Risk of declined mortgage application due to pre-settled status

Karolina2020

Hello,

Both me and my partner (both EEA citizens) are in the process of applying for a mortgage. However yesterday we received a call from Building Society that our application might be declined as underwriters raised a concern that we're granted only pre-settled status which is time limited. We explained that we're EEA citizens and we're still under EU law and they can't treat us differently. We explained that even by the end of the year we're not obliged to apply for it or it can't be used against us and our rights, including right to work.

Mortgage consultant admitted that either she or BS doesn't understand our rights and she tried to google it (!) but she can't find clear guidance. She asked "what if the law will change after December 2020?" which is absolutely unprofessional to rely on "what if" argument. She is thinking that if we won't apply for settled status on a day that we're in UK for 5 years we will be forced to go back to our countries and we won't be able to pay the mortgage. She asked why we can't apply for settled status now, which still was difficult for her to understand that you can't do it in advance if you're not 5 years in UK.

We met all other criteria: we have proven credit history, full time permanent employment, UK bank accounts, even register to vote, we're residents for more than 3 years and our annual income is high enough to cover all expenses and to save money.

In their policy on their website is nothing about EEA citizens after Brexit and any impact that it might have on mortgage application.

We made a research but there is no case that someone was declined mortgage because of pre-settled status for EEA  citizens, we asked 3 other brokers and none of them had a client in that situation, we asked Citizens Advise Bureau but the call back will be within 2-5 working days (!), and we need urgently strong argument before we would make an official claim.

I would much appreciate your advise as this is absolutely shocking and disappointing that after all those years of being in UK it's the first time that any institution treat us in such a discriminating manner.

Any help is welcomed

Thank you

Karolina

Slappermum

Your BS is discriminating against you. Taking them to court is probably something you don't have the time or money for so just look for a different mortgage provider and give them your custom instead of these w*nkers? Alternatively, you could raise the issue publicly on Twitter or something and see where that gets you - it's been known to work.

Karolina2020

Slappermum said:

Your BS is discriminating against you. Taking them to court is probably something you don't have the time or money for so just look for a different mortgage provider and give them your custom instead of these w*nkers? Alternatively, you could raise the issue publicly on Twitter or something and see where that gets you - it's been known to work.

Thank you @Slappermum. Unfortunately that BS is our last option as due to COVID-19 other banks withdraw their offers with 5% deposit, so we're in a bit critical situation. And as you mentioned - going to the court is not an option for us.
We're trying now to deal with a case in a kind and respectful manner, even though it's absolutely shocking that we have to prove our rights. 

McDen

Hi,
It is very annoying what the mortgage providers doing right now to the EU Citizens with the Pre-settled and even Settled status in the UK.
Me and my partner, both with the settled status in the UK, were told today by an mortgage provider (building society) that if we had a British Citizenships (British Passports), they would give us a mortgage with 10% deposit, however, with our current immigration Settled Status in the UK (I have been in the UK for 12 years and my wife for 6 years, both professionals), we have to secure 20% deposit to get a mortgage. 
No, it is not discrimination but direct classification into second-class citizens!
Best regards
Nenad

watch3r

Go with Barclays 😁
ok they didn’t have 95 % LTV so try HTB ? 
we are polish and they didn’t make any issues about it.
they didn’t even asked about our status or anything related to it. 

Or you can try securing you status to settled status.
Easy to apply and takes couple days.