Mortgage broker - ask me anything

greenpanda

Thanks @K_S I don't think there is anything unusual. A very small amount of student loan to pay off, but no other credit. 

Last week we had questions about whether employment was affected by covid (it wasn't) so I'm hoping that is it? 

K_S

Madeinireland101 said:

Hi,
My daughter works for NHS Professionals on the NHS Bank as a nurse. It’s a zero hours contract but is generally better thought of I think as there is no shortage of work and she can pick and choose shifts. She was abroad until April last year and she returned to the UK due to the pandemic. initially she had no thoughts of a house and just did a few odd shifts for a while to earn some money. Eventually she realised that she wouldn’t be returning abroad for a while and decided to buy a house in the UK - so over the last 9 months she ramped up her shifts appropriately. So she now has a 12 month record of employment using them but it’s very lobsided in that the earnings in the first 3 months were low. She got a DIP with Halifax (3 times actually) where they used her last 3 months payslips  to determine the amount they could lend. She has now found a house and is in the process of completing the process with them - except they now want the last 12 months worth of weekly payslips which was a bit if a surprise. If they are going to take the average then the amount they would be prepared to lend, I suspect, would fall short of what she requires and she is now worried about this. We will find out next week. She has a large deposit meaning her LTV ratio would be less than 75%.

i find it strange that Halifax don’t ask for the same information they requested for the DIP. What’s the point of the DIP then? It appears to have given us false hope on the amount that would be lent - hopefully not.

Is there anything else we could do apart from find additional deposit? Are there any other lenders we could investigate, while we wait, that would look favourably on a decent 9 month record which if annualised up would allow us to borrow an appropriate amount. I have tried Nationwide as they have the helping hand feature but they would only allow the income to be counted if she wasn’t the primary source of income. Most others seem to require a 12 month record and of course that falls short with the income multiples.

She is trying to borrow £235K with a £85k deposit. Her income for the year is approx £43k and for the last 9 months would annualise to more than £50k. For the last 6 months would annualise to £55k
Thanks...

@madeinireland101 Is there any particular reason you picked Halifax? Their criteria for zero-hours contracts is pretty clear

- The total of the last 12 calendar months income only will be used and all the income must be evidenced.

- 12 months payslips are required to evidence the income

So, they are likely to take 43k as the income with maximum lending around 205k or so.

A DIP is only as good as the information you put in, so if you put in 55k, you'll get that. If you put in 43k, you'll get a corresponding number.

If Halifax doesn't work out I would recommend getting in touch with a broker who can place the case accordingly (if at all possible) or else all she needs to do is wait for a few more months (appreciate she may lose this property though).

K_S

greenpanda said:

Thanks @K_S I don't think there is anything unusual. A very small amount of student loan to pay off, but no other credit. 

Last week we had questions about whether employment was affected by covid (it wasn't) so I'm hoping that is it? 

@greenpanda Hopefully it'll come through soon. Santander asks for a covid statement as part of the initial packaging so it's surprising that you're being asked this 6 weeks into the application. Could be due to the sector you work in.

Capri84

Hoping for a final answer from CBS this week. They were after an employee reference from my wife... and then her latest P60 turned up yesterday which we forwarded to MA. Any chance they’ll accept this rather than waiting for the employee reference to be returned? Dying for the call to say they’ve offered the mortgage. 

Madeinireland101

K_S said:

Madeinireland101 said:

Hi,
My daughter works for NHS Professionals on the NHS Bank as a nurse. It’s a zero hours contract but is generally better thought of I think as there is no shortage of work and she can pick and choose shifts. She was abroad until April last year and she returned to the UK due to the pandemic. initially she had no thoughts of a house and just did a few odd shifts for a while to earn some money. Eventually she realised that she wouldn’t be returning abroad for a while and decided to buy a house in the UK - so over the last 9 months she ramped up her shifts appropriately. So she now has a 12 month record of employment using them but it’s very lobsided in that the earnings in the first 3 months were low. She got a DIP with Halifax (3 times actually) where they used her last 3 months payslips  to determine the amount they could lend. She has now found a house and is in the process of completing the process with them - except they now want the last 12 months worth of weekly payslips which was a bit if a surprise. If they are going to take the average then the amount they would be prepared to lend, I suspect, would fall short of what she requires and she is now worried about this. We will find out next week. She has a large deposit meaning her LTV ratio would be less than 75%.

i find it strange that Halifax don’t ask for the same information they requested for the DIP. What’s the point of the DIP then? It appears to have given us false hope on the amount that would be lent - hopefully not.

