FTB income verification

Mardler

I was a mortgage broker, since retired.

Someone I know is looking at NatWest for a mortgage. A "mortgage adviser" told him how much he could borrow given current earnings etc. so he went ahead and made an offer.

Detail given included job start Jan '13, earnings of good salary plus additional amount as necessary requirement of job & which is not a bonus or commission, no debts.

Substantial deposit saved. Applicant is 10 year customer of NW.

LTV <90%.

NW now introduce problems.

1. Unsure about taking any of additional earnings into account despite employer letter making it clear that it's to all intents and purposes permanent & guaranteed.

2. Last 2 P60s required: these show much lower earnings (applicant head hunted 2012) so using these figures rule out any application.

I am very surprised that a bank (a) advises its long standing customer what he can borrow on sight of last three payslips then ignores them and demands 2 P60s instead and (b) now rules out additional earnings above salary that are for work that is a mandatory job requirement.

A known broker contact has already indicated placement should be OK.

All comments gratefully accepted.

ACG

Mardler wrote: »

1. Unsure about taking any of additional earnings into account despite employer letter making it clear that it's to all intents and purposes permanent & guaranteed.

Thats different to being guaranteed.

At 90% LTV lenders are going to be fussier and if additional income is going to be used then usually lenders will want to see evidence of it being paid in the past. Thats difficult with a new job to prove.

If i were the broker i would be on the phone to natwest explaining the situation with my account manager and asking what we can do (if anything) to get the underwriter to agree it.
EDIT: Just noticed the "" surrounding mortgage advisor which now makes me think its a sales man in branch with a fancy title? I think it will be down to your friend to chase the underwriters.

Without knowing the full scenario it is difficult to say. Also being a longstanding customer does not make much difference, TCF means everyone is or should be treated the same... unless your HNW.

kingstreet

In my experience, if the employer's reference says that additional income is likely to continue at present level, it should be accepted.

I would be trying to get sight of the reference, if it was my case. I suspect it is not as unequivocal as it needs to be.

Mardler

Additional income has a regular history throughout 2013, as I said it's part of the job.

The " " are because this person doesn't appear to know his business, keeps referring back up the line. No meetings, either - all by email or phone. I don't trust any outfit that won't hold a f2f meeting so very surprised by NW (though they said a meeting is scheduled for Saturday as they're so busy).

Thx for the feedback, keep it coming.