Mortgage broker - ask me anything

[Deleted User]

K_S said:

kal-el said:

Hi I currently have a full mortgage offer with Halifax and have exchanged with a completion date of June 24. I have heard a lot about random audits between exchange and completion. I am compiling a file of docs (payslips, bank statements etc) on the off chance I get selected. I have had some very helpful advice from forumites about previous queries I had but was wondering if you could explain what exactly an audit entails and what docs they may ask for. I want to have them all at the ready just in case my solicitor requests funds and it triggers an audit. Thanks in advance. 

@kal-el It's very rare tbh, I'm not sure where you got the impression that it happens often. There's no identikit reason for a post-offer concern coming up, the reasons could be as varied as -

- concern that it may be a backdoor BTL (BTL purchase being disguised as a residential one to get over the large minimum deposit requirement)

- concern that applicant is misrepresenting themselves as employed when they are actually self-employed (usually ltd co directors)

- suspicions about the source of deposit being misrepresented

- doubts about the authenticity of the documents submitted

- doubts about the broker/firm who placed the case 

- any other potentially dodgy scenarios you can think of

Thanks for the reply, thankfully none of the above apply lol. I think I read on this forum that 1 in 12 applications are selected for audit although a lot of posts that discuss this are quite old now. This forum can be a wonderful source of information but on the flip side the horror stories can also make a person a little paranoid. 

K_S

kal-el said:

K_S said:

kal-el said:

Hi I currently have a full mortgage offer with Halifax and have exchanged with a completion date of June 24. I have heard a lot about random audits between exchange and completion. I am compiling a file of docs (payslips, bank statements etc) on the off chance I get selected. I have had some very helpful advice from forumites about previous queries I had but was wondering if you could explain what exactly an audit entails and what docs they may ask for. I want to have them all at the ready just in case my solicitor requests funds and it triggers an audit. Thanks in advance. 

@kal-el It's very rare tbh, I'm not sure where you got the impression that it happens often. There's no identikit reason for a post-offer concern coming up, the reasons could be as varied as -

- concern that it may be a backdoor BTL (BTL purchase being disguised as a residential one to get over the large minimum deposit requirement)

- concern that applicant is misrepresenting themselves as employed when they are actually self-employed (usually ltd co directors)

- suspicions about the source of deposit being misrepresented

- doubts about the authenticity of the documents submitted

- doubts about the broker/firm who placed the case 

- any other potentially dodgy scenarios you can think of

Thanks for the reply, thankfully none of the above apply lol. I think I read on this forum that 1 in 12 applications are selected for audit although a lot of posts that discuss this are quite old now. This forum can be a wonderful source of information but on the flip side the horror stories can also make a person a little paranoid. 

@kal-el That 1 in 12 statistic might well be true, but most of these flags will be resolved at the lender's end without the client or the broker ever being aware of it

[Deleted User]

K_S said:

kal-el said:

K_S said:

kal-el said:

Hi I currently have a full mortgage offer with Halifax and have exchanged with a completion date of June 24. I have heard a lot about random audits between exchange and completion. I am compiling a file of docs (payslips, bank statements etc) on the off chance I get selected. I have had some very helpful advice from forumites about previous queries I had but was wondering if you could explain what exactly an audit entails and what docs they may ask for. I want to have them all at the ready just in case my solicitor requests funds and it triggers an audit. Thanks in advance. 

@kal-el It's very rare tbh, I'm not sure where you got the impression that it happens often. There's no identikit reason for a post-offer concern coming up, the reasons could be as varied as -

- concern that it may be a backdoor BTL (BTL purchase being disguised as a residential one to get over the large minimum deposit requirement)

- concern that applicant is misrepresenting themselves as employed when they are actually self-employed (usually ltd co directors)

- suspicions about the source of deposit being misrepresented

- doubts about the authenticity of the documents submitted

- doubts about the broker/firm who placed the case 

- any other potentially dodgy scenarios you can think of

Thanks for the reply, thankfully none of the above apply lol. I think I read on this forum that 1 in 12 applications are selected for audit although a lot of posts that discuss this are quite old now. This forum can be a wonderful source of information but on the flip side the horror stories can also make a person a little paranoid. 

