Mortgage companies who are reasonable about SEISS

chillicheesedog

Yes, it was with HSBC. They asked the SEISS question,  we answered truthfully and explained how business has picked up again and it's proven in the bank statements. Got the offer.

sofsar

chillicheesedog said:

Yes, it was with HSBC. They asked the SEISS question,  we answered truthfully and explained how business has picked up again and it's proven in the bank statements. Got the offer.

What did they ask? My application from NatWest got declined last week over affordability and hubby has applied for both seiss and Iv been on furlough and working part time on top. 

So I’m worried what the next steps are as broker wrote to NatWest to see if I can borrow something near the amount and if not resubmit application with someone else 

chillicheesedog

They asked:
- Have you been impacted by covid
- If not, do you foresee it will impact you
- Does your business expect to return to trading as normal if social distancing continues for more than 3 months?
- Has your business relied on, or is it expecting to rely, on government grants/business banking loan support?
- Which government grant/business banking loan scheme are/have you applied for? (e.g. CBILS/BBLS/SEISS/CLBILS/CCFF)
These questions were asked during the application, there's a short break between phone calls where they sent us these via email and we responded.
We were then asked for Jan/Feb statements (pre covid), April's (peak) and they already had our most recent 3 month statements.
Bear in mind, we had this very beginning of July so they could have changed the process or criteria since.

samw2311

letsgoagain said:

HI folks,

I'm currently trying to apply for a mortgage, and thought I might try and gather some ideas that might also help others in a similar situation to myself.
Has anyone been successful with a mortgage application, having previously applied for SEISS? If so, which lender?
I've waited weeks for my appointment with NatWest, only to be told in the first few minutes that SEISS would be a problem (I don't know why they couldn't have told me that when I called to book an appointment). So others may find that useful to know.

My situation:
I've been self-employed for three years. Business is doing well and growing every year. Back in June it looked like I would lose some business (and I did lose a little, though not much), so I claimed the first grant. Things have improved since then and I'm on track for this to be my best year yet. Obviously I don't plan to claim the second grant.
I've had an offer accepted on a house and am now trying to get a mortgage finalised. It's not a very expensive house and I have a 20% deposit ready to go. Good credit history, no debts. All my business income goes into my NatWest account, and shows very steady income over the past several months. I thought it should be straightforward.

My experience with NatWest:
The NatWest advisor told me that their policy is this: if you've claimed the SEISS grant, they will multiply it by 4, and use that as your income. That's it. Your previous years don't matter (even though they ask for those tax returns), your last several months of business accounts don't matter. Only the SEISS grant. 
The advisor clearly thought this was a bit silly, and said she would try something for me. Her suggestion was that I could promise to pay back the grant, and she would put the application through just based on my income. If the underwriters approved (which, she thought, they probably wouldn't), then the mortgage would be issued pending confirmation that I'd paid back the grant to HMRC.

My take....
I understand the banks want to be cautious - and by taking the grant, yes I'm saying my business has been affected. But it's very frustrating that my previous years' growth and this year's recovery count for absolutely nothing, and my sustainable £50k income is reduced to £16k. Honestly it seems bonkers to me.....the grant is the only part of my income that I'm guaranteed to never get again, yet it's the only thing they'll take into account!

OK, that turned into a bit of a rant. I'm waiting for a call back from a broker so hopefully they can help. I also have an appointment with HSBC but that's two weeks away....they did ask for previous 60 days' accounts though so maybe they're willing to look at that.

In the meantime, I'd love to hear if anyone's had more success with a bank being a bit more discerning when it comes to self-employed people applying for mortgages.

I’m Self employed currently going through the same process , I can reccommend metro finance they have been great for me being self employed with a few complications, worth every penny as they’ve done all the dirty work for me finding a mortgage that I fit on to. 

Tuesday1510

We had exactly the same with NatWest. Partner is self employed and his accounts have gone up every year for the last 4 years by around 4K a year. Took the first grant just because we were advised to and NatWest declined. Currently on track to be the best business year he has had so let’s see what happens...