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Instant rejection from my bank without them checking my account
lea_t88
Forumite 442 Posts
Hello and hoping for a little advice on whether I can persue this further.
Here's the story first. I am currently looking for my first home to buy. I am 25 and in full time freelance employment.
I recently spent all my savings on a car and some private dental work which I don't regret one bit. But my father last week told me he had a £30k bond maturing in a month or so and I could use it as a deposit on my first home. The places I have seen so far have been £70k.
I graduated in July 2010 and have been working ever since, however I am a freelance employee. This is the norm for the industry I work in. I join a company for a few months to do a job, then go to another company and so on. I have not had any gaps in employment since I graduated. I am not classed as self employed and tax is deducted at source, so I don't fill in a tax return. This is also normal for my job.
I am in touch with an independent mortgage advisor who told me he has found a couple of lenders who are willing to give me a £40k mortgage and we are talking about them tomorrow.
However, I was in touch with Natwest-my own bank- who today told me it would be a flat 'no' to get a £40k mortgage from them. I understand that a mortgage is a privilege and not a right, however the person I spoke to didn't even look into my account or look at me on an individual basis. It was actually a 'computer will say no to freelance employees' situation.
What I would like to contest is that if they looked into my account, they can see I have been in full time employment since leaving university (and I have all payslips to match) and that I hve excellent history with them. I got a £7500 loan in May for a car and this was paid off this month- 2.5 years EARLY. I also have had credit cards with them always used and settled. I have paid off my student overdraft, now have a select account and am paid almost £2,000 every month. They'd also see that my £2k wages is entirely disposable as I live with my parents.
Do I have grounds to call and ask them to relook at my case as an individual case rather than looking at me as a number?
I am MORE than capable of paying the £40k mortgage on a salary of £31k! I understand this is risky as I can never prove I'll still be working in 6 months, however I have a full history of employment so far.
The woman on the phone also told me that if I was registeres as self employed but with the exact same salary and history, it would be no problem. It's just because I am a freelance employee they dislike it, which I think is silly considerig I would still have to find work myself and get paid the same amount.
Happy to accept it if this is the end but would appreciate any info from more experienced members.
Thank you
Here's the story first. I am currently looking for my first home to buy. I am 25 and in full time freelance employment.
I recently spent all my savings on a car and some private dental work which I don't regret one bit. But my father last week told me he had a £30k bond maturing in a month or so and I could use it as a deposit on my first home. The places I have seen so far have been £70k.
I graduated in July 2010 and have been working ever since, however I am a freelance employee. This is the norm for the industry I work in. I join a company for a few months to do a job, then go to another company and so on. I have not had any gaps in employment since I graduated. I am not classed as self employed and tax is deducted at source, so I don't fill in a tax return. This is also normal for my job.
I am in touch with an independent mortgage advisor who told me he has found a couple of lenders who are willing to give me a £40k mortgage and we are talking about them tomorrow.
However, I was in touch with Natwest-my own bank- who today told me it would be a flat 'no' to get a £40k mortgage from them. I understand that a mortgage is a privilege and not a right, however the person I spoke to didn't even look into my account or look at me on an individual basis. It was actually a 'computer will say no to freelance employees' situation.
What I would like to contest is that if they looked into my account, they can see I have been in full time employment since leaving university (and I have all payslips to match) and that I hve excellent history with them. I got a £7500 loan in May for a car and this was paid off this month- 2.5 years EARLY. I also have had credit cards with them always used and settled. I have paid off my student overdraft, now have a select account and am paid almost £2,000 every month. They'd also see that my £2k wages is entirely disposable as I live with my parents.
Do I have grounds to call and ask them to relook at my case as an individual case rather than looking at me as a number?
I am MORE than capable of paying the £40k mortgage on a salary of £31k! I understand this is risky as I can never prove I'll still be working in 6 months, however I have a full history of employment so far.
The woman on the phone also told me that if I was registeres as self employed but with the exact same salary and history, it would be no problem. It's just because I am a freelance employee they dislike it, which I think is silly considerig I would still have to find work myself and get paid the same amount.
Happy to accept it if this is the end but would appreciate any info from more experienced members.
Thank you
0
This discussion has been closed.
Replies
I had made initial enquiries with Natwest before getting in touch with my advisor, and it happened that the advisor I was due to see at the bank (appointment made before advisor came along) called me today to go through some things, and this was the outcome.
I'd initially thought it would be easier with a lender who knew my financial history given my situation.
seems like it isn't though so best to go along with what your adviser says.
I take it your dad is gifting you the deposit, rather than you having to repay it?
As a free lancer there's no guarantee of full time employment. Therein lies your issue.
If you work for a single employer then they are taking advantage of you.
I agree. What I don't agree with is the woman I spoke to telling me it would be fine for them to look at me if I was classed as self employed- as I'd still have to find my own work and still no guarantee of employment.
I have no current mortgage. If you're referring to my CC debt, this is on 0% and I have money to cover most of this when 0% ends in May. And I know people who get mortgages with some CC debt so that can't be gospel.
Self employed means multiple customers or clients.
My position at the moment cannot be classed as self employed. When I get my next promotion I can be self employed/sole trader/ltd company. The process of working and inding work still stays the same. We tend to work for a lot of different companies but also have repeat/regular companies that use us.