean losing the lot!

GM - thanks and I will look into independant advisors, we just went to see the one at the agents in a panic and really aren't amused at his "fees."

Poppysarah - No, if the timing were right and we had 3 years accounts, Chelsea will give us the mortgage we need and beyond what we need - this is the madness, if we only we had that further months account.....

Just wondering if there is anyway around only having 2 years and 11 months..

taxsaver

Speak to your accountant about drawing up a set of accounts for the last year which only has 11 months in it; provided the 12th month isn't your 'best' month and given that you say you can easily afford the offer you want then it shouldn't affect the underwriting but will give Chelsea what they need. After it's all sorted your accountant can still do the usual 12 month set for submission to the tax man as adding on the last month won't take him long at all.... in all it shouldn't cost you a great deal extra.

Hammyman

muffin07 wrote: »

My husband is self employed and they came back to us about a week ago suggesting that he needs to have 3 years accounts otherwise their "system" says that the mortgage is unaffordable! He has 2 years and 11 months!!!!!!!!

No., he has 2 years. They will mean complete tax accounting years running from April 6th to April 5th.

hcb42

have you actually spoken to someone with decision making authority in the Chelsea? Or has your Advisor?

Are the urgent reasons going to have an impact on the application - it does seem quite harsh decision. will the third year's figures be favourable when they are produced.

soup

Is there any point going to a book an appointment with a new independant mortgage advisor now ?
They may well want 3 years accounts too.
By the time they have given you an answer and done their own valuation and checks on you then a month will have ticked by anyway.
I'd explain to your buyer and purchaser exactly the issue here and hope they understand and wait the extra month.