1 in 10 chance of fastrack falling through?

Blythe007

Hello All

I recently moved back to the UK after living and earning abroad. I am now the director of a UK company I set up myself nearly a year ago.

Despite having 70% of the house value as a deposit, with only one year's accounts , I was knocked back by most lenders and told to come back when I had a minimum of 2 year's accounts.

The Halifax have just offered me a "fast track" and I understand the principle. However, here is where I would value your insights as I am getting mixed messages:

The Halifax tell me despite all my hefty deposit and good 1st year figures (all the info I gave them was accurate), I would definately be refused if my file was the 1 in a 100 picked out at random to be checked as I would be asked for 3 year's accounts.
The Halfax assure me that were this to happen, it would happen in the first 72 hours (unless I did something silly like messing up my credit score before exchange of contract)

1 in a 100 is worth a punt!

However, a bank manager at another highstreet lender, who had nothing to sell me so he seemed genuine, warned me that the chances of being asked to provide 3 year's accounts was nearer 1 in 10, and more worringly, that this could happen at the very last moment rather than during the first 72 hours.

The risk of being refused, and this at the very last moment - (could i even lose my deposit?) - makes the Fast Track appear a bit slippery....

I could stick to buying something smaller than I want with the cash I have, but it will be tough.

Is Fast Track as slippery?
Am I worrying unnecessarily?

I would value your opinions and experiences

Blythe

brit1234

Blythe007 wrote: »

Is Fast Track as slippery?

Its dodgy, its the slightly amended self cert/liar loan scheme which was very abused.

Can you not wait a year, house prices continue to fall, you get your 2 years accounts and a far cheaper house.

Senior_Paper_Monitor

I assume you've gone direct (not broker) to Halifax and someone in branch has 'taken a punt'.

If a broker did it they would be risking their licences.

As to the odds - I don't have enough internal knowledge to know their check rate/processes but not sure I'd want to try it.

GMS

Stories like this make me sick. Fast Track is a great tool to speed up applications, not to be abused by people who cannot prove income or fall out of income criteria.

Brokers continually get accused of such practices when infact the lenders are far more guilty of underhand tactics. I have had many fast track applications and every one of them has proof of income on file.

How can lender staff continue to get away with such practices?

OP you need to be careful as you are commiting mortgage fraud if you have declared your income incorrectly. Even if the amount is correct I suspect the number of years accounts will have been exaggerated. You have agreed to the information submitted which if untrue could land you in hot water now and in the future.

There are lenders who will look at applications with 1 years accounts. Could be the way to proceed.

Senior_Paper_Monitor

GMS is absolutely correct - I was being unusually mellow

Have you seen/signed an application - if so did you check the content ?

kingstreet

I would not put a case to a lender I know wouldn't accept it unless it was fast-tracked. I have the same income requirements as the lender and put it on file, regardless of whether the lender asks for it, or not.

Blythe - I would counsel you against this "punt" of yours.

If you apply to Halifax and your case comes up for audit, you'll be unable to prove your income and will have no choice but to cancel your application. This audit can take place anytime in the process,even after your mortgage offer has been issued!

The details of the application will be lodged on the National Hunter system and if you then apply to a second lender, they will see details of the Halifax application and you may then find yourself subject to more rigorous checking than before. Hunter is an anti-fraud device which compares the information on different applications to identify suspect applications.

http://www.nhunter.co.uk/

Kensington offer mortgages to those with only one years accounts, so there should be no need to contemplate attempting mortgage fraud. Find yourself a decent independent or whole market mortgage broker.

nollag2006

brit1234 wrote: »

Can you not wait a year, house prices continue to fall, you get your 2 years accounts and a far cheaper house.

How long have you been waiting for this "crash" now brit? Think of all the money you have wasted in rent.

I wouldn't have much confidence in the predictions of someone who called a 50% drop in house prices from their peak to Christmas 2009.

How did that work out for you??

:rotfl:

Blythe007

First of all, thanks so much for all your insights. Your posts have made me realise I may not have been given the full picture by by lender.

Firstly, am I right in understanding that the Halifax mortgage advisor may have lied on my application? I gave her the facts - I have worked for myself for 10 years, I am just closing my French company and the new UK company is just a year old. I was very clear that I only have 1 year's UK accounts.

Am I also right in understanding that she lied again when she said the claim could only fall through in the first 72 hours? As it appears this could happen at any time, even at exchange of contract - or even after that? And that I would be "in hot water"!

If Kensington would consider an application with just one year's accounts, I will try there, thank you for the tip!

Does anyone know Kensington or of any other lenders that might consider a loan with just one year's accounts when I want to borrow about half what i have as a deposit?

Thank you in advance

TMSL

Have a look at Principality BS as well as long as you have at least 25% deposit they will lend with 1 years accounts, better service and rates than Kensington as well. Good luck.

Blythe007

Merci! I will look them up now!