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Bakerman1989

K_S said:

Bakerman1989 said:

Any idea on turnaround times for Halifax at the moment?  Our case manager (large national broker) initially said 5 working days almost two weeks ago and has now went almost completely silent on us

@bakerman1989 Has the valuation happened?

Can't speak for your specific application but generally speaking, Halifax are as fast as they usually are - most applications the valuation is instructed immediately (though for physical valuations there can be a delay depending on surveyor availability, access, etc.), processing/underwriting team picking applications up and raising queries up in 1-2 working days, turning around any responses in the same timescales. I've done 2 this month and they've both flown through, though both were fairly straightforward 95% LTV FTB PAYE apps.

So if it's been two weeks with no news it's either that underwriting is complete and they're waiting for the val to be done, or they've raised a query which is sitting with your broker and hasn't been responded to, or it's already gone to offer and you just haven't been told.

Thank you, @K_S.  Finally got an update from the broker that Halifax will update us today or tomorrow.  I'm thinking it must be at valuation as you say as they haven't asked for any more information from us. 

daern

K_S said:

Nuri123 said:

Do natwest always request a home visit survey done on a remortgage 

@nuri123 Assuming that you're referring to a lender valuation, it can be desktop, drive-by or an internal inspection. That's true for all mainstream mortgage applications, not just NatWest.

I don't know what the process is for NatWest off of the top of my head, but if you need it to be an internal inspection (eg: because of recent significant improvements like a rear extension, loft conversion, etc. that wouldn't be captured on a desktop val) there should be a process for that as well.

I was incredibly surprised when HSBC (First Direct) insisted on a full, "the works" survey for a remortgage with around 20% LTV remaining. The chap spent two hours measuring the whole place up and asking hundreds of questions, but the whole thing seemed so incredibly redundant due to the very low risk the bank were taking on.

And, obviously, he finished with the obligatory final question:

"So, how much do you *need* it to be worth...?"

(And yes, the number I gave was indeed the one that ended up on the final form!)

Nuri123

At what stage do natwest do the valuation on a remortgage is it before underwriting or after 

Bakerman1989

Bakerman1989 said:

K_S said:

Bakerman1989 said:

Any idea on turnaround times for Halifax at the moment?  Our case manager (large national broker) initially said 5 working days almost two weeks ago and has now went almost completely silent on us

@bakerman1989 Has the valuation happened?

Can't speak for your specific application but generally speaking, Halifax are as fast as they usually are - most applications the valuation is instructed immediately (though for physical valuations there can be a delay depending on surveyor availability, access, etc.), processing/underwriting team picking applications up and raising queries up in 1-2 working days, turning around any responses in the same timescales. I've done 2 this month and they've both flown through, though both were fairly straightforward 95% LTV FTB PAYE apps.

So if it's been two weeks with no news it's either that underwriting is complete and they're waiting for the val to be done, or they've raised a query which is sitting with your broker and hasn't been responded to, or it's already gone to offer and you just haven't been told.

Thank you, @K_S.  Finally got an update from the broker that Halifax will update us today or tomorrow.  I'm thinking it must be at valuation as you say as they haven't asked for any more information from us. 

@K_S - turns out it's not valuation, but the fact that Halifax are looking to verify my wife's income. She is a contractor working for a council through an umbrella company.  Halifax have asked for 12 consecutive weeks payslips, but she has been off at least once every few months meaning that the most number of consecutive weeks we can provide is 10.  We're trying to get an employment contract for the umbrella company in lieu of the payslips.  My question - how common sense are Halifax likely to be here?  Is there a way for the broker to escalate it to someone once we provide all the information?  We're told there are no issues re. affordability and we can, if needed, provide 12 months worth of payslips and hopefully an employment contract.

K_S

Bakerman1989 said:

Bakerman1989 said:

K_S said:

Bakerman1989 said:

Any idea on turnaround times for Halifax at the moment?  Our case manager (large national broker) initially said 5 working days almost two weeks ago and has now went almost completely silent on us

@bakerman1989 Has the valuation happened?

Can't speak for your specific application but generally speaking, Halifax are as fast as they usually are - most applications the valuation is instructed immediately (though for physical valuations there can be a delay depending on surveyor availability, access, etc.), processing/underwriting team picking applications up and raising queries up in 1-2 working days, turning around any responses in the same timescales. I've done 2 this month and they've both flown through, though both were fairly straightforward 95% LTV FTB PAYE apps.

