Moving a mortgage but they changed the rules

jamieloft

Hi

I moved my mortgage to Barclays about five years ago but now want to move house.

I am an IT contractor using a limited company as my employment model.

Barclays recognise that I earn enough about £6k a month after tax to qualify for their premier banking account. However when I came to apply for a morgage they would only recognise the figures provided through my limited company.

This meant that I don't qualify to move my mortgage as my income isn't high enough to cover the mortgage.

I have offers for a mortgage else where but I have lifetime tracker at .59% so moving the mortgage is an expensive option.

So finally to my question.

Is it worth complaning to Barclays using the FSA rules around treating customers fairly or am I just going to have to bite the bullet and move to a new morgage company?

I hope that makes sense.

harvey115

Hi

You are on a very good rate!

Barclays would class you as Self-Employed and consider the pay from your company as your only salary, so its not a contractor friendly lender from this perspective.

I would consult a broker in this case because the requirements are quite tight (self-employed). If you have 3 years worth of company accounts then you should not have many problems. Otherwise you would need to use your contract (6 months rolling contract etc) as a means of earning to get a mortgage.

I am also working in similar conditions as yourself and I went to Contractor Financials people. So far I have an AIP from them by only using my contract. I am still finalising my house deal so have not applied for the full mortgage yet. I think you should give them a call as well to see what they come up for you.

Dave_Ham

Honestly, I do not think you have a chance complaining as they will want you off that rate.

In reality, citing TCF and the fact you are a Premier Customer may tip the scales back to "maybe" on a complaint but still challenging..

Its hard without the figures and all of the information and I am not sure on current Woolwich policy, but if you can raise the deposit for the new place from elsewhere could you get a consent to let and rent the existing place out...?

May be worth an ask?

As you say, there will always be lenders throwing money at you but none will come close to this rate (as I am sure you are aware)

Just in case your mortgage is very small, do not get beaten down on the numbers if your new mortgage is to be a fair bit bigger then on smaller numbers clearly the interest is of less impact.

Good luck

The_J

I've fed your situation into The J's Spectaculator:

Chance of complaint success - 0%
Time spent complaining - 4 months

Ask Barclays what your PAML is (Pre-Approved Mortgage Limit). That is based on account conduct and I've seen a few ridiculous ones so worth a stab.

It is odd that you have an offer elsewhere but not through Barclays, they are one of the most flexible lenders and can offer 5x salary + dividends if you have a high credit score. Not many others can compete at this level. Do you have a lot of retained profit? They should still be able to consider this for an existing customer.

Dave_Ham

The_J wrote: »

I've fed your situation into The J's Spectaculator:

Chance of complaint success - 0%
Time spent complaining - 4 months

Ask Barclays what your PAML is (Pre-Approved Mortgage Limit). That is based on account conduct and I've seen a few ridiculous ones so worth a stab.

It is odd that you have an offer elsewhere but not through Barclays, they are one of the most flexible lenders and can offer 5x salary + dividends if you have a high credit score. Not many others can compete at this level. Do you have a lot of retained profit? They should still be able to consider this for an existing customer.

Good call - and kicking myself for not coming up with this solution. We call up on every client just in case, although seem to wait forever for a simple answer.

This could be the golden ticket - nice work J

jamieloft

Thanks for the replies.

The current mortgage is 208k and I would hope to borrow 50-60k more to move house.

Spoke to Barclays today and no one seemed to know what I was talking about when I asked about preapproved mortgage limit suggested it doesn't exist

I have a 999 experian credit score and have not missed any payments for anything in over 12 years.

I do put a lot through my company as expences - like this laptop and my car. All costs that would be personal expences if I didn't have the company.

One option is I could change my delivery and move to PAYE through an umbrella it would cost me a few K in the short term but they would show my income as all taxable. I could then move back at a later date?

I joined Barclays because they understood what I do for a living but now rules have changed.

Thrugelmir

jamieloft wrote: »

I do put a lot through my company as expences - like this laptop and my car. All costs that would be personal expences if I didn't have the company.

Presumably your hourly rate charge out reflects this expenditure though.

Saves you tax as well.

jamieloft

Daily rate 500

Dave_Ham

Call any reputable broker and they will be able to get you your pre agreed mortgage limit fro Woolwich with some minimum personal details, your bank account and sort code.

It will take no longer than 15 minutes and could save you the few k to make it worthwhile.

Essentially based upon your current account conduct, they may pre-approve a mortgage limit and then no additional details are requested..

Key issue will be whether your income goes into this account and that you have direct debits set up and run nicely.

Good luck

The_J

As Dave says, get a broker on the case. They can look at porting your mortgage.

The fact that Barclay's own staff do not know about the PAML is a bit scary!

jamieloft

I have had a quick call with a local broker and I am going to see him next week.

Now all I need to do is find a bloody house for sale. The only local ones I like both sold in less than a week!