Mortgage broker - ask me anything

K_S

22225 said:

Dear KS
Sorry I thought I wouldn't bother you again but here we go... we applied to Nationwide mid May and are still waiting. They have asked for lots of documentation about my inheritance funds. We went through a broker and told them from the start that we were not selling our current house and buying the new house simultaneously. So for the last 2 weeks we have been living at my in laws which is a different address to the one on our initial application. when I told the brokers that we had finally moved out, I asked them to confirm that it wouldn'be a problem for nationwid. they started getting worried and told me not to change my bank statements address or anything and that it would be best not to tell nationwide in case they made us do a brand new application!!!! So I haven't changed any of my details, I've just got the mail redirected. But my husband had already told his current account bank our in laws address. I told the brokers and they just said just to leave everything as it is. I'm so worried. If we have to reapply we  will have to have a higher interest rate and then we wont be able to afford the house.... what should we do??? the brokers ate v uncommunoactive. Please help. 

@22225 Sorry I don't recall the previous context but I can't really give any useful comments based on the limited info in your post. You'll need to lean on your broker for advice. 

Perhaps if you post on the main forum someone may be able to comment. Good luck!

GreenCat80

Are there any lenders at the moment where I could get a mortgage super quickly? 

I’ve been waiting with NationWide for 6 or 7 weeks now, my ex is getting harder to live with by the day and putting lots of pressure on me to buy him out, and NW have just come back and asked for more documents, one being that my tax overview and SA302 have a difference of about £150 (I have no idea why, I submit my tax return, the gateway tells me what I have to pay, I pay it 🤷🏻‍♀️) and I don’t know how to fix that so I think I need to apply elsewhere. My broker is about as useful as a chocolate teapot and I just want to walk away from the whole thing 😭

K_S

GreenCat80 said:

Are there any lenders at the moment where I could get a mortgage super quickly? 

I’ve been waiting with NationWide for 6 or 7 weeks now, my ex is getting harder to live with by the day and putting lots of pressure on me to buy him out, and NW have just come back and asked for more documents, one being that my tax overview and SA302 have a difference of about £150 (I have no idea why, I submit my tax return, the gateway tells me what I have to pay, I pay it 🤷🏻‍♀️) and I don’t know how to fix that so I think I need to apply elsewhere. My broker is about as useful as a chocolate teapot and I just want to walk away from the whole thing 😭

@GreenCat80 Halifax is the quickest (by far!) at the moment BUT they may ask the same question re the numbers not matching on the SA302 vs TYO.

There are a few known explanations for differences between the TYO and SA302 but some lenders are a bit harder to break down on this matter than others. If it's a difference of £150 it's quite likely to do with NICs.

It might be worth calling HMRC and asking why they differ as well. On occasion you can get someone who has had this question before and can give a clear answer.

Do you have an accountant at all? If you do then you can use accounts or a reference to get away without the TYO.

SeagullFTB

GreenCat80 said:

Are there any lenders at the moment where I could get a mortgage super quickly? 

I’ve been waiting with NationWide for 6 or 7 weeks now, my ex is getting harder to live with by the day and putting lots of pressure on me to buy him out, and NW have just come back and asked for more documents, one being that my tax overview and SA302 have a difference of about £150 (I have no idea why, I submit my tax return, the gateway tells me what I have to pay, I pay it 🤷🏻‍♀️) and I don’t know how to fix that so I think I need to apply elsewhere. My broker is about as useful as a chocolate teapot and I just want to walk away from the whole thing 😭

If it's a difference of just over £150, it's probably to do with Class 2 National Insurance if your self employed. HMRC have had a bad habit of removing it post tax return recently, which means the tax return shows £XXX to pay, but you actually pay £150ish less because that's all they ask for. If you obtain a new SA302, this SHOULD be reflected in it, but HMRC are somewhat useless.

GreenCat80

K_S said:

GreenCat80 said:

Are there any lenders at the moment where I could get a mortgage super quickly? 

I’ve been waiting with NationWide for 6 or 7 weeks now, my ex is getting harder to live with by the day and putting lots of pressure on me to buy him out, and NW have just come back and asked for more documents, one being that my tax overview and SA302 have a difference of about £150 (I have no idea why, I submit my tax return, the gateway tells me what I have to pay, I pay it 🤷🏻‍♀️) and I don’t know how to fix that so I think I need to apply elsewhere. My broker is about as useful as a chocolate teapot and I just want to walk away from the whole thing 😭

@GreenCat80 Halifax is the quickest (by far!) at the moment BUT they may ask the same question re the numbers not matching on the SA302 vs TYO.

There are a few known explanations for differences between the TYO and SA302 but some lenders are a bit harder to break down on this matter than others. If it's a difference of £150 it's quite likely to do with NICs.

It might be worth calling HMRC and asking why they differ as well. On occasion you can get someone who has had this question before and can give a clear answer.

Do you have an accountant at all? If you do then you can use accounts or a reference to get away without the TYO.