So if it's been two weeks with no news it's either that underwriting is complete and they're waiting for the val to be done, or they've raised a query which is sitting with your broker and hasn't been responded to, or it's already gone to offer and you just haven't been told.

Thank you, @K_S.  Finally got an update from the broker that Halifax will update us today or tomorrow.  I'm thinking it must be at valuation as you say as they haven't asked for any more information from us. 

@K_S - turns out it's not valuation, but the fact that Halifax are looking to verify my wife's income. She is a contractor working for a council through an umbrella company.  Halifax have asked for 12 consecutive weeks payslips, but she has been off at least once every few months meaning that the most number of consecutive weeks we can provide is 10.  We're trying to get an employment contract for the umbrella company in lieu of the payslips.  My question - how common sense are Halifax likely to be here?  Is there a way for the broker to escalate it to someone once we provide all the information?  We're told there are no issues re. affordability and we can, if needed, provide 12 months worth of payslips and hopefully an employment contract.

@bakerman1989 Halifax have a pretty clear cut way of calculating income for day-rate contractors paid through umbrella PAYE.

Off of the top of my head, it's the lower of income calculated as follows -

Contract income: day-rate X days/week X 46

Payslip income: gross pay on latest month's (or 4/5 weeks if weekly) payslip adjusted to 46 weeks. Can't remember if it's 4 or 5 weeks.

I wouldn't worry too much, assuming that your broker knew that your wife was a day-rate umbrella contractor and not a perm PAYE employee, they would have done the above calcs and made sure it all aligns to criteria before recommending Halifax.

Bakerman1989

K_S said:

Bakerman1989 said:

Bakerman1989 said:

K_S said:

Bakerman1989 said:

Any idea on turnaround times for Halifax at the moment?  Our case manager (large national broker) initially said 5 working days almost two weeks ago and has now went almost completely silent on us

@bakerman1989 Has the valuation happened?

Can't speak for your specific application but generally speaking, Halifax are as fast as they usually are - most applications the valuation is instructed immediately (though for physical valuations there can be a delay depending on surveyor availability, access, etc.), processing/underwriting team picking applications up and raising queries up in 1-2 working days, turning around any responses in the same timescales. I've done 2 this month and they've both flown through, though both were fairly straightforward 95% LTV FTB PAYE apps.

So if it's been two weeks with no news it's either that underwriting is complete and they're waiting for the val to be done, or they've raised a query which is sitting with your broker and hasn't been responded to, or it's already gone to offer and you just haven't been told.

Thank you, @K_S.  Finally got an update from the broker that Halifax will update us today or tomorrow.  I'm thinking it must be at valuation as you say as they haven't asked for any more information from us. 

@K_S - turns out it's not valuation, but the fact that Halifax are looking to verify my wife's income. She is a contractor working for a council through an umbrella company.  Halifax have asked for 12 consecutive weeks payslips, but she has been off at least once every few months meaning that the most number of consecutive weeks we can provide is 10.  We're trying to get an employment contract for the umbrella company in lieu of the payslips.  My question - how common sense are Halifax likely to be here?  Is there a way for the broker to escalate it to someone once we provide all the information?  We're told there are no issues re. affordability and we can, if needed, provide 12 months worth of payslips and hopefully an employment contract.

@bakerman1989 Halifax have a pretty clear cut way of calculating income for day-rate contractors paid through umbrella PAYE.

Off of the top of my head, it's the lower of income calculated as follows -

Contract income: day-rate X days/week X 46

Payslip income: gross pay on latest month's (or 4/5 weeks if weekly) payslip adjusted to 46 weeks. Can't remember if it's 4 or 5 weeks.

I wouldn't worry too much, assuming that your broker knew that your wife was a day-rate umbrella contractor and not a perm PAYE employee, they would have done the above calcs and made sure it all aligns to criteria before recommending Halifax.

Thanks again @K_S - it's not so much the affordability we're worried about; it's the inflexibility of the underwriter by insisting on 12 weeks consecutive payslips.  If I speak direct to my broker (instead of the case manager) can he jump on a call with the underwriter to explain, and how receptive are underwriters generally to common sense?  If checklist criteria is 12 consecutive weeks payslips as evidence, do they have any discretion?

