Mortgage application difficuties - unrealistic questions and single parent problems

Chanty17

Hi,

Just wondered if any other single parents have had issues getting mortgages because they were relying on income from child maintainance? I am two years divorced with three kids (8, 8 & 10) and have court order in place for maintainance from my ex-husband from 2 years ago which has been paid on time and in full since commencement. I work full time in a good job and have a perfect credit rating.

I bought my house 2 years ago and mortgaged through Barclays. I am currently in the process of applying for a renewal and additional borrowing (but done as one product so classes as new loan) and seem to be havng difficulties far beyond those I would expect with questions far beyond the norm and am being asked to provide and prove things which seem exceptional. All of which I strongly suspect are designed to put off a single parent with income which cannot be background checked to withdraw an application/or to be able to reject it. The additional borrowing puts me at 59% LTV so this isn't a high risk loan and they've received all payments on time and in full for the last 2 years. I also bank with them so they can see all in and outgoings.

So far I have been asked:
* What I will do when the child maintainance ends (the kids are 8 & 10 so I'm being asked about a situation 10 years in the future (minimum))
* I have been asked how experienced I am in completing building projects (the additional money is for home improvements)
* I have been asked questions which seem to be leaning towards finding out my ex-husbands job and salary
* I have now been told that I have finally passed the affordability section and the house has passed "automatic" valuation but in order to issue the loan they require full builders quotations for all of the £50k additional borrowing. As the works are to be carried out over the next 5 years (single mum, 3 kids, fulltime job make it impossible to do in one go!) I am being asked to get a full quote for £50k worth of works that I don't yet intend to carry out. The two quotes I already have (6 months apart and thus demonstrating my preparation and research) which cover £15,000 of the works ae apparently not evidence enough. Bt again, I don't understand what it is they are trying to get evidence of as I have already passed affordability and house valuation. This just feels like a suggestion that a woman can't do this kind of project and therefore they need to check I've done my research.

Has anyone else had anything like this? Any other single parents who feel they've hit problems because the bank is unable to run background checks connected to child maintainance? Any advice appreciated!

Thanks:beer:

amnblog

I am afraid this is all standard stuff. Barclays need some evidence on file that the funds are to be used for the purpose you state.

You will need quotes for £50,000 of works if that is the intention. Quotes for £15,000 leaves £35,000 without evidence.

Thrugelmir

The lender requires convincing that the money is for the purpose you say it is for. People don't borrow £50k then say the works will take 5 years. If you haven't had the work costed then how did you arrive at the figure you've asked to borrow. Not my questions but the thoughts of the underwriters.

The additional borrowing puts me at 59% LTV so this isn't a high risk loan and they've received all payments on time and in full for the last 2 years. I also bank with them so they can see all in and outgoings.

Irrelevant in terms of the application.

What I will do when the child maintainance ends (the kids are 8 & 10 so I'm being asked about a situation 10 years in the future (minimum))

If you are using this as income. Then it has a material bearing on the application. As the loan no doubt lasts far longer than 10 years.

I have been asked questions which seem to be leaning towards finding out my ex-husbands job and salary

Connected to the above points. Your ex needs to maintain his job if the income is to continue. What if it fell for some reason.

If you are detected as acting defensively then this will raise questions in the minds of those asking the questions. People are surprisingly predictable .

mrginge

All sounds perfectly acceptable to me.

kingstreet

A chance to get away from Barclays and it's not being taken...?

Chanty17

Thrugelmir wrote: »

The lender requires convincing that the money is for the purpose you say it is for. People don't borrow £50k then say the works will take 5 years. If you haven't had the work costed then how did you arrive at the figure you've asked to borrow. Not my questions but the thoughts of the underwriters.

Thanks for your input - really appreciate you taking the time. I've previously managhed building projects which is why I am able to roughly cost up the work. However if I explain that the survey revealed the need for £100k worth of work (when originally bought 2 years ago) and I'm looking to borrow only £50k - perhaps it makes more sense as to why there are no finite calculations here. I intend to complete the most pressing jobs until the money runs out. The projects will take me several years to complete - I'm a single mum with 3 kids and a full time job and the work requires a great deal of research and planning - kitchen design, building regs, planning permission etc

Irrelevant in terms of the application.



If you are using this as income. Then it has a material bearing on the application. As the loan no doubt lasts far longer than 10 years.

I'm not sure that I agree that asking questions beyond the term of the current mortgage product is standard procedure. Otherwise I'd need to justify what I'd do if I lost my job, got ill, re-married etc? Like most poeple, if my income changed significantly I would be forced to sell my house and downsize. If child maintainance is accepted as an income according to bank lending policy - why do I need to justify my plans at the end of the child maintainance term (which will always be a maximum of 18 years for any client vs a standard 25 yr mortgage?) I certainly haven't been asked what I would do when my child benefit runs out -the questions are specifically related to the maintaince which the bank say that they accept - but don't actually seem to want to.



Connected to the above points. Your ex needs to maintain his job if the income is to continue. What if it fell for some reason.

Again - as I am divorced I do not know what my ex's income is or the stability of his job ( I can have a guess but I don't know for certain). The maintainance element makes up aproximately 15% of my income. But I still feel that the bank either accepts this as an income or it doesnt. It very much feels as if they are saying they accept maintainence but actually doing their best not to.

If you are detected as acting defensively then this will raise questions in the minds of those asking the questions. People are surprisingly predictable .

I completely agree on this but how do I object to the bank moving the goalposts with out looking defensive? I think that's my key frustration.

I've had a builder round tonight and it's going to take 3 weeks to get a quote back at that level of work and even then alot of it won't be covered because it requires input from architect and structural engineer (neither of whom I can afford to engage with out the money!).

Sorry - sounds like I'm moaning at you which I didnt intend just extremely frustrated at the fact that I feel increasing forced into commiting fraud and submitting a quote for a piece of work I don't intend to get done by just getting a high end kitchen fitting quote which would cover the cost of the additinal borrowing.

Anyway -rant over - genune thanks for engaging.

Chanty17

kingstreet wrote: »

A chance to get away from Barclays and it's not being taken...?

I've already paid the application fee.

Chanty17

amnblog wrote: »

I am afraid this is all standard stuff. Barclays need some evidence on file that the funds are to be used for the purpose you state.

You will need quotes for £50,000 of works if that is the intention. Quotes for £15,000 leaves £35,000 without evidence.

Why is the loan not tied to receipts rather than meaningless quotes? They have a survey which demonstrates the need for £100k worth of work.

amnblog

Receipts for what? The work has not yet been started.

Thrugelmir

Chanty17 wrote: »

They have a survey which demonstrates the need for £100k worth of work.

This actually suggests that the property is in a dire state of repair.