Refused mortgage due to payslips not matching bank statements

Kiwikind

After taking 6 weeks to process our application - in itself an annoyance due to the amount of times Abbey kept coming back asking for more stuff - Abbey have rejected our application based on an absurdly stupid admin discrepancy. My girlfriend's payslips and her bank statements don't match up. The difference is about 10p per month and to cut a long story short it's because of how her boss does the payroll. He rounds down slightly and then once a year balances it out. Apparently this is unusual but not illegal. They told us that even if we got it corrected, it's too late and they want nothing to do with it. Meanwhile we are supposed to have exchanged on our new build last week. We are pretty gutted about it. A friend told me that he doubts that's the real reason but that they're latching on to it as an excuse for not lending. We are applying for Nationwide now and apparently they're less likely to fuss over this (especially as my girlfriend is a customer...although we're still going through a Mortgage Broker).

Has anyone had a similar experience? Are we doomed forever or do you think this could just be Abbey being exceptionally fickle?

Thrugelmir

Kiwikind wrote: »

He rounds down slightly and then once a year balances it out.

Never heard of this in all my years of being in finance. Would appear to be creating unnecessary additional work if this is the case.

FraudBuster

Thrugelmir wrote: »

Never heard of this in all my years of being in finance. Would appear to be creating unnecessary additional work if this is the case.

Snap.............

Kiwikind

FraudBuster wrote: »

Snap.............

He said it is to do with the fact that a lot of his staff are on irregular wages. So let's say my GF should be taking home £1500.24 a month, he rounds down to £1,500. It's something to do with the time when the payslips have to be run (outsourced) vs the time he has to put the money in. Anyway, he's changing it for July onwards but according to Abbey, it's too late, we are forever tarnished.

My point is though - do you think this was the real reason they declined us? We earn £63K a year, have no outstanding debts, Have an £80k deposit and only need a mortgage of £170K to get our £250K new build. We are perfect candidates if you ask me but they're not interested in our money. Are they just getting cold feet in the market place and looking for any excuse not to pony up?

ACG

Ive never come across it either.

With all the mortgage fraud going on, it seems right that theyre questioning it (im not suggesting you are commiting mortgage fraud). Im not sure you can blame the lender for this, its your gf's boss's doing.

Thrugelmir

Kiwikind wrote: »

My point is though - do you think this was the real reason they declined us?

Unlikely. Lenders do not have to give the true reason for a decline.

Dave_Ham

Sorry this is a Santander special and utterly ludricous. Their only get out is if this is a family business, but it does not read like this.

Nationwide are a sensible solution, with probably better rates in any case?

Once again a demonstration of Santanders appetite to lend, or not..

Good luck

Wh05apk

Dave_Ham wrote: »

Sorry this is a Santander special and utterly ludricous. Their only get out is if this is a family business, but it does not read like this.

Nationwide are a sensible solution, with probably better rates in any case?

Once again a demonstration of Santanders appetite to lend, or not..

Good luck

Dis-agree Dave, From a lenders point of view, the payslip should confirm what is paid, if the actual amount paid to the bank account is different, this is clearly going to raise suspicions of fraud.

In this case, I would recommend either using a lender who will not ask for bank statements, or one that will do an employers reference as confirmation, given that Abbey will not take references, the case was always going to struggle with them.

Dave_Ham

Agree to disagree then, we are talking pence and the p60 will match as balanced at the end of the year, I have seen small/medium companies do this previously when outsourcing payroll.

Based upon your comment, Nationwide are likely to request payslips and statements so do you think Nationwide will fail then?

Wh05apk

Nationwide are less "picky" and will if necessary do a reference, so should be ok.

Dave_Ham

Ha Ha..

Not quite what you said on the previous post, but at least we all concur.

This should be ok for Nationwide.