Mortgage broker - ask me anything

K_S

r9230245 said:

I had a couple of returned payments on my bank statement for a phone bill for about £30, they both appeared on my bank statements I used for the mortgage application. 

Not on my credit file though as they tried to take the payment again a few days later and did so successfully as I added the funds in. It was just total oversight on my behalf as I was really stressed with work and forgot to move some funds into my current account for that direct debit (one was in December and the other in March) 

Am I likely to get rejected on that basis? 

@r9230245 There's no general answer to your question as it depends on context, the lender, the underwriter - the kind of lender, whether they've asked for bank statements or not (not all lenders do for all applications), background financial circumstances, etc, etc. I hope that makes sense.

bubby08

@K_S would it be normal for the lender to enter a hard search prior to a survey, also my mortgage broker has advised they have only now submitted the application but the heard search was on the 04/05 does this mean I will be subject to a further one down the line?

Best Regards

K_S

bubby08 said:

@K_S would it be normal for the lender to enter a hard search prior to a survey, also my mortgage broker has advised they have only now submitted the application but the heard search was on the 04/05 does this mean I will be subject to a further one down the line?

Best Regards

@bubby08 I wouldn't stress too much about the date of the hard search. Sometimes it's just the DIP soft-footprint that's upgraded to a hard-footprint, the date shown on the credit-file can often be incorrect, etc.

As far as hard-footprint credit checks are concerned, it's usually one per application.

K_S

SugarDatesAndPistachios said:

Help - I am on maternity leave and due back on the 31st of this month. Whilst on maternity I was awarded another 2 sessions of salaried work which naturally would come into effect when I returned to work. This effectively has doubled my pay. As a result my pre maternity leave payslips have my old pay (50% less) 

For mortgage purposes, my lender says in its guidelines ‘in cases of maternity, lending will be assessed on return to work pay’. Great, I thought, I have a letter from NHS confirming my return to work date and new pay. All within the next month, or this month really!

However now the lender has says they cannot accept this, purely as I am on maternity leave? Apparently if it was a new job I was going to start, this would be sufficient?!? It’s also because it’s not just a small increase in pay, apparently. 

I feel this is really discriminatory, if I had not taken leave I would be on this pay and if I had quit and then returned to this same job, it would also be okay? 

Is this legal? 

@sugardatesandpistachios I don't have any comment on the legality and can't speak for your specific lender as each lender will have differing policies on pay-rise that aren't reflected on payslips yet.

But if your pay-rise is permanent, you're joining on 31st May and the pay-rise is in effect on 31-May, I'm pretty sure there are mainstream lenders that will consider as of today.

K_S

@SugarDatesAndPistachios Again, I can't comment on the legality of their approach as that isn't my area of expertise. But from the limited info in your post, generally speaking, HSBC appear to be operating as per their policy/criteria when faced with a pay-rise in excess of 20% which isn't supported by a payslip yet. I would have expected the broker to know this and run it past them before putting in an application.

If you feel that you are being discriminated against, it might be worth you or your broker putting in a complaint on those grounds, perhaps that will trigger a different response.

Alternatively, if you're faced with a hard-no, this should be fairly easy to place with an alternate mainstream lender unless there's some particular set of reasons why it can only go with HSBC.

SugarDatesAndPistachios

Thanks @K_S, HSBC look favourable on BTL income, and we want a big mortgage!

My salary is actually pro rata, so technically I am not getting a pay rise, just contracted to work another day. Do you think that’ll help? 

The broker is shocked by the decision, we’ve both looked at their guidelines and it looks like they shouldn’t have a problem, there’s been no notes next to the rejection of the return to work salary. We will know more tomorrow. 

bubby08

Hi @K_S thank you so much. My main concern here is if and when the run another hard search. I shall assume this is the one and only hard search they do. I had a call from countryside regarding a valuation do you have any idea what this will entail. Thank you so much.

K_S

SugarDatesAndPistachios said:

Thanks @K_S, HSBC look favourable on BTL income, and we want a big mortgage!

My salary is actually pro rata, so technically I am not getting a pay rise, just contracted to work another day. Do you think that’ll help? 

The broker is shocked by the decision, we’ve both looked at their guidelines and it looks like they shouldn’t have a problem, there’s been no notes next to the rejection of the return to work salary. We will know more tomorrow. 

@SugarDatesAndPistachios I hope they reverse their decision, good luck!

SugarDatesAndPistachios

Thanks @K_S it’s actually been referred pending more information so not refused yet, but I thought it was already with an underwriter, so maybe this is a more senior review. Ugh 😣

MrBounce

I have a few BTL apps submitted to remortgage some rental property with releasing some equity with Virgin Money. .. 

The apps were put in before the easter weekend, 2 of the valuations were done 2 weeks and a 3rd last weds... (All seperate apps).

The valuations are free, but do Virgin only instruct if they are happy with the app? Just concerned it's taking a while and don't want to have to keep disturbing the tenants to allow access if it doesn't go through with them..