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Instant rejection from my bank without them checking my account

edited 30 November -1 at 1:00AM in Mortgages & Endowments
20 replies 1.6K views
lea_t88lea_t88 Forumite
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edited 30 November -1 at 1:00AM in Mortgages & Endowments
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

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Replies

  • beecher2beecher2 Forumite
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    I think you'd be best to leave it to your mortgage adviser who is more placed to know which lender suits your needs. If he's found two lenders who are likely to offer you what you want, why would you waste energy on a lender who has told you that you don't fit their lending criteria?
  • lea_t88lea_t88 Forumite
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    beecher2 wrote: »
    I think you'd be best to leave it to your mortgage adviser who is more placed to know which lender suits your needs. If he's found two lenders who are likely to offer you what you want, why would you waste energy on a lender who has told you that you don't fit their lending criteria?

    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.

  • beecher2beecher2 Forumite
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    lea_t88 wrote: »
    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?
  • lea_t88lea_t88 Forumite
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    Yes it is a gifted deposit.

  • ThrugelmirThrugelmir Forumite
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    lea_t88 wrote: »
    I am 25 and in full time freelance employment.

    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.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • wont happen when in arrears. need to be back up to date with mortgage and then clear for at least 3 months to stand a chance
  • lea_t88lea_t88 Forumite
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    Thrugelmir wrote: »
    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.

  • lea_t88lea_t88 Forumite
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    manutd16 wrote: »
    wont happen when in arrears. need to be back up to date with mortgage and then clear for at least 3 months to stand a chance

    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.

  • ThrugelmirThrugelmir Forumite
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    lea_t88 wrote: »
    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.

    Self employed means multiple customers or clients.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • lea_t88lea_t88 Forumite
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    You can actually be self employed in my profession- but the point you can class yourself as self employed depends on your job title.
    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.

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