Midland Heart; advice needed

SpartaAFC

Hi guys,

I'm currently self employed, and applied for a property form midland heart on the intermediate rent scheme as im trying to save for a mortgage.

I went through all the process, providing a guarantor etc and was meant to move saturday just gone, may 14th 2016.

Midland Heart has just come back to me and said, they cant do the move because they dont allow guarantor on this scheme yet, I was told I needed one and paid for the referencing via homelet.

Homelet sent back my income as 0, as ive been unemployed for under 12months. Homelet say they only accepts tax returns as proof of income.


Is there anything i can do because Im basically homeless right now.

I was due to move, stuff packed, new furniture ordered to the new address even had a date for a sky installation.


Thanks

Guest101

Who, or what, are midland heart?

fed_up_and_stressed

Guest101 wrote: »

Who, or what, are midland heart?

A Housing Association

SpartaAFC

Its a Housing Association, probably one of the biggest in the midlands.

Any advice?

Midland_Heart

Hi SpartaAFC,

Could you please give our Customer Service Centre a call on 0345 60 20 540 and we can look into this matter for you? Alternatively you can send us a private message on Facebook or Twitter (@MidHeartHelp). If you can give us some more information we'll be able to see what's happened.

Thanks, and sorry you've experienced these problems.

Midland Heart

Guest101

Midland_Heart wrote: »

Hi SpartaAFC,

Could you please give our Customer Service Centre a call on 0345 60 20 540 and we can look into this matter for you? Alternatively you can send us a private message on Facebook or Twitter (@MidHeartHelp). If you can give us some more information we'll be able to see what's happened.

Thanks, and sorry you've experienced these problems.

Midland Heart

Whilst that's exceptional customer service, please do register with MSE if you intend to post again in the future.

SpartaAFC

Thanks, Ive contacted your customer centre, but that doesnt change the fact that you guys failings have left me basically with no where to live. Im writing this from my car waiting on a friend to finish work to get some rest on his sofa. Yes at 2.30am!

Midland_Heart wrote: »

Hi SpartaAFC,

Could you please give our Customer Service Centre a call on 0345 60 20 540 and we can look into this matter for you? Alternatively you can send us a private message on Facebook or Twitter (@MidHeartHelp). If you can give us some more information we'll be able to see what's happened.

Thanks, and sorry you've experienced these problems.

Midland Heart

Former_MSE_Andrea

Hi everyone

We've spoken with Midland Heart and we're happy to leave this post. If Midland Heart feels there are more questions in future they can help people with we'll consider giving them a full, verified account.

[Deleted User]

It does sound a bit harsh on the part of Midland Heart. One would have thought they would have other ways of assessing ability to pay rent (if the largest HA in the Midlands), like through bank statements while a person gets sorted re self employment. I assume the OP is not applying to buy the property at the moment? It sounds rather strange to me.

LittleMax

deannatrois wrote: »

It does sound a bit harsh on the part of Midland Heart. One would have thought they would have other ways of assessing ability to pay rent (if the largest HA in the Midlands), like through bank statements while a person gets sorted re self employment. I assume the OP is not applying to buy the property at the moment? It sounds rather strange to me.

If it was a standard tenancy the HA would be able to look at recent bank accounts in order to assess income, as if the income from the business drops, OP would claim Housing Benefit which would also look at recent accounts.

However Intermediate Rent Schemes are a little different. They are designed for tenant to pay reduced rent and save for a deposit to buy over a few years, at the end of which they will buy a property. Rent on intermediate schemes must be paid by the tenant without recourse to housing benefit as the tenant has to show that they will be able to afford a mortgage at the end of it.

OP - can I ask why you have chosen intermediate rent scheme at this stage? They are designed for people who could buy but need to save deposit. At this moment in time you are not in that category.

SpartaAFC

deannatrois wrote: »

It does sound a bit harsh on the part of Midland Heart. One would have thought they would have other ways of assessing ability to pay rent (if the largest HA in the Midlands), like through bank statements while a person gets sorted re self employment. I assume the OP is not applying to buy the property at the moment? It sounds rather strange to me.

Correct, Im renting not buying. Im currently saving up to get a bigger deposit as possible so decided to use this scheme.

LittleMax wrote: »

If it was a standard tenancy the HA would be able to look at recent bank accounts in order to assess income, as if the income from the business drops, OP would claim Housing Benefit which would also look at recent accounts.

However Intermediate Rent Schemes are a little different. They are designed for tenant to pay reduced rent and save for a deposit to buy over a few years, at the end of which they will buy a property. Rent on intermediate schemes must be paid by the tenant without recourse to housing benefit as the tenant has to show that they will be able to afford a mortgage at the end of it.

OP - can I ask why you have chosen intermediate rent scheme at this stage? They are designed for people who could buy but need to save deposit. At this moment in time you are not in that category.

Why am I not at a stage to buy a house? There are special brokers out there. I already have savings towards a deposit. A mortgage advisor pointed me towards this scheme as it'd give me some advantages. Firstly it would allow me to build a bigger deposit to get more favourable interest rates. It would also allow my account to mature to proof to the lender.

The thing thats really got to me is that. I first viewed the property, nearly a month ago. Went through all the checks and was told everything was fine by homelet, who done the referencing. The referencing company wont accept anything but a tax return if you are self employed, no bank accounts, no savings, nothing. So technically if you self employed under 12 months you get penalised. Midland Heart are just going by what the referencing company told me. I was told I needed a guarantor. I got one. Even the deed of guarantor signed.

Then less than 24 hours before I'm due to move they ring and said nothing can be done, despite them admitting their mistakes?

Also if my income dropped I would have savings to dip into, though counter-productive. Also a guarantor is there. Isnt it the same as if a person who is "employed" losses their job because of a business going bust?