K_S

Bakerman1989 said:

K_S said:

Bakerman1989 said:

Bakerman1989 said:

K_S said:

Bakerman1989 said:

Any idea on turnaround times for Halifax at the moment?  Our case manager (large national broker) initially said 5 working days almost two weeks ago and has now went almost completely silent on us

@bakerman1989 Has the valuation happened?

Can't speak for your specific application but generally speaking, Halifax are as fast as they usually are - most applications the valuation is instructed immediately (though for physical valuations there can be a delay depending on surveyor availability, access, etc.), processing/underwriting team picking applications up and raising queries up in 1-2 working days, turning around any responses in the same timescales. I've done 2 this month and they've both flown through, though both were fairly straightforward 95% LTV FTB PAYE apps.

So if it's been two weeks with no news it's either that underwriting is complete and they're waiting for the val to be done, or they've raised a query which is sitting with your broker and hasn't been responded to, or it's already gone to offer and you just haven't been told.

Thank you, @K_S.  Finally got an update from the broker that Halifax will update us today or tomorrow.  I'm thinking it must be at valuation as you say as they haven't asked for any more information from us. 

@K_S - turns out it's not valuation, but the fact that Halifax are looking to verify my wife's income. She is a contractor working for a council through an umbrella company.  Halifax have asked for 12 consecutive weeks payslips, but she has been off at least once every few months meaning that the most number of consecutive weeks we can provide is 10.  We're trying to get an employment contract for the umbrella company in lieu of the payslips.  My question - how common sense are Halifax likely to be here?  Is there a way for the broker to escalate it to someone once we provide all the information?  We're told there are no issues re. affordability and we can, if needed, provide 12 months worth of payslips and hopefully an employment contract.

@bakerman1989 Halifax have a pretty clear cut way of calculating income for day-rate contractors paid through umbrella PAYE.

Off of the top of my head, it's the lower of income calculated as follows -

Contract income: day-rate X days/week X 46

Payslip income: gross pay on latest month's (or 4/5 weeks if weekly) payslip adjusted to 46 weeks. Can't remember if it's 4 or 5 weeks.

I wouldn't worry too much, assuming that your broker knew that your wife was a day-rate umbrella contractor and not a perm PAYE employee, they would have done the above calcs and made sure it all aligns to criteria before recommending Halifax.

Thanks again @K_S - it's not so much the affordability we're worried about; it's the inflexibility of the underwriter by insisting on 12 weeks consecutive payslips.  If I speak direct to my broker (instead of the case manager) can he jump on a call with the underwriter to explain, and how receptive are underwriters generally to common sense?  If checklist criteria is 12 consecutive weeks payslips as evidence, do they have any discretion?

@bakerman1989 I think there's some misunderstanding here, perhaps caused by the case manager wrongly interpreting the underwriter query and/or not understanding how contractor income works. Also, I'm assuming here that your wife's income has been keyed in as a contractor and not as a perm PAYE employee.

Underwriters know that day-rate contractors take time off and that there may be no payslip issued for weeks that they don't submit a timesheet, hence the assumption of 6 weeks without income a year.

So if they've asked for the latest 12 weeks payslips and all you can provide is payslips for 10/12 weeks, then that should be absolutely fine, they may just adjust the affordability accordingly if warranted. And if affordability isn't an issue in this case then there shouldn't be anything to worry about.

I can't speak for the outcome of your particular case as I know nothing about it, but I've done plenty of contractor cases who've had gaps (both between contracts and within contracts, say over Christmas or summer) and other than the impact on affordability, I've never had a lender decline a case for a reason like in your case, where it meets criteria.

Bakerman1989

K_S said:

Bakerman1989 said:

K_S said:

Bakerman1989 said:

Bakerman1989 said:

K_S said:

Bakerman1989 said:

Any idea on turnaround times for Halifax at the moment?  Our case manager (large national broker) initially said 5 working days almost two weeks ago and has now went almost completely silent on us

@bakerman1989 Has the valuation happened?

Can't speak for your specific application but generally speaking, Halifax are as fast as they usually are - most applications the valuation is instructed immediately (though for physical valuations there can be a delay depending on surveyor availability, access, etc.), processing/underwriting team picking applications up and raising queries up in 1-2 working days, turning around any responses in the same timescales. I've done 2 this month and they've both flown through, though both were fairly straightforward 95% LTV FTB PAYE apps.

