Natwest massively reduced offer from AIP HELP

Klappin1988

Hoping for some help.

Myself and the better half have got an AIP from Natwest 2 weeks ago for £190,000

We then proceeded to put a reservation fee down on the new build property we wanted after our house sold on its first viewing.

We met with the mortgage broker on Tuesday who put our application through for full approval and by today Thursday he has been in touch stating undisclosed commitments and told us to print our credit file on credit karma and send him it we have done this and the only thing showing which was undisclosed was £186 on a very account which was cleared last week , he has sent this info back and Natwest have come back saying maximum they can lend is £162,000 this is under the £172,000 we need how is it possible to drop from £190,000 to £162,000 based upon an undisclosed £186 our mortgage broker seems totally confused as-well.

Could he just be presuming it was undisclosed commitments could it actually be due to bank statements or that my p60 shows low earnings from last year as I changed jobs in January ?

I am so worried as we’ve sold our house thinking we had a big enough buffer from what we had on our AIP to what we needed.
Totally stressed out and never moving again

[Deleted User]

bank statments wouldnt reduce the lend. That would either be an accept or a decline.

Its quite rare for Natwest to change the loan amount after AIP. Its usually either straight to offer or declines on account conduct.

They do lend different amounts depending on loan to value so maybe you got pushed in to a different bracket?


Perhaps the broker calculated the income wrong? Or didnt declare all outgoings?

Klappin1988

Thanks I’m even more confused haha.
He’s ran it through his again and it’s still showing £190,000 on his end our MA that is he has our pay slips and my partners are steady same every month mine was averaged over the last 3 months as I make quite a lot in commission and just minimum wage basic.
He seems just as confused as us could it be a regular outgoing that doesn’t appear on our credit score that is set up as a direct debit on my account for example that they are classing as undisclosed commitments?

LRmortgage

I don’t know enough about your case, but I’d hazard a guess that it’s something to do with your commission and the p60 being much lower last year.

This is from Nat West’s criteria:

“We can consider accepting up to 100% of the commission an applicant receives. Evidenced by the last 3 months consecutive payslips and most recent P60. If the most recent P60 is unavailable, or doesn’t support the 3 month annualised figure, we can still consider this income using the last 6 months consecutive payslips.”

If I were your broker I’d be on the phone to my Nat West BDM to find out more.

There are other lenders that the broker can go to, but it’s important to find out what is causing the lending drop with Nat West to see how you can avoid the same with another lender.

kingstreet

We would expect to have to provide six months payslips to NatWest for evidence of commission and to take the average over the six months and annualise it.

If you have had a very good last three months but months four to six weren't great the average might well be lower.

Klappin1988

Hi thanks for all the help,

I did give my MA the last 6 months pay slips however having only started my job in January my first 3 months were on a lower commission percentage which I’ve explained this was due to probationary period.

kingstreet

Where there's a lot of commission needed to meet affordability, I've known NatWest ask for a couple of years' P60s. Especially if you are needing 100% taken into account. If you've only been there since January I suspect that is why you're seeing your borrowing power fall.

There are other lenders happy to take the latest three months but they may take only 50% or 60% into account, so knowledge of the lenders' criteria is essential.

LR is looking correct on this. It sounds like poor lender selection for someone in your position.

Klappin1988

Ok I feel like I’m getting a better understanding my next question is if it is the case of my payslips and we have debt well I have debt which was fully disclosed at time of AIP check how much debt would I need to clear to boost what they are willing to loan back up to £172,000 so up by £10,000 as that’s my next step, I can’t do anything about the payslips although the one I get next week would boost the average up by a massive amount would handing this over also make a difference. ?

kingstreet

Imagine you are baking a cake.

You need to put all the ingredients in a bowl, mix them and then cook them.

It's not possible for us to give you an outcome on here and tell you how your cake will turn out with only one or two ingredients disclosed.

You really need to be working on this with your broker.

In general, yes, a higher pay for September will help. Yes, clearing debt may help but this is always a tough call due to lender income-capping at different LTVs. Often you find some credit added to, or removed from, a case makes little difference to the borrowing power.

Try the NatWest affordability calculator.

https://rbsintermediaries.hdddirectsolutions.co.uk/Natwest

Use dummy figures for the income and loan to value similar to yours but try with and without credit commitments. Does it make a difference?

Klappin1988

Thanks we are putting down a 28% deposit so I don’t see loan to value being a massive issue, I just can’t believe our MA could get it so wrong we would never have sold our house if we had thought this was likely. Affordability shouldn’t be an issue as we earn 55k a year between us with no bonus or commission at all my average commission over 6 months still adds an extra £500 a month this month I’m owed £1000 commission. Going to speak to our MA again today and try and work our how to move forward.

kingstreet

In which case, it's back to undisclosed commitments.

Have you changed your name recently, or replaced one finance agreement for another?

Which credit file are you looking at and is it the one NatWest uses?

We have seen a woman who married having all her credit commitments doubled as they were visible in both names. Another whose car finance wasn't closed down when a new agreement started and both were visible.

Finally, NatWest normally uses Equifax at application stage. You don't know if TransUnion is showing the same data without being able to see both files. Think about a Check My File report. You get the data from all three CRAs (Experian as well) on one report.