Thank you so much for replying. We have an accountant for the business (but not from 2019)  but it’s a ltd company, I just applied for the mortgage without any business stuff, just my salary from the business. 

I had another look at this return and I submitted it in the July, they adjusted it in September, I didn’t pay class 2 NI, it was class 4. I’m so lost with this stuff 😫

K_S

GreenCat80 said:

K_S said:

GreenCat80 said:

Are there any lenders at the moment where I could get a mortgage super quickly? 

I’ve been waiting with NationWide for 6 or 7 weeks now, my ex is getting harder to live with by the day and putting lots of pressure on me to buy him out, and NW have just come back and asked for more documents, one being that my tax overview and SA302 have a difference of about £150 (I have no idea why, I submit my tax return, the gateway tells me what I have to pay, I pay it 🤷🏻‍♀️) and I don’t know how to fix that so I think I need to apply elsewhere. My broker is about as useful as a chocolate teapot and I just want to walk away from the whole thing 😭

@GreenCat80 Halifax is the quickest (by far!) at the moment BUT they may ask the same question re the numbers not matching on the SA302 vs TYO.

There are a few known explanations for differences between the TYO and SA302 but some lenders are a bit harder to break down on this matter than others. If it's a difference of £150 it's quite likely to do with NICs.

It might be worth calling HMRC and asking why they differ as well. On occasion you can get someone who has had this question before and can give a clear answer.

Do you have an accountant at all? If you do then you can use accounts or a reference to get away without the TYO.

Thank you so much for replying. We have an accountant for the business (but not from 2019)  but it’s a ltd company, I just applied for the mortgage without any business stuff, just my salary from the business. 

I had another look at this return and I submitted it in the July, they adjusted it in September, I didn’t pay class 2 NI, it was class 4. I’m so lost with this stuff 😫

@greencat80 Whether you're using just the salary or sal+divs, as long as you are a 20-25%+ shareholder, you'll be treated as self-employed by most lenders unfortunately.

Having an accountant who can write a clarification can be a huge help for ltd.co.cases. Usually anything they write is riddled with caveats but lenders seem to be ok as long as it's signed by a qualified accountant.

If the difference is exactly matching with the explanation above, then try giving this explanation to Nationwide. Ideally, where the TYO and SA302 figures don't match, the broker should have spotted this before putting the application in, brought it up with you and uploaded a note explaining the difference when submitting the full application.

Nationwide are an absolute shambles at the moment with no sign at all that things are getting better, so if your vendor is getting antsy, it may be worth putting in a second application with an appropriate lender. Do make sure that your broker (or you if direct) runs the TYO issue past the lender before putting an application in.

4thLaw

Hi, I have had a counter offer from HSBC because of affordability. Seems a bit silly since the counter offer was a reduction of less than £100 from original amount nearly £360k.

My question is, is this processed as part of my original application or will they be processing this as a new application? I wouldn't want to lose out on the original rates that I applied for as they have since increased rates by quite a bit!

K_S

4thLaw said:

Hi, I have had a counter offer from HSBC because of affordability. Seems a bit silly since the counter offer was a reduction of less than £100 from original amount nearly £360k.

My question is, is this processed as part of my original application or will they be processing this as a new application? I wouldn't want to lose out on the original rates that I applied for as they have since increased rates by quite a bit!

@4thlaw Based on the limited info in your post - this is just part of processing the original application, so no change in product/rate.

4thLaw

K_S said:

4thLaw said:

Hi, I have had a counter offer from HSBC because of affordability. Seems a bit silly since the counter offer was a reduction of less than £100 from original amount nearly £360k.

My question is, is this processed as part of my original application or will they be processing this as a new application? I wouldn't want to lose out on the original rates that I applied for as they have since increased rates by quite a bit!

@4thlaw Based on the limited info in your post - this is just part of processing the original application, so no change in product/rate.

Thank you for responding. Do you have any idea how quickly HSBC are recently processing these type of scenarios where they have made a counter offer? 

K_S

4thLaw said:

K_S said:

4thLaw said:

Hi, I have had a counter offer from HSBC because of affordability. Seems a bit silly since the counter offer was a reduction of less than £100 from original amount nearly £360k.

My question is, is this processed as part of my original application or will they be processing this as a new application? I wouldn't want to lose out on the original rates that I applied for as they have since increased rates by quite a bit!

@4thlaw Based on the limited info in your post - this is just part of processing the original application, so no change in product/rate.

Thank you for responding. Do you have any idea how quickly HSBC are recently processing these type of scenarios where they have made a counter offer? 

@4thlaw Just for the benefit of other readers who may come across this Q-A and may get confused by the term, I wouldn't call this as a 'counter-offer', it's simply a normal part of underwriting where they've adjusted affordability and revised potential maximum borrowing downwards based on the review of supporting documentation and/or other factors.

To answer your question - If you go back to HSBC and confirm that you are happy with the revised loan amount, it should take them about 2-3 working days to pick up your response and continue processing the application.

I hope your offer comes through soon, good luck!