So if it's been two weeks with no news it's either that underwriting is complete and they're waiting for the val to be done, or they've raised a query which is sitting with your broker and hasn't been responded to, or it's already gone to offer and you just haven't been told.

Thank you, @K_S.  Finally got an update from the broker that Halifax will update us today or tomorrow.  I'm thinking it must be at valuation as you say as they haven't asked for any more information from us. 

@K_S - turns out it's not valuation, but the fact that Halifax are looking to verify my wife's income. She is a contractor working for a council through an umbrella company.  Halifax have asked for 12 consecutive weeks payslips, but she has been off at least once every few months meaning that the most number of consecutive weeks we can provide is 10.  We're trying to get an employment contract for the umbrella company in lieu of the payslips.  My question - how common sense are Halifax likely to be here?  Is there a way for the broker to escalate it to someone once we provide all the information?  We're told there are no issues re. affordability and we can, if needed, provide 12 months worth of payslips and hopefully an employment contract.

@bakerman1989 Halifax have a pretty clear cut way of calculating income for day-rate contractors paid through umbrella PAYE.

Off of the top of my head, it's the lower of income calculated as follows -

Contract income: day-rate X days/week X 46

Payslip income: gross pay on latest month's (or 4/5 weeks if weekly) payslip adjusted to 46 weeks. Can't remember if it's 4 or 5 weeks.

I wouldn't worry too much, assuming that your broker knew that your wife was a day-rate umbrella contractor and not a perm PAYE employee, they would have done the above calcs and made sure it all aligns to criteria before recommending Halifax.

Thanks again @K_S - it's not so much the affordability we're worried about; it's the inflexibility of the underwriter by insisting on 12 weeks consecutive payslips.  If I speak direct to my broker (instead of the case manager) can he jump on a call with the underwriter to explain, and how receptive are underwriters generally to common sense?  If checklist criteria is 12 consecutive weeks payslips as evidence, do they have any discretion?

@bakerman1989 I think there's some misunderstanding here, perhaps caused by the case manager wrongly interpreting the underwriter query and/or not understanding how contractor income works. Also, I'm assuming here that your wife's income has been keyed in as a contractor and not as a perm PAYE employee.

Underwriters know that day-rate contractors take time off and that there may be no payslip issued for weeks that they don't submit a timesheet, hence the assumption of 6 weeks without income a year.

So if they've asked for the latest 12 weeks payslips and all you can provide is payslips for 10/12 weeks, then that should be absolutely fine, they may just adjust the affordability accordingly if warranted. And if affordability isn't an issue in this case then there shouldn't be anything to worry about.

I can't speak for the outcome of your particular case as I know nothing about it, but I've done plenty of contractor cases who've had gaps (both between contracts and within contracts, say over Christmas or summer) and other than the impact on affordability, I've never had a lender decline a case for a reason like in your case, where it meets criteria.

@K_S I'm getting the feeling that the case manager may have misinterpreted the underwriter's query as we were clear with the broker that my wife is a contractor from the start. The initial information request was for x5 consecutive weeks of payslips, which we couldn't provide due to wife being off over xmas. We were then asked to provide a letter from wife's employer confirming reason for the missing payslip along with 12 weeks of payslips, which we did.  Somewhere along the process the information request has turned into x12 consecutive weeks of payslips, which we can't provide due to wife being off at least once in every 12 weeks (although still worked 46 weeks in the year). We have now uploaded 7 months' of payslips, a letter from employer confirming no work = no payslip and the employment contract.  It just seems to me this could all have been sorted out with a phone call.

K_S

Bakerman1989 said:

K_S said:

Bakerman1989 said:

K_S said:

Bakerman1989 said:

Bakerman1989 said:

K_S said:

Bakerman1989 said:

Any idea on turnaround times for Halifax at the moment?  Our case manager (large national broker) initially said 5 working days almost two weeks ago and has now went almost completely silent on us

@bakerman1989 Has the valuation happened?

Can't speak for your specific application but generally speaking, Halifax are as fast as they usually are - most applications the valuation is instructed immediately (though for physical valuations there can be a delay depending on surveyor availability, access, etc.), processing/underwriting team picking applications up and raising queries up in 1-2 working days, turning around any responses in the same timescales. I've done 2 this month and they've both flown through, though both were fairly straightforward 95% LTV FTB PAYE apps.

