Claimed Government grant and been able to get a mortgage?

mitt123

My husband is a self employed carpenter who had to taken time off over the lockdown as 85% of his work was in peoples homes. Hes now busier than ever. We have been turned down by nationwide (who we have our current mortgage with). We do have a loan/cc outstanding and nationwide mentioned our constant use of overdraft as a potential problem. Our MA said the fact that my husband had taken the government grant may also go against us? Has anyone taken the grant and still been accepted for mortgage? If so, which company?
Many thanks in advance

Sparklestar1127

First grant yes, but had to prove recovery by way of business bank statements and the mortgage offer is with Platform. MA has told us not to claim 2nd grant yet. We also have an application going through with Nationwide as our current mortgage is with them, and will save us the ERC but they haven’t asked any questions yet. Only on working day 8. 

Was your DIP referred then accepted? 

izoomzoom

I claimed first grant, but haven't claimed second grant (yet). Hoping to exchange and complete this week. Lender never asked to see my business bank account (where SEISS was paid into) nor any questions about covid impact, but I believe we just got extremely fortunate, as I've heard of others who applied similar time (July) and had many Qs from that lender.

mitt123

Yes, he is busier than ever. He has also been told at mo not to take second grant. 
Our mortgage advisor said we were easily within the affordability but they were concerned about our monthly outgoings. Our parents have offered to clear debts but MA has said this isnt necessary?
Its going to cost us 5k to buy out of nationwide 😫
What is platform? (Im new!)

mitt123

izoomzoom said:

I claimed first grant, but haven't claimed second grant (yet). Hoping to exchange and complete this week. Lender never asked to see my business bank account (where SEISS was paid into) nor any questions about covid impact, but I believe we just got extremely fortunate, as I've heard of others who applied similar time (July) and had many Qs from that lender.

Do you mind me asking who you have gone with mortgage?

MWT

mitt123 said:

We do have a loan/cc outstanding and nationwide mentioned our constant use of overdraft as a potential problem. Our MA said the fact that my husband had taken the government grant may also go against us?

I am not a MA, but based on what you've said I don't think that the grant is your most pressing problem, you can counter that with the current business activity.

Loans/CC outstanding are not necessarily an issue if they are moderate and all serviced regularly, but always in overdraft is going to ring alarm-bells for any lender, especially if you are increasing the mortgage...

Listen to your advisor, he flagged monthly outgoings as an issue which is back to the overdraft problem.

What can you do to get back in the black and stay there... ?

haras_n0sirrah

I have got clients mortgages who have taken both the bounce back and the seiss grant
The last 3 months bank statements for the business are currently what is key.

SueF1

haras_n0sirrah said:

I have got clients mortgages who have taken both the bounce back and the seiss grant
The last 3 months bank statements for the business are currently what is key.

We are applying through a broker for a mortgage. Partner claimed SEISS and BBL but like OP, is busier than ever. Broker has taken 3 months business statements as she said the same, these are key and show the recovery. She seemed positive.
Good luck! 

izoomzoom

mitt123 said:

Do you mind me asking who you have gone with mortgage?

Santander

mitt123

MWT said:

mitt123 said:

We do have a loan/cc outstanding and nationwide mentioned our constant use of overdraft as a potential problem. Our MA said the fact that my husband had taken the government grant may also go against us?

I am not a MA, but based on what you've said I don't think that the grant is your most pressing problem, you can counter that with the current business activity.

Loans/CC outstanding are not necessarily an issue if they are moderate and all serviced regularly, but always in overdraft is going to ring alarm-bells for any lender, especially if you are increasing the mortgage...

Listen to your advisor, he flagged monthly outgoings as an issue which is back to the overdraft problem.

What can you do to get back in the black and stay there... ?

Just to clairfy, MA hasnt flagged up any concerns. Nationwide did.
Our parents have kindly offered to clear them but as theyll still be on last 3 month bank statements he wasnt really bothered about it

Thrugelmir

Unfortunately your credit history is set in stone. Improving it going forward needs to be a priority objective. The reference to the overdraft usage in particular.