Is there anything else we could do apart from find additional deposit? Are there any other lenders we could investigate, while we wait, that would look favourably on a decent 9 month record which if annualised up would allow us to borrow an appropriate amount. I have tried Nationwide as they have the helping hand feature but they would only allow the income to be counted if she wasn’t the primary source of income. Most others seem to require a 12 month record and of course that falls short with the income multiples.

She is trying to borrow £235K with a £85k deposit. Her income for the year is approx £43k and for the last 9 months would annualise to more than £50k. For the last 6 months would annualise to £55k
Thanks...

@madeinireland101 Is there any particular reason you picked Halifax? Their criteria for zero-hours contracts is pretty clear

- The total of the last 12 calendar months income only will be used and all the income must be evidenced.

- 12 months payslips are required to evidence the income

So, they are likely to take 43k as the income with maximum lending around 205k or so.

A DIP is only as good as the information you put in, so if you put in 55k, you'll get that. If you put in 43k, you'll get a corresponding number.

If Halifax doesn't work out I would recommend getting in touch with a broker who can place the case accordingly (if at all possible) or else all she needs to do is wait for a few more months (appreciate she may lose this property though).

The reason we went for Halifax is that the criteria for NHS bank is last 3 consecutive payslips not the 12 months you have stated. They treat NHS bank different to other zero hour contracts for some reason. This is stated in their Mortgage lending criteria. I suspect the agent we called did not realise there was a difference in the way they are treated.
As it happens I have managed to find another lender (yet to speak to them as it was Sunday) Principality and their lending criteria states last 6 months payslips which should be perfect for us so I will be contacting them tomorrow morning to confirm.

K_S

Madeinireland101 said:

K_S said:

Madeinireland101 said:

Hi,
My daughter works for NHS Professionals on the NHS Bank as a nurse. It’s a zero hours contract but is generally better thought of I think as there is no shortage of work and she can pick and choose shifts. She was abroad until April last year and she returned to the UK due to the pandemic. initially she had no thoughts of a house and just did a few odd shifts for a while to earn some money. Eventually she realised that she wouldn’t be returning abroad for a while and decided to buy a house in the UK - so over the last 9 months she ramped up her shifts appropriately. So she now has a 12 month record of employment using them but it’s very lobsided in that the earnings in the first 3 months were low. She got a DIP with Halifax (3 times actually) where they used her last 3 months payslips  to determine the amount they could lend. She has now found a house and is in the process of completing the process with them - except they now want the last 12 months worth of weekly payslips which was a bit if a surprise. If they are going to take the average then the amount they would be prepared to lend, I suspect, would fall short of what she requires and she is now worried about this. We will find out next week. She has a large deposit meaning her LTV ratio would be less than 75%.

i find it strange that Halifax don’t ask for the same information they requested for the DIP. What’s the point of the DIP then? It appears to have given us false hope on the amount that would be lent - hopefully not.

Is there anything else we could do apart from find additional deposit? Are there any other lenders we could investigate, while we wait, that would look favourably on a decent 9 month record which if annualised up would allow us to borrow an appropriate amount. I have tried Nationwide as they have the helping hand feature but they would only allow the income to be counted if she wasn’t the primary source of income. Most others seem to require a 12 month record and of course that falls short with the income multiples.

She is trying to borrow £235K with a £85k deposit. Her income for the year is approx £43k and for the last 9 months would annualise to more than £50k. For the last 6 months would annualise to £55k
Thanks...

@madeinireland101 Is there any particular reason you picked Halifax? Their criteria for zero-hours contracts is pretty clear

- The total of the last 12 calendar months income only will be used and all the income must be evidenced.

- 12 months payslips are required to evidence the income

So, they are likely to take 43k as the income with maximum lending around 205k or so.

A DIP is only as good as the information you put in, so if you put in 55k, you'll get that. If you put in 43k, you'll get a corresponding number.

If Halifax doesn't work out I would recommend getting in touch with a broker who can place the case accordingly (if at all possible) or else all she needs to do is wait for a few more months (appreciate she may lose this property though).

The reason we went for Halifax is that the criteria for NHS bank is last 3 consecutive payslips not the 12 months you have stated. They treat NHS bank different to other zero hour contracts for some reason. This is stated in their Mortgage lending criteria. I suspect the agent we called did not realise there was a difference in the way they are treated.
As it happens I have managed to find another lender (yet to speak to them as it was Sunday) Principality and their lending criteria states last 6 months payslips which should be perfect for us so I will be contacting them tomorrow morning to confirm.

@madeinireland101 In that case you should definitely escalate it with Halifax. Shouldn't have to use another lender just because a Halifax employee messed up. No need to pay Principality rates if you are eligible for Halifax. Good luck, hope it works out in the end!