@kal-el That 1 in 12 statistic might well be true, but most of these flags will be resolved at the lender's end without the client or the broker ever being aware of it

Wow, never thought of it that way. I always assumed they just sent a scary letter or email and requested info. Never thought that they would quietly perform an audit and we would be none the wiser. Thanks for that. It's much appreciated. 

Mum2Boys_2

I am looking to remortgage, my mortgage term ends in October. I have just been promoted and am now on 34k a year with 3 dependants. My sister has also said she will come on my mortgage with me she earns £31k 
I am intending to remortgage and consolidate borrowing extra money which will make my LTV 65/35 to the bank 

I currently have lots of missed payments, are there “bad credit” lenders? 

Owleyes00

I worked for my employer (large local authority) years ago as a teenager and so my payslips had my parents address on. I started working for them again in September and noticed last month that while my address is my current address where I live with my partner, the postcode is still that of my parents house. I have changed this from now so May’s payslips onwards but we were hoping to apply for a mortgage in June or July this year. Is this going to be an issue?

K_S

Owleyes00 said:

I worked for my employer (large local authority) years ago as a teenager and so my payslips had my parents address on. I started working for them again in September and noticed last month that while my address is my current address where I live with my partner, the postcode is still that of my parents house. I have changed this from now so May’s payslips onwards but we were hoping to apply for a mortgage in June or July this year. Is this going to be an issue?

@Owleyes00 If you mean issue as in not getting a mortgage - unlikely. The lender may ask for an explanation if the specific lender you go with requires 3 months payslips and picks up on the inconcistency.

K_S

Mum2Boys_2 said:

I am looking to remortgage, my mortgage term ends in October. I have just been promoted and am now on 34k a year with 3 dependants. My sister has also said she will come on my mortgage with me she earns £31k 
I am intending to remortgage and consolidate borrowing extra money which will make my LTV 65/35 to the bank 

I currently have lots of missed payments, are there “bad credit” lenders? 

@Mum2Boys_2 Not sure what the question is, but yes there are specialist lenders who will consider lending to people with adverse credit history. 

Mum2Boys_2

K_S said:

Mum2Boys_2 said:

I am looking to remortgage, my mortgage term ends in October. I have just been promoted and am now on 34k a year with 3 dependants. My sister has also said she will come on my mortgage with me she earns £31k 
I am intending to remortgage and consolidate borrowing extra money which will make my LTV 65/35 to the bank 

I currently have lots of missed payments, are there “bad credit” lenders? 

@Mum2Boys_2 Not sure what the question is, but yes there are specialist lenders who will consider lending to people with adverse credit history. 

Thank you. 🤗

Capri84

Evening all. 

DIP passed and full mortgage application submitted. Mortgage company has already requested a valuation, but on our payslips a few issues came up;

I was shielding from January-April so all my payslips have OSP on them. My income did not drop and I was
paid In full. I returned to work on April 26th. 

My wife’s work was closed due to gov guidelines, but she returned to work in March on flexi-furlough. Her company paid her 80% of her unworked hours. The deductions ended up being something like £8 a month in the end - but it went down as ‘unpaid absence’. She’s now back at work working full contract hours as everything has now reopened. 

My MA asked me to put an email together stating all this, and he would upload to the Coventry portal. How likely is it that they will accept this reasoning, or is it likely they will want more paperwork or evidence of some sort? 

Completion date was pencilled in for June 11th... but it won’t be until the end of June that we each have a ‘normal’ payslip as they always work a month in arrears. 

K_S

@capri84 Your explanation is reasonable and you're both back full time and on full pay. In the absence of a full payslip, I suspect they'll ask for evidence of some sort, at least for your wife if her 100% income is material for affordablity.