NatWest mortgage declined by underwriters

Thrugelmir

justme200194 said:

Thrugelmir said:

justme200194 said:

We appealed as we were advised the underwriter should only have been going by our years accounts as a Ltd company! 

Where did you obtain that information from? 

.

Our broker ... we submitted our application based on one years accounts as self employed as Halifax were the only lender that would consider one years accounts. We have only been a Ltd company for one year

Doesn't mean that the underwriter will not consider other factors. Given the current economic conditions there will be a tightening of criteria. Underwriters themselves are instructed from higher up. 

justme200194

Thrugelmir said:

justme200194 said:

Thrugelmir said:

justme200194 said:

We appealed as we were advised the underwriter should only have been going by our years accounts as a Ltd company! 

Where did you obtain that information from? 

.

Our broker ... we submitted our application based on one years accounts as self employed as Halifax were the only lender that would consider one years accounts. We have only been a Ltd company for one year

Doesn't mean that the underwriter will not consider other factors. Given the current economic conditions there will be a tightening of criteria. Underwriters themselves are instructed from higher up. 

Yes, I appreciate this. We were advised by our broker however that the reason behind them declining was due to looking at previous years accounts which shouldn’t have come into question. The tightening of criteria does make me worry they will find something else to decline 2nd time around though so I’m not holding out much hope! 

Thrugelmir

justme200194 said:

Thrugelmir said:

justme200194 said:

Thrugelmir said:

justme200194 said:

We appealed as we were advised the underwriter should only have been going by our years accounts as a Ltd company! 

Where did you obtain that information from? 

.

Our broker ... we submitted our application based on one years accounts as self employed as Halifax were the only lender that would consider one years accounts. We have only been a Ltd company for one year

Doesn't mean that the underwriter will not consider other factors. Given the current economic conditions there will be a tightening of criteria. Underwriters themselves are instructed from higher up. 

Yes, I appreciate this. We were advised by our broker however that the reason behind them declining was due to looking at previous years accounts which shouldn’t have come into question. The tightening of criteria does make me worry they will find something else to decline 2nd time around though so I’m not holding out much hope! 

Lenders aren't going to ignore factual information in arriving at a decision.  Historic information forms part of the broader picture. 

[Deleted User]

If you are a self employed plumber for 5 years and then your accountant says 'you should go Ltd for tax and legal reasons', this doesn't mean you have 1 years accounts.  This means the plumber has 6 years of business performance and income documents.  The Ltd company might have 1 year, but the business itself has 6years to show performance.   

There is next to no way this would have been done as a 1 year accounts case on the above example (in the current climate).  This could however be placed with any number of lenders who will need 2+ years accounts. Subject to the delights of covid underwriting of course.    

I dont know your business or its set up but if its anything like the above then i am not surprised it got declined if it was submitted as 1 years accounts

justme200194

Deleted_User said:

If you are a self employed plumber for 5 years and then your accountant says 'you should go Ltd for tax and legal reasons', this doesn't mean you have 1 years accounts.  This means the plumber has 6 years of business performance and income documents.  The Ltd company might have 1 year, but the business itself has 6years to show performance.   

There is next to no way this would have been done as a 1 year accounts case on the above example (in the current climate).  This could however be placed with any number of lenders who will need 2+ years accounts. Subject to the delights of covid underwriting of course.    

I dont know your business or its set up but if its anything like the above then i am not surprised it got declined if it was submitted as 1 years accounts

Thank you for your input, perhaps this is something I need to clarify with our broker!

330d

Our Natwest progress - https://forums.moneysavingexpert.com/discussion/6168765/natwest-self-employed/p1

DaveWilson25

Hi,
Sorry for jumping on the bandwagon here but i'm having the same issues re Natwest and my broker. I had a potential issue re my credit report as I have everything registered at my parents address so in order to obtain my credit score (which is rated as excellent) I need to use this address. All explained to my broker who said it should be fine but when the DIP was submitted it said it would need to be referred. Again told not to worry and that he would explain the situation. Now i'm over three weeks from the application and all information going in and i've just been informed that the valuation has been rescheduled for a date almost two weeks later. 
Two questions: 
1) i know they book in the valuation as the application goes in (due to it being with Natwest) but can i assume they have at least checked the information i have provided and so the address shouldn't pose an issue? Everything else looks fine in terms of affordability, LTV and don't have any outstanding lines of credit. 
2) Should I be concerned about the valuation rescheduling? I guess in line with the above? Or is it just a case of them being busy (which was explained to me at the start of the process) or access issues with the seller?  
Would appreciate any advice!
Cheers,
Dave

Thrugelmir

Valuation is conducted by 3rd party. Will be subject to availability. 

Impossible to comment on the address issue. Always raises red flags though as to why and the risk of non disclosure of material facts. 

DaveWilson25

Cheers for the reply! Point taken re the address issue, but can I assume this would have been picked up as an issue during the initial stages of checks as all that was outstanding according to what my Broker could see was the valuation. I read that they do the two stages at the same time and that some people are advised offer pending valuation etc.?

Lipstick99

Nat West wont now lend me enough so I've gone elsewhere