Mortgage application ID difficulties - sound advice urgently needed

TDG82

Hello,

I'd be interested to hear from anyone who's had similar experiences, who works for a bank, or is a mortgage broker themselves.

I am currently in the process of trying to purchase a 25% share of a property in inner London. The mortgage for the 25% share is £77,500, the rest is paid in rent and service charges to the housing association. It's a new-build set to be complete by around June and I'm a first time buyer.

On the basis of my salary and credit checks, the mortgage broker I'm using decided to proceed with an application to a building society. I was told by both the housing association and the mortgage broker that a 5% deposit of £3,875 would be fine.

With usual ID (pay slips, passport, bank statements, proof of current address, etc) my application was made, and a valuation then took place by the building society, costing me £315. It has since been sent to me.

However, then I was told by the mortgage broker that I would need further ID which I am really struggling to provide. The building society insist on proof of my last three addresses, but they'll only accept bank statements or utility bills.

My past rented addresses were all all-inclusive deals, except one which used a pay-as-you-go meter. Therefore I have no utility bills. I'm told they're unlikely to accept home broadband invoices as utility bills. I have always used electronic bank statements, so I have no past bank statements either.

I have offered them an old CRB check linking me to one address, a credit report linking me to all of those addresses on the electoral register, Student Loan statements, headed bank correspondence, tenancy agreements, all of which provide proof of address, and all of these have been turned down. My bank even wrote a letter confirming one previous address, but the building society will only accept a letter from the bank for one address.

I just don't understand. Surely a bank statement is more easily faked than a CRB check or credit report? Think about how easy it is to change your address on online or telephone banking.

Is there any way around this? Would it be worthwhile going into the building society and speaking to them myself?

Perhaps I was naive about the difficulties of obtaining mortgages for 5% deposits, but I was led to believe by the First Steps website, reputable newspapers with all the coverage of home ownership, and my mortgage broker, that is shouldn't be a problem.

I have offered a 7.5% deposit to help my chances, which I could just about stretch to, but regards the proof of address documentation, I appear to be nearing the end of the road.

The problem this has caused is it has cost me £315 for a valuation. Is there any way that I can get this back? If the mortgage broker had told me that I'd need all this ID from the outset, then I would have flatly told them 'no' before the costly valuation proceeded.

The other issue is I've been told that only this particular building society will offer mortgages for deposits below 15%, which I will never be able to save to meet the deadlines.

Therefore it seems at the moment that I'm not only going to lose the flat, but thousands of pounds I've already spent or 'owe' to my mortgage broker, building society and my solicitor.

Any advice would be helpful. Thanks for taking the time to read this.

Thrugelmir

Were you registered on the electoral roll at your previous addresses? i.e. continuous history.

TDG82

Yes, and the credit report demonstrates that.

I feel I've been left in the dark by the mortgage broker, and I'm wondering whether this is really about my proof of address or something else. My credit report is good. The building society even did those checks before the valuation.

Mulatinha

Have you tried asking your bank for copy statements dating back to the time you lived at your previous addresses? Not all banks provide this, but it might be worth asking.

Thrugelmir

Who is the lender?

TDG82

Leeds Building Society.

Bank statements only list your current address. For example, I could request a statement from 10 years ago and 6 addresses ago, but it'd still be headed with my current address. That's what the bank told me, and it makes sense.

brianposter

If everything else fails you could try to reclaim the valuation fee via the ombudsman or small claims court on the grounds that refusing to accept reasonable ID constitutes a breach of the original agreement with the BSoc.

As it happens I was recently making a claim against a foreign electricity supplier and they were clearly using "asking for excessive ID" as a way of avoiding their responsibilities.

TDG82

Thanks everyone for your responses. Not sounding promising so far!

Thrugelmir

Speak to the lender yourself for clarification of the issue.

brianposter

And phone or email the PRA. I think it is them who are responsible for the underlying regulation and may be able to help.

This sort of thing does not do their reputation any good.

Dave_the_Ginger_Cat

TDG82 wrote: »

Leeds Building Society.

Bank statements only list your current address. For example, I could request a statement from 10 years ago and 6 addresses ago, but it'd still be headed with my current address. That's what the bank told me, and it makes sense.

Some banks can provide this, some can't. If not, they may be willing to write you a letter confirming which addresses they had for you at different times