Any other self employed people un-affected by Coronavirus had a re-mortgage application denied?

pat32

I am a web developer and have been self-employed in my own Limited company for 10 years. I have very fortunately been un-affected work wise by the current horrendous pandemic. My customers are also unaffected. I am looking to take over my existing mortgage as me and my ex-partner have recently separated. The Mortgage advisor at Natwest seemed to be confident with my application as I am profitable, un-affected by Corona and have a 50% LTV.
However when I applied the underwriters denied my application using the reason that the jump in profit was to large in the recent tax year vs the previous one and they do not believe it can be sustained. This seems like very strange as the jump is actually not actually that large and percentage wise is in line with my previous years increases.
This decision seems very strange to me and feels more like they are either treating me unfairly due to be self employed or are after the 5% early repayment fee I am going to have to pay.

I just wondered if anyone else has experienced anything similar or if anyone can recommend fair lenders?

ACG

It does not seem that Corona has been used as an excuse to decline your application, more that they have concerns about your income in the longer term. 

It is an underwriters job to assess risk. You can put in an appeal if you wish and go from there. 

pat32

Thanks ACG.
In your experience if that was the case would they not come back with a lower offer rather than a flat out decline?
Or is it normal that they would decline any lending (even though the mortgage is already with them)?

pat32

Sorry, also have you had any experience of appeals? Would you recommend it is worth while or not?

Grumpy_chap

It is probably worth using a Mortgage Broker, who understands the self-employed market better and looks rationally at the SA302s and what your business actually is and your actual circumstances.
You also mentioned the low LTV, which must help your cause, but did not mention the income multiple you are seeking.  High Street banks are probably just being absurdly cautious right now.

ACG

I have only ever had one case declined with Natwest. I appealed it, they told me 2 underwriters check it before declining it and refused to overturn it. I re-applied to them 6 weeks later and they accepted it. 

A reduced loan amount could be a valid argument, I dont know anything about your application though so it is difficult to say. 

Thrugelmir

pat32 said:

In your experience if that was the case would they not come back with a lower offer rather than a flat out decline?

Not the remit of mortgage lenders to second guess your requirements.