Madeinireland101

K_S said:

Madeinireland101 said:

K_S said:

Madeinireland101 said:

Hi,
My daughter works for NHS Professionals on the NHS Bank as a nurse. It’s a zero hours contract but is generally better thought of I think as there is no shortage of work and she can pick and choose shifts. She was abroad until April last year and she returned to the UK due to the pandemic. initially she had no thoughts of a house and just did a few odd shifts for a while to earn some money. Eventually she realised that she wouldn’t be returning abroad for a while and decided to buy a house in the UK - so over the last 9 months she ramped up her shifts appropriately. So she now has a 12 month record of employment using them but it’s very lobsided in that the earnings in the first 3 months were low. She got a DIP with Halifax (3 times actually) where they used her last 3 months payslips  to determine the amount they could lend. She has now found a house and is in the process of completing the process with them - except they now want the last 12 months worth of weekly payslips which was a bit if a surprise. If they are going to take the average then the amount they would be prepared to lend, I suspect, would fall short of what she requires and she is now worried about this. We will find out next week. She has a large deposit meaning her LTV ratio would be less than 75%.

i find it strange that Halifax don’t ask for the same information they requested for the DIP. What’s the point of the DIP then? It appears to have given us false hope on the amount that would be lent - hopefully not.

Is there anything else we could do apart from find additional deposit? Are there any other lenders we could investigate, while we wait, that would look favourably on a decent 9 month record which if annualised up would allow us to borrow an appropriate amount. I have tried Nationwide as they have the helping hand feature but they would only allow the income to be counted if she wasn’t the primary source of income. Most others seem to require a 12 month record and of course that falls short with the income multiples.

She is trying to borrow £235K with a £85k deposit. Her income for the year is approx £43k and for the last 9 months would annualise to more than £50k. For the last 6 months would annualise to £55k
Thanks...

@madeinireland101 Is there any particular reason you picked Halifax? Their criteria for zero-hours contracts is pretty clear

- The total of the last 12 calendar months income only will be used and all the income must be evidenced.

- 12 months payslips are required to evidence the income

So, they are likely to take 43k as the income with maximum lending around 205k or so.

A DIP is only as good as the information you put in, so if you put in 55k, you'll get that. If you put in 43k, you'll get a corresponding number.

If Halifax doesn't work out I would recommend getting in touch with a broker who can place the case accordingly (if at all possible) or else all she needs to do is wait for a few more months (appreciate she may lose this property though).

The reason we went for Halifax is that the criteria for NHS bank is last 3 consecutive payslips not the 12 months you have stated. They treat NHS bank different to other zero hour contracts for some reason. This is stated in their Mortgage lending criteria. I suspect the agent we called did not realise there was a difference in the way they are treated.
As it happens I have managed to find another lender (yet to speak to them as it was Sunday) Principality and their lending criteria states last 6 months payslips which should be perfect for us so I will be contacting them tomorrow morning to confirm.

@madeinireland101 In that case you should definitely escalate it with Halifax. Shouldn't have to use another lender just because a Halifax employee messed up. No need to pay Principality rates if you are eligible for Halifax. Good luck, hope it works out in the end!

Thanks - Yes we spoke to another advisor and pointed out the problem and they were going to point out the mistake to the guy who was initially dealing with us. We should hear back on Monday. The problem is the last 3 consecutive payslips are not good enough either due to recent holiday -  we feel sure it would make more sense for that to be 3 months as our daughter in paid weekly. Principality is a backup in case Halifax doesn’t work out but in actual fact they are cheaper on repayments for a 5 year fix compared to Halifax although their setup fee is higher £953 / month compared to £968.

rennes99

I have a quick question about a Natwest mortgage and the AIP process....
I applied through a broker, and was very open about some adverse credit on my report from 3 years ago (few multiple missed payments, including a "3" on a credit card) and the AIP was accepted.
Looking at all 3 of my credit reports however, I cant see any soft searches or anything relating to when that AIP was granted.
I have progressed to Full Application on Friday, and have seen hard searches on my Experian and Equifax scores today.
My question is, will the Natwest AIP through the broker (which they sent me a screenshot of) have been given with a credit search, which i just can't see for some reason yet? I'm worried that Natwest didnt do searches of my credit history and relied on the info I gave in my AIP application!!!

K_S

@rennes99 I don't know about how it shows on reports but I can say with certainty that a NatWest AIP would not be issued without a soft-footprint or hard-footprint credit check.

rennes99

K_S said:

@rennes99 I don't know about how it shows on reports but I can say with certainty that a NatWest AIP would not be issued without a soft-footprint or hard-footprint credit check.

Thanks KS - good to know hopefully they have taken into account my adverse history in that case!