Self Employed - Can't seem to get a mortgage

croft08

So after reading about Habito on here. We went with them. Entered all our data. We have a 58% LTV, so fairly healthy deposit. Habito said we were all good and that Natwest were the best fit. It was rejected. Natwest refunded the Valuation Fee.  Habito are now saying that the least recommended provider on our recommendations is our best bet. However they are caviating it with a warning that the fact I'm self employed carries a lot of uncertainty for lenders because of Covid. Whats weird though is that my income hasnt been affected by Covid, yes the company profits are down a bit but certainly not in a loss or anything. I am PAYE and have been paying myself as usual. I wasn't asked to provide any extra information for Natwest, it was just a straight up rejection. We have instructed them to go ahead and apply for the other deal, but I'm just so concerned. The developer has already waited on us for over a month to sort a mortgage but we still don't have one. Apparently this application could take another 3 weeks.

We are so dissheartened as with such a large deposit and 58% LTV we thought this would be easy. Does anyone have any any other mortgage providers that are lending to self employed right now?

haras_n0sirrah

Natwest is probably being the strictest on self employed. Who were the other lenders on the list?

csgohan4

Anything short of normal, the conveyor belt brokers struggle, Self employed is out of their comfort area, especially so when lenders have tightened their belts. 

Given your deposit, it should be doable, find a different broker, plenty on her or local who are not conveyor belt, paid or fee free your choice

Process90

croft08 said:

So after reading about Habito on here. We went with them. Entered all our data. We have a 58% LTV, so fairly healthy deposit. Habito said we were all good and that Natwest were the best fit. It was rejected. Natwest refunded the Valuation Fee.  Habito are now saying that the least recommended provider on our recommendations is our best bet. However they are caviating it with a warning that the fact I'm self employed carries a lot of uncertainty for lenders because of Covid. Whats weird though is that my income hasnt been affected by Covid, yes the company profits are down a bit but certainly not in a loss or anything. I am PAYE and have been paying myself as usual. I wasn't asked to provide any extra information for Natwest, it was just a straight up rejection. We have instructed them to go ahead and apply for the other deal, but I'm just so concerned. The developer has already waited on us for over a month to sort a mortgage but we still don't have one. Apparently this application could take another 3 weeks.

We are so dissheartened as with such a large deposit and 58% LTV we thought this would be easy. Does anyone have any any other mortgage providers that are lending to self employed right now?

58% LTV and banks are still rejecting.

It's ridiculous out there, it really is.

dunstonh

Have you tried a real broker? (i.e. A localised whole of market adviser)

croft08

haras_n0sirrah said:

Natwest is probably being the strictest on self employed. Who were the other lenders on the list?

Oh there was a range: Halifax, RBS, Santander, HSBC, Virgin, nationwide, Coventry bs, Leeds bs, Skipton, TSB, Clydesdale, Yorkshire, post office, Accord, Barclays

croft08

Process90 said:

croft08 said:

So after reading about Habito on here. We went with them. Entered all our data. We have a 58% LTV, so fairly healthy deposit. Habito said we were all good and that Natwest were the best fit. It was rejected. Natwest refunded the Valuation Fee.  Habito are now saying that the least recommended provider on our recommendations is our best bet. However they are caviating it with a warning that the fact I'm self employed carries a lot of uncertainty for lenders because of Covid. Whats weird though is that my income hasnt been affected by Covid, yes the company profits are down a bit but certainly not in a loss or anything. I am PAYE and have been paying myself as usual. I wasn't asked to provide any extra information for Natwest, it was just a straight up rejection. We have instructed them to go ahead and apply for the other deal, but I'm just so concerned. The developer has already waited on us for over a month to sort a mortgage but we still don't have one. Apparently this application could take another 3 weeks.

We are so dissheartened as with such a large deposit and 58% LTV we thought this would be easy. Does anyone have any any other mortgage providers that are lending to self employed right now?

58% LTV and banks are still rejecting.

It's ridiculous out there, it really is.

We even offered to lower it to 53 and were told it wouldn't make a difference.

haras_n0sirrah

So out of that lot who are they recommending? 

croft08

haras_n0sirrah said:

So out of that lot who are they recommending? 

Accord.. but as I said, they didn't seem that confident.

croft08

dunstonh said:

Have you tried a real broker? (i.e. A localised whole of market adviser)

Not yet, after reading about Habito on here and them not highlighting any issues I didn't even envisage any problems so stuck with them. I'm in two minds, do we wait and see our success with their other recommendation comes through or cut our losses and try a high Street broker.

MovingForwards

Cut your losses, you need an individual broker who will give you the necessary attention and confidence that they are working for / with you.

Due to being S/E it is harder at the moment as lenders have tightened up, but with the right person guiding you, doing the legwork, they can place you with the right lender.

You are allowed to approach brokers who post on MSE, they cannot make first contact. Have a read through Haras' posts and see how she comes across, from what I've seen it would be worth you having a chat with her.

If it wasn't for one of the brokers who post, I wouldn't be sitting in my own home replying to you.