ALDERMORE mortgage advice

Hannahc199106

Good Aftfernon, looking for some advice. We are currently in the process of going through a mortgage application with aldermore bank. We have intially been accepted however the underwriter has now come back requesting a further £6000 deposit whcih we cannot afford due to my husbands P60 not being satisfactory.


Basically his current employer filled in a new starter form for him as he had not received his p45 so his p60 only shows his employment from Novemebr to April for the tax year 18-19 so obviously this is susbstantially less than what he normally earns. We have contacted HMRC and they are happy to send over figures but this takes up to 2 weeks, Aldermore have also contacted his employer to confirm his earnings. However they have stated that even with confirmation they could not gurantee the extra deposit would then be dropped.


Does anyone have any experience or able to provide any insight on the likelihood of us being accepted on our original deposit offer. Being 7months pregnant I am really stressing about how we're going to manage in our current setup or moving with a newborn.


Thanks

AdrianC

So the problem is that he can't prove his income for the first half of the 18-19 tax year?

Doesn't he have any payslip from that period? Can't his previous employer provide some evidence?

hazyjo

Hannahc199106 wrote: »

Does anyone have any experience or able to provide any insight on the likelihood of us being accepted on our original deposit offer. Being 7months pregnant I am really stressing about how we're going to manage in our current setup or moving with a newborn.

IMO you'd be better of waiting anyway. It can be very stressful buying a property, and is likely to take around 3 months from offering to completion. Are you saying you're trying to move before the baby arrives?!


Presumably he/she will be in with you to start with anyway? Is it all their stuff you're stressing about? Room for storage/baby clutter?

Hannahc199106

We started the process of buying the house back in July, offer was accepted on the 21st july, since then our current landlord has given us notice to move out by the 18th November as they are moving abroad, we are more than happy to move to another property hwoever renting is dead money and as we are in a position to move with a 10% deposit and good wage earnings of over 30k each we are reluctant to continue to rent. We have made arrangements to stay with family until the new year as we know we are unlikely to move until then and everything has been going smoothly until are mortgage broker phoned last week so this is the first we have heard of the issue. The delay initially was due to the fact thy would not accept my wage slips as a pdf document and now we have this. Whilst we can save more and we do save every month it just seems that we would only come up against the same probem again as it is the documents provided that are casuing the issue.


We have sent every payslip from April 2017 onwards so this includes both his previous and current employment and there are no gaps in the dates, so I do not understand why they are still requesting a larger deposit they have already also conatcted his current employer for confirmation of earnings. It just seems like a farce to try and get more money out of us.

AdrianC

Hannahc199106 wrote: »

since then our current landlord has given us notice to move out by the 18th November as they are moving abroad

Well, you aren't moving in to a purchased property by then... Not if you still haven't even got a formal mortgage offer.

Fortunately, you don't have to. It will take the landlord months to gain possession through the courts - so as long as you liase with him and ensure he's fully aware of your position, he'd have to be a particularly harsh person not to work with you.

By "moving abroad", you mean he's looking to sell the property? Putting it on the market in late November isn't going to get him a buyer in a hurry. If you agree to allow viewings before you move out, would that help him to give you some leeway?

hwoever renting is dead money

No, it isn't. It buys you accommodation.

and as we are in a position to move with a 10% deposit and good wage earnings of over 30k each we are reluctant to continue to rent.

Except you can't prove your OH's earnings, right?

We have made arrangements to stay with family until the new year as we know we are unlikely to move until then and everything has been going smoothly until are mortgage broker phoned last week

What if the purchase falls through?

We have sent every payslip from April 2017 onwards so this includes both his previous and current employment and there are no gaps in the dates, so I do not understand why they are still requesting a larger deposit they have already also conatcted his current employer for confirmation of earnings.

Sounds like they're regarding his income as lower than you think it should be. So they're willing to lend you a lower loan-to-value. What are the actual numbers? Purchase price, original and reduced mortgage borrowings?

It just seems like a farce to try and get more money out of us.

No, they're getting less out of you.
They lend you less, they get less interest from you. But it's safer for them to lend, because they know there's more headroom if they need to repossess.

Is it too late to look at a different lender?

Hannahc199106

Our property has already been sold, we are friendly with our current landlord and he was are of our impeding house purchase, he has already delayed the sale of his house with a view of letting us stay but now the buying party are looking to get things cleared. He is moving back to look after family and therefore we completely understand his need to sell the house. We agreed to the 18th November as a date to move as we made arrangements to stay with family, my sister in law is moving to singapore and there we will be taking up her room at my father in laws house, beleive me this not something we have thought about lightly!


We have proved the wages this is the problem, we have also had them confirmed by HMRC and the figures that we provided the bank were given to use by our financial advisor along with every payslip which equates to £30200 for my husband and £3750 for myself after tax for tax period 2018-2019.


We are purchasing a property for 125,000 with a deposit of £1250 which we have worked hard to save. They now want a 15% deposit.


We currently pay £300 more in rent than what our monthly mortgage offer has been given as by Aldermore, so to us it is dead money as yes whilst it buys accomodation it is siginifcantly cheaper for us to have a mortgaged property and security.


We have already applied to several lenders, Halifax described as very 'green' as we have nothing on credit or finance which we did not understand and we were rejected straight away by Natwest.


We have always purchased everything outright and saved to get things that we want as we have been reluctant to take out credit cards etc, it has never left us any problems before and our only reason for not buying a house sooner was that we saved to put a larger deposit down.

[Deleted User]

Aldemore look like a more specialist 'high risk' lender (self employed/bad credit).

I wonder if you'd be better off going into another rented property for a year, then looking for a more usual mortgage (which will have lower interest rate)? By then proving salary problem won't be a problem, no more maternity leave worries (how do I manage on less money etc), you'll have more saved up and won't be paying such a high interest rate. Dead money renting? Try paying tens of thousands more in mortgage interest.

AdrianC

Hannahc199106 wrote: »

We are purchasing a property for 125,000 with a deposit of £1250 which we have worked hard to save. They now want a 15% deposit.

I think you mean £12,500 - 90% LtV - so, yep, another £6,250 would take you to 85% LtV.

That's one of the big steps for relaxing affordability criteria.

So, basically, yes, they're happy to lend you £106,250, but don't want to lend you £112,500.

Hannahc199106

We have already discussed this option with out financial advisor and as I only get statuory maternity pay we would actually be in a worse off situation this time next year to buy due to the drop in my wages. For the time I am taking off even though I am planning on returning to work early for the reason that it is only statutory.
It is just very frustrating, especially as mortgage advisor has said that we are one of the most financially stable customers he has dealt with yet we seem to just get rejected at every stage. We have also sought the advice of two other mortage advisors who also cannot understand the issue.