TSB mortgage offer via a national broker

walkeia

Hi everyone,

I was just wondering if I had any right to complain to TSB about a re-mortgage application via a national mortgage broker which I decided not to pursue after feeling their latest information request was unreasonable. I am a partner at a firm and have a small limited company I hold my investments in.

They requested piecemeal: personal - 3 months payslips, 3 months personal bank statements, 1x historic full tax return which I had to get from my accountant; old firm P60 from tax year end 2018; details of deferred remuneration. For my own company they requested - 3 months company statements; company brokerage account statements. The mortgage is sub-65% LTV and 4 times covered by my net assets documented above; the above was also a decent time sink.

This I thought this was extensive but not totally unusual; but what has me questioning if they ever wanted to extend me an offer was they have now requested a signed letter from my LLP stating we have been unaffected by COVID-19. While the business continues to do well I felt it an unreasonable request given the huge impact it has had in every aspect of the economy and large over-collateralisation of the mortgage already demonstrated. I'm not comfortable handing over a letter saying we've been unaffected as it's a given everyone in the country has been.

I'd be interested in views; perhaps I am naive having re-mortgaged smoothly in the past - albeit with my existing provider.

Thank you

jamielutz1987

I fully understand your frustration but unfortunately lenders do have leeway to adjust their requirements per the current environment.

I suspect the broker may have gone for the best rate at the cost of a common sense approach to underwriting.

Unfortunately now isn't a good time to remortgage for anyone with a variable element of remuneration - be that in the form of employed commission/overtime/bonus or self employed income. 

The best option may be to switch products and stay with your current lender for now.

[Deleted User]

Anyone with a sniff of self employment will be getting exactly the same treatment over the last 3 months. 

And if you have a slightly complex business structure then expect more questions. 

The broker should have headlined this and spoken the case through with tsb prior to submission and maybe chosen a different lender if your priority was for ease of the transaction. 

Not sure what you expect a lender to do re the covid point though?  Of course they want to know if business has been affected.   If you were doing business with someone wouldn't you want to know they had the ability to pay you in this current climate?

You didn't remortgage with your existing provider in the past. You did a product transfer and that has zero underwriting to it.  One of the benefits of picking a good lender who offers good existing client rates is this easy product transfer option. 
FYI, tsb aren't great for existing customer rates so you are likely to want to switch again. Would have made more sense to remortgage to a lender where its more likely you would be able to stay with them and do a non underwritten product transfer in the future. 

haras_n0sirrah

every tsb mortgage has to have a covid impact form submitted. I had to send one in for one of my cases today- she is an nhs nurse.
It isn't personal and they won't waive it
Not every lender has this requirement but avoid natwest as their form for self employed impact has lots of questions

[Deleted User]

And avoid Coventry.  Full 3 months business accounts for this year and same period last year was asked for on one of my cases.  They still threw it out on income concerns 

csgohan4

we got asked the same question if covid 19 will be affecting me. All standard SOP. You will find alot of lenders will be asking this, especially so in your position

walkeia

Thanks all for your responses. I take on board what you have all said and will move on re-mortgaging with my existing provider.