So if it's been two weeks with no news it's either that underwriting is complete and they're waiting for the val to be done, or they've raised a query which is sitting with your broker and hasn't been responded to, or it's already gone to offer and you just haven't been told.

Thank you, @K_S.  Finally got an update from the broker that Halifax will update us today or tomorrow.  I'm thinking it must be at valuation as you say as they haven't asked for any more information from us. 

@K_S - turns out it's not valuation, but the fact that Halifax are looking to verify my wife's income. She is a contractor working for a council through an umbrella company.  Halifax have asked for 12 consecutive weeks payslips, but she has been off at least once every few months meaning that the most number of consecutive weeks we can provide is 10.  We're trying to get an employment contract for the umbrella company in lieu of the payslips.  My question - how common sense are Halifax likely to be here?  Is there a way for the broker to escalate it to someone once we provide all the information?  We're told there are no issues re. affordability and we can, if needed, provide 12 months worth of payslips and hopefully an employment contract.

@bakerman1989 Halifax have a pretty clear cut way of calculating income for day-rate contractors paid through umbrella PAYE.

Off of the top of my head, it's the lower of income calculated as follows -

Contract income: day-rate X days/week X 46

Payslip income: gross pay on latest month's (or 4/5 weeks if weekly) payslip adjusted to 46 weeks. Can't remember if it's 4 or 5 weeks.

I wouldn't worry too much, assuming that your broker knew that your wife was a day-rate umbrella contractor and not a perm PAYE employee, they would have done the above calcs and made sure it all aligns to criteria before recommending Halifax.

Thanks again @K_S - it's not so much the affordability we're worried about; it's the inflexibility of the underwriter by insisting on 12 weeks consecutive payslips.  If I speak direct to my broker (instead of the case manager) can he jump on a call with the underwriter to explain, and how receptive are underwriters generally to common sense?  If checklist criteria is 12 consecutive weeks payslips as evidence, do they have any discretion?

@bakerman1989 I think there's some misunderstanding here, perhaps caused by the case manager wrongly interpreting the underwriter query and/or not understanding how contractor income works. Also, I'm assuming here that your wife's income has been keyed in as a contractor and not as a perm PAYE employee.

Underwriters know that day-rate contractors take time off and that there may be no payslip issued for weeks that they don't submit a timesheet, hence the assumption of 6 weeks without income a year.

So if they've asked for the latest 12 weeks payslips and all you can provide is payslips for 10/12 weeks, then that should be absolutely fine, they may just adjust the affordability accordingly if warranted. And if affordability isn't an issue in this case then there shouldn't be anything to worry about.

I can't speak for the outcome of your particular case as I know nothing about it, but I've done plenty of contractor cases who've had gaps (both between contracts and within contracts, say over Christmas or summer) and other than the impact on affordability, I've never had a lender decline a case for a reason like in your case, where it meets criteria.

@K_S I'm getting the feeling that the case manager may have misinterpreted the underwriter's query as we were clear with the broker that my wife is a contractor from the start. The initial information request was for x5 consecutive weeks of payslips, which we couldn't provide due to wife being off over xmas. We were then asked to provide a letter from wife's employer confirming reason for the missing payslip along with 12 weeks of payslips, which we did.  Somewhere along the process the information request has turned into x12 consecutive weeks of payslips, which we can't provide due to wife being off at least once in every 12 weeks (although still worked 46 weeks in the year). We have now uploaded 7 months' of payslips, a letter from employer confirming no work = no payslip and the employment contract.  It just seems to me this could all have been sorted out with a phone call.

@bakerman1989 I'm probably missing something obvious here as a lot of the above doesn't appear to correspond to how a contractor income would be underwritten or packaged. 

I'm curious as to what has happened here out of professional interest, so please do close the loop when you get to the bottom of this. Good luck!

deejaybee

Hi K_S

General question - Im 63 in November, long term self-employed - would i be able to source a mortgage in the 50 to 70 K range, running to age 70 , obviously assuming my incomings are sufficient. Will have around 130K deposit , but that wouldnt get me the type of property i'm considering, hence the mortgage query. Profit before tax around 33K p.a, plus 2.5K pension p.a.

I would look to clear it a fair way before age 70,  pension lump sums due at 65.

Thank you.