Lying MA, Mortgage Declined, New Application - HELP! (Single, Self Employed and Benefits)

BlueRaccoon

Just wondering if anyone has experienced something similar to my current predicament or can offer any advice? Having had an offer accepted on a house back in April, I have just heard from the MA that my mortgage with Santander has been declined.

My mortgage application is a single application which includes my self employed earnings (providing 2 years SA302's), CB, CTC and DLA. FTB, 15% deposit from sale of marital home I'm currently living in, excellent credit rating. They will not take CSA into account as ex currently paying household bills in place of this, and will be paying direct to me from moving date. So despite having enough money to pay a mortgage, I never expected they'd give me one, but alas...

In March/April I spoke directly to three different banks, all of which offered me an AIP for a sufficient sum. I intended to proceed with my offer from my own bank (NatWest) when making an offer. I was somewhat bullied into meeting with the estate agents MA, who found a higher mortgage allowing me to put a lower deposit down and have money available to do some much needed renovations - so I went ahead, paying the MA £250 (further £250 on completion) and the application was submitted.

Something didn't sit right with me from week 1. I was constantly left chasing MA for promised updates. He had provided them with an old tax credits award letter, which was for more money, despite me having sent the 18-19 award when it arrived. I have evidence on email of him saying he was sending the old one instead - being deliberately deceitful - which is not the way I like to work! He said he told them I worked 24 hours (he made it up off the top of his head without asking!) so he could say my income would increase when kids are older. I work 30 hours - 25 total in office, plus an hour checking emails, planning marketing etc when kids are in bed. My tax credits award includes 30 hour premium, but states 40 hours on there (I've tried changing it, but because I don't fall into bracket of 24-29 hours they haven't altered it - this is also mentioned on the award letter - and I just keep receiving letters saying the change in circumstances doesn't affect my award). I told him to correct the number of hours I work, which he did.

After multiple back and forth with Santander, they have declined on the basis of the tax credit award saying I work 40 hours which means In their books I will still only earn what I earn now when I no longer receive tax credits. However, this isn't something new from speaking with lenders previously. I've always worked 30+ hours and always stated my income and they've always said yes we can lend?! Could this be down to his blatant lying, them picking at something like this? Or will no one offer me a mortgage?

I am furious about how the MA has approached the application and he said we'll apply with NatWest. I want him to have nothing more to do with it and will not pay him more money to apply for the mortgage I'd found in the first instance. (I'm assuming I cannot get a refund on the money I scraped together to pay him already!) So am now applying myself with NatWest. AIP sorted this morning, documents uploaded online, their MA telephone appt Monday. I am terrified I'm going to lose this house and be left with nowhere to go and four kids in tow!

molerat

Raise a formal complaint with the MA for him knowingly using inaccurate information and see where it goes. He may give you the fee back to prevent it going to the ombudsman.

amnblog

A Lender, where considering tax credits will always check the current award letter shows the appropriate income.

Any attempt to provide preferential, out of date, information is both alarming and pointless.

We have no way of knowing the strength of your case without the full information but I am surprised you are taking pot luck that it will fit with Nat West rather than consulting an alternate, competent Broker.

You mentioned that during the process you applied for higher lending than originally intended so you may have the advantage of reducing your request if affordability does not fit.

BlueRaccoon

amnblog wrote: »

A Lender, where considering tax credits will always check the current award letter shows the appropriate income.

Any attempt to provide preferential, out of date, information is both alarming and pointless.

We have no way of knowing the strength of your case without the full information but I am surprised you are taking pot luck that it will fit with Nat West rather than consulting an alternate, competent Broker.

You mentioned that during the process you applied for higher lending than originally intended so you may have the advantage of reducing your request if affordability does not fit.

Thank you so much for taking the time to reply.

Well I'd have assumed that would be the case that they would check it - would be silly not to! As the application was submitted whilst I was awaiting the updated tax credit award after renewal, he told me to bring the current letter and we could update it with the new one when he came through. This was a matter of days later, I emailed this over, and because the payments were lower he said he'd wait and see if they asked for it before sending it. They did ask for it. And he told me he had just sent them the old one first to see if he could get away with it, despite me sending him the correct award letter a couple of weeks earlier. So I believe he put a higher amount for tax credits income, and backed it up with an award letter that shows an estimate of 18-19. I'd advised the payments would be lower as my income had increased. This was obviously not taken into account.

As a FTB who suffers from severe anxiety with anything money related, I figured paying a mortgage advisor was probably a wise decision. Now I feel completely let down, frustrated, and somewhat fearful of letting anyone else have control over it. I currently don't have the money to pay someone else again, having forked out on money to pay him, money to the solicitors for my purchase and half of the fees associated with the selling of the house I'm in (I don't own this and am not on the mortgage or deeds, but contributed to the deposit, the years in here, and will be taking a share of the equity, so also paying my share of the fees), and I'm very conscious of the time constraints too. I don't know where to start with finding a competent broker, and don't feel I have the confidence to instruct anyone now.

From the information I've been given, affordability was not an issue and a lower mortgage would not make a difference. The focus was solely on the working hours. The MA was aware that I had flexibility to put down a larger deposit and borrow less money (which is what he was suggesting to do with NatWest), and went to the BDM who (apparently) said no, that won't help. Is there any way of contacting the mortgage lender for verification on why the application was refused? I'm of the assumption I can't, as it went through the mortgage advisor?