NatWest mortgage declined by underwriters

Tuesday1510

Hello, NatWest decline our mortgage application at underwriting stage due to ‘sustainability of income’ as my parter is a self-employed builder. He stopped working for around 6 weeks ish when full lock down was enforced, only because we live with a vulnerable person atm, and then went back to work as normal. In fact, he’s busier now than before, working 7 days a week! He got the self-employed grant and was also told to claim universal credit (he had two months worth of this but have now cancelled). NatWest were apparently really not happy about the UC - but we were told by the government to apply for this! He earns a good income that has increased every year as shown on his accounts for the last 4 years. Has anyone got any experience of NatWest appeals being made and how likely they will overturn this decision? 

We have emailed the accountant for a copy of his forecast for this year and a confirmation of the cancelled UC. 

We have absolutely no worries about his income in the future and if there is a second spike he will still be working through it.

MovingForwards

https://forums.moneysavingexpert.com/discussion/6099476/first-time-buyer-mortgage-application#latest

They have tightened up the underwriting where adverse history is involved.

Ask your broker to find another lender.

Kiwistrawb1990

MovingForwards said:

https://forums.moneysavingexpert.com/discussion/6099476/first-time-buyer-mortgage-application#latest

They have tightened up the underwriting where adverse history is involved.

Ask your broker to find another lender.

The adverse isn't the reason it was declined though as posted above or that's what they'd say. 
Always worth appealing. 

TWIGLET1234

Tuesday1510 said:

Hello, NatWest decline our mortgage application at underwriting stage due to ‘sustainability of income’ as my parter is a self-employed builder. He stopped working for around 6 weeks ish when full lock down was enforced, only because we live with a vulnerable person atm, and then went back to work as normal. In fact, he’s busier now than before, working 7 days a week! He got the self-employed grant and was also told to claim universal credit (he had two months worth of this but have now cancelled). NatWest were apparently really not happy about the UC - but we were told by the government to apply for this! He earns a good income that has increased every year as shown on his accounts for the last 4 years. Has anyone got any experience of NatWest appeals being made and how likely they will overturn this decision? 

We have emailed the accountant for a copy of his forecast for this year and a confirmation of the cancelled UC. 

We have absolutely no worries about his income in the future and if there is a second spike he will still be working through it.

We have an application in at the moment with a different lender and it's been in underwriting for days. Half our income is made up of my wages and half is made up of my husband's Director's Dividends from his own construction company. They do seem to be concentrating very much on the sustainability of my husband's income in the questions, and have asked more than once about any impact on the income as a result of Covid19. My husband has had no time off whatsoever and claimed no help from the government. I think they will view the UC and Self Employment Grant as an admission on your husband's part that his income was affected and maybe that is why they have declined? It's daft it its about the grant because you were allowed to claim that and still continue working, so who wouldn't?? Is the Self Employment income the only income you guys have in the application?

jamielutz1987

@Tuesday1510 I hope you are using a broker. There may be lenders better suited to your circumstances. In your place I wouldn't waste any more time with NatWest.

Tuesday1510

Yes, we are using a broker. She was meant to apply somewhere else along side appealing, as our exchange date is tomorrow. She has not mentioned anything about applying somewhere else. We have booked in with a really trusted broker with experience of 28 years on Tuesday to apply with another lender if NatWest still decline. So the plan is to get the NatWest appeal decision this week ready in time for Tuesday. 
We submitted building contracts as proof of work and income until December, an accountants forecast with the same income as last year, and have also cleared all of our credit card debts to bring up affordability a bit more. Who knows what will happen!

Tuesday1510

The reason we were declilned was purely because of the self-employed sustainability. 

Kiwistrawb1990

Tuesday1510 said:

Yes, we are using a broker. She was meant to apply somewhere else along side appealing, as our exchange date is tomorrow. She has not mentioned anything about applying somewhere else. We have booked in with a really trusted broker with experience of 28 years on Tuesday to apply with another lender if NatWest still decline. So the plan is to get the NatWest appeal decision this week ready in time for Tuesday. 
We submitted building contracts as proof of work and income until December, an accountants forecast with the same income as last year, and have also cleared all of our credit card debts to bring up affordability a bit more. Who knows what will happen!

How soon did you find out after application that you'd been declined? We are awaiting some form of decision and the anxiety is killing me. 

Thrugelmir

Challenging times may well lie ahead. Lenders will therefore be naturally cautious. The initial pent up demand may subsequently fade. 

Tuesday1510

Kiwistrawb1990 said:

Tuesday1510 said:

Yes, we are using a broker. She was meant to apply somewhere else along side appealing, as our exchange date is tomorrow. She has not mentioned anything about applying somewhere else. We have booked in with a really trusted broker with experience of 28 years on Tuesday to apply with another lender if NatWest still decline. So the plan is to get the NatWest appeal decision this week ready in time for Tuesday. 
We submitted building contracts as proof of work and income until December, an accountants forecast with the same income as last year, and have also cleared all of our credit card debts to bring up affordability a bit more. Who knows what will happen!

How soon did you find out after application that you'd been declined? We are awaiting some form of decision and the anxiety is killing me. 

we applied on the 4th June and found out on the 18th. We appealed the decision a couple of days after and submitted contracts confirming that my partner is working until the end of December, his accountants predicted forecast and paid off all the credit cards completely - still declined and found out today. Have a meeting with a specialist broker tomorrow to try and sort it out. So frustrating!

Kiwistrawb1990

Tuesday1510 said:

Kiwistrawb1990 said:

Tuesday1510 said:

Yes, we are using a broker. She was meant to apply somewhere else along side appealing, as our exchange date is tomorrow. She has not mentioned anything about applying somewhere else. We have booked in with a really trusted broker with experience of 28 years on Tuesday to apply with another lender if NatWest still decline. So the plan is to get the NatWest appeal decision this week ready in time for Tuesday. 
We submitted building contracts as proof of work and income until December, an accountants forecast with the same income as last year, and have also cleared all of our credit card debts to bring up affordability a bit more. Who knows what will happen!

How soon did you find out after application that you'd been declined? We are awaiting some form of decision and the anxiety is killing me. 

we applied on the 4th June and found out on the 18th. We appealed the decision a couple of days after and submitted contracts confirming that my partner is working until the end of December, his accountants predicted forecast and paid off all the credit cards completely - still declined and found out today. Have a meeting with a specialist broker tomorrow to try and sort it out. So frustrating!

Had you had your valuation done with Natwest? Just trying to work out the chances of us being declined at this stage, our application went in 10 days ago and our valuation was done last week.
I hope you get it sorted xxx