Mortgage broker - ask me anything

K_S

Giggidy said:

Hello, we currently have a mortgage application with Natwest and they have twice requested via our broker for my latest trading accounts signed off by an accountant. I am self employed / sole trader, and I have submitted two years' SA100s, I thought trading accounts were only a requirement for limited companies? I keep my own accounts via Xero, and only use an accountant to file my VAT returns, so I am not sure what is required? 

@giggidy I'm assuming you're a sole trader. If you don't have an accountant (not uncommon at all for sole traders), Natwest is usually ok with reviewing recent 3 months personal and business bank statements to make sure income is in line with the levels in the last tax return. I'm assuming here that you haven't submitted your 2021-22 returns yet?

Does your broker not know that you don't have an accountant?

It's also important to keep in mind that with self-employed apps, underwriters have a wide latitude to probe and can exercise a lot of discretion.

I just want to point out that everything I've said above is based on the very limited info in front of me so might well be way off the mark. Your broker would be best placed to answer your questions in this matter.

Dribiddi

Could someone advise me if Barclays do detailed affordability checks for product transfers?
my fixed rate comes to an end in April 2023. I am worried I won’t be able to fix again if they apply tight affordability checks as I will be a full time student at the time. I have savings to keep me going but if I was to be stuck on a standard variable rate I think I would struggle to afford the extra ~£300 per month….

K_S

Dribiddi said:

Could someone advise me if Barclays do detailed affordability checks for product transfers?
my fixed rate comes to an end in April 2023. I am worried I won’t be able to fix again if they apply tight affordability checks as I will be a full time student at the time. I have savings to keep me going but if I was to be stuck on a standard variable rate I think I would struggle to afford the extra ~£300 per month….

@dribiddi Like all other mainstream lenders, as long as you don't need to borrow more or change term, a Barclays product-transfer involves no income checks, affordability assessment or underwriting.

Giggidy

K_S said:

Giggidy said:

Hello, we currently have a mortgage application with Natwest and they have twice requested via our broker for my latest trading accounts signed off by an accountant. I am self employed / sole trader, and I have submitted two years' SA100s, I thought trading accounts were only a requirement for limited companies? I keep my own accounts via Xero, and only use an accountant to file my VAT returns, so I am not sure what is required? 

@giggidy I'm assuming you're a sole trader. If you don't have an accountant (not uncommon at all for sole traders), Natwest is usually ok with reviewing recent 3 months personal and business bank statements to make sure income is in line with the levels in the last tax return. I'm assuming here that you haven't submitted your 2021-22 returns yet?

Does your broker not know that you don't have an accountant?

It's also important to keep in mind that with self-employed apps, underwriters have a wide latitude to probe and can exercise a lot of discretion.

I just want to point out that everything I've said above is based on the very limited info in front of me so might well be way off the mark. Your broker would be best placed to answer your questions in this matter.

Yes, a sole trader, and I haven't yet submitted my 21/22 tax return to HMRC. I already submitted business bank statements, and personal (though I keep my accounts separate). I was just confused why the broker and Natwest would request trading accounts. I have informed the brokers I don't use an accountant. I also see now the case manager has removed the request in the portal, changed the wording her request to 'accounts' in place of trading accounts, which to me indicates that they may have made an error requesting this in the first place? I am happy to provide info but just want to make sure we wont keep being asked for accounts I am not required as a sole trader to file.

kandfs_mam

We are in Scotland and received the Home Report with mortgage valuation and EPC before we put in an offer on a house. We had a MIP with HSBC and submitted the full application when we heard our offer was accepted on 1st June.  HSBC came back to us on 8th June looking for further information which we provided the same day, and I have had now received a telephone call this afternoon from SDL surveying acting for HSBC wanting confirmation of who did the Home Report on house we have offered on even though I provided all of that information in the application- does this sound right? Are we getting to the end of the process with mortgage application? I have read through pages of this forum but the system is very different in England. TIA

Edited to add - have asked for an 80% LTV mortgage with us having savings with HSBC which covers 20% deposit plus additional amount that we have offered over valuation price, plus stamp duty & fees.  No debt or finance, earning £70k between us both. Have paid off mortgage on current home which we will sell in next 2-3 months and pay lump sum off this mortgage 

K_S

kandfs_mam said:

We are in Scotland and received the Home Report with mortgage valuation and EPC before we put in an offer on a house. We had a MIP with HSBC and submitted the full application when we heard our offer was accepted on 1st June.  HSBC came back to us on 8th June looking for further information which we provided the same day, and I have had now received a telephone call this afternoon from SDL surveying acting for HSBC wanting confirmation of who did the Home Report on house we have offered on even though I provided all of that information in the application- does this sound right? Are we getting to the end of the process with mortgage application? I have read through pages of this forum but the system is very different in England. TIA

@kandfs_mam With HSBC and a Scottish mortgage -
- I'm asked to fill in the details from the Home Report as part of the application, particularly the date and name of surveyor/firm
- the system then decides whether they can do an automatic valuation or whether it needs a transcript (summary of the home report with the main data) from the Home Report surveyors via HSBC's surveyors

So in this case it looks like HSBC has instructed SDL (an independent third part firm) who are now looking to get a transcript of the home report for which they have contacted you to confirm details of who did the survey. They shouldn't have to do this but god only know what information HSBC did/didn't pass through to them when instructing the valuation. 

So to summarise I would say it looks like you are getting to the end of the valuation process!

kandfs_mam

@K_S thank you, I know logically that there is no reason the mortgage should be refused but the waiting game is getting to me 😅

kandfs_mam

Apologies to bother you again @K_S, we have had a text from HSBC stating mortgage has been approved subject to a satisfactory valuation.  Will the independent 3rd party firm that HSBC have appointed just review a transcript of the home survey that has been done or will they want to do a physical visit themselves? The reason I ask is  the sellers go on holiday tomorrow. TIA 

K_S

kandfs_mam said:

Apologies to bother you again @K_S, we have had a text from HSBC stating mortgage has been approved subject to a satisfactory valuation.  Will the independent 3rd party firm that HSBC have appointed just review a transcript of the home survey that has been done or will they want to do a physical visit themselves? The reason I ask is  the sellers go on holiday tomorrow. TIA 

@kandfs_mam I've never had a Scottish non new-build purchase valuation involve an internal inspection (the only scenario in which the vendor will need to be home).

But as only about 1 in 10 of the mortgages that I do are for Scottish properties, I can't really say with authority that it never happens!

masterplan33

Hi,

I'm looking to get a mortgage for around 120k with a 10% deposit and wondering if it would be possible given the following adverse history and being self employed.

CCJ in May 2019 - Satisfied.
1 default that comes off in 2024 - Satisfied.
No debt or credit cards etc.
Self employed sole trader - 28k profits declared on last tax return.

Would need to be with lender who uses Experian to credit check as things that reported on Eqiufax but not Experian.

Thanks