Application for change of title declined

C8LNJ

Hi,

I recently applied to my mortgage provider remove my ex partners name off my mortgage and was declined.

Their reason for declining was : We cannot count your shift allowance or location allowance as a stable income.

Now my mortgage is relatively small currently sitting at just over £120k.

My income PA everything included is in excess of £55kpa.

I have a good credit rating so nothing wrong with that.

Im half way through my 3yr term with the mortgage provider and they want £3600 as a penalty if I change lenders now. Which I feel I may have to to enable closure on this matter.

They have said I can challenge their decision by writing to them, I will do so but apart from pointing out the numbers on my pay slips which they have already been sent im at a loss as to what to do.

Any help appreciated.

GMS

A lender would prefer to have 2 people to chase in the event of a default than 1. They will want to make 100% sure that you can cover the mortgage.

If you do not meet their criteria and affordability then they will not allow it. Income is one factor but they will also look at credit commitments and any dependants. Do you have either?

If you bank with them then it would help an appeal as they would be able to see your financial management.

C8LNJ

Didnt think of that, but in answer to your questions:

Credit commitments - I have car finance, £340 a month which is through a company scheme full maintenance contract lease low APR. 2x 0% finance loans due to end next month for small amounts £35 each. No CC's or store cards I pay cash unless theres an incentive.

No dependants.

I dont bank with them. My own bank will give me a mortgage in a second however in doing so will incur around £5000 in fee's!!

Im not sure how to go about this.

Thrugelmir

C8LNJ wrote: »

My income PA everything included is in excess of £55kpa.

.

What's your basic pay excluding car, shift allowance etc.

C8LNJ

Thrugelmir wrote: »

What's your basic pay excluding car, shift allowance etc.

Around 29k.

Why shouldn't shift allowance get included, I work shifts, Its part of my wage!!

GMS

C8LNJ wrote: »

Around 29k.

Why shouldn't shift allowance get included, I work shifts, Its part of my wage!!

Some lenders will allow it, some won't. Seems like your lender is not one who will do.

Their argument may be that you could have your shifts could be stopped at any time so you would then revert to basic salary.

29k as a basic but you say 55k overall. Does overall mean tax credits and child benefit in addition to shift allowance?

C8LNJ

GMS wrote: »

Some lenders will allow it, some won't. Seems like your lender is not one who will do.

Their argument may be that you could have your shifts could be stopped at any time so you would then revert to basic salary.

29k as a basic but you say 55k overall. Does overall mean tax credits and child benefit in addition to shift allowance?

55k minimum, I work offshore on an oil/gas production platform.

My basic is 29k
Shift allowance - 12k
Offshore location allowance - 14k

Then theres OT & Bonus which is not consistent but is generous.

My shifts wont ever stop and revert to basic, its impossible as im employed to work only in that location.

I cant see why they would decline me, I didnt get any other explanation other than they cannot include my shift/offshore allowance.

GMS

C8LNJ wrote: »

55k minimum, I work offshore on an oil/gas production platform.

My basic is 29k
Shift allowance - 12k
Offshore location allowance - 14k

Then theres OT & Bonus which is not consistent but is generous.

I cant see why they would decline me, I didnt get any other explanation other than they cannot include my shift/offshore allowance.

That is the explanation. They will not allow allowances as income.

If you appeal include a full explanation of how your income is derived. It is impossible for you to work offshore without having the allowances paid. If you worked in a local factory you may get shift allowance but this could be withdrawn. The nature of your job means it will always be paid.

Have you looked into your mortgage fully, as in rates etc. Could now be a time to consider changing lenders and getting a rate which you could look to fix for a longer term, possibly covering the fees incurred to change?

You may well find a solution elsewhere but also appeal to your current lender. Worst answer you will get is no at which point you coule look elsewhere

BobQ

From their point of view £120K may not be seen as "relatively small" when its 4 times your basic pay.

How did this compare with your joint income/joint basic pay when you originally took out the mortgage?

How secure would they think your job is in the current climate? How guaranteed would they view your allowances?

I can see why you are annoyed at their decision but ultimately they are making a judgement about risk and having your partner to call on in extremis will certainly reduce their risk.

C8LNJ

GMS wrote: »

That is the explanation. They will not allow allowances as income.

If you appeal include a full explanation of how your income is derived. It is impossible for you to work offshore without having the allowances paid. If you worked in a local factory you may get shift allowance but this could be withdrawn. The nature of your job means it will always be paid.

Have you looked into your mortgage fully, as in rates etc. Could now be a time to consider changing lenders and getting a rate which you could look to fix for a longer term, possibly covering the fees incurred to change?

You may well find a solution elsewhere but also appeal to your current lender. Worst answer you will get is no at which point you coule look elsewhere

They allowed it no problem in the 1st instance when they set it up!!

I will appeal and give a good detailed explanation of my income, thanks for the advice.

I could easily get a reduced rate with another lender however the current lender wants £3625.86 as the early settlement fee. This plus a new product set up fee would be approaching £5k, I wouldnt get close to covering all those fees with a reduced rate.

Bigsmak

Why don't you go and see a Mortgage broker or an IFA who are trained to handle this kind of thing?