Mortgage broker - ask me anything

First_Time_Buyer000

@kingstreet thank you for clarifying. Much appreciated. 

K_S

First_Time_Buyer000 said:

My house purchase fell through due to the conveyancing searches returning an issue. I had also received a formal offer from Nationwide that is valid for 6 months for the property. We are now on the search for a different property. Is it possible to port the existing interest rate for a different property? Not sure if Nationwide usually allows this. Thanks. 

@first_time_buyer000 Unfortunately, with Nationwide, as Kingstreet said the mortgage offer is specific to a property so if the purchase falls through, the mortgage offer can't be used. 

If and when you find a new property, and you want to stay with Nationwide, you will have to select a new rate available at that point in time.

Every lender has a different policy. For example, HSBC will allow you to change the property on the offer and give you a fresh full 6 months until expiry.

First_Time_Buyer000

@K_S thank you very much for explaining. That is really good to know. Would you be able to share which other lenders offer similar flexibility with their mortgage offers? Thanks in advance. 

sherbert1964

hi @K_S, applying for a mortgage with TML right now, gone back and forth with the UW requesting various documents and explanations and all a but worried!

We are quite a complex application with my being newly self employed (LTD co director) and a small loss in Y1 but healthy profit in Y2 and having to take most recent year in Isolation for my income.  The majority of Q's the UW has come back haven't been affordability related (although they did request my accounts be signed by my accountant as they weren't) but mainly Q's such as ID docs, additional bank statements and explanations about electoral roll and why business had the Y1 loss.

Just super nervous and wondered what your experience with TML is, if the to-ing and fro-ing of additional Q's is a good sign or tell me to shut up and just be patient!

Thank you

K_S

Nicki_Sue said:

Hi @K_S (and others). 

I have a self-employed/self-assessment documentation question someone might have the answer to. 

We're in our 40's, FTB on a new build. We have our MIP from Leeds BS, the valuation has come back ok and everything has been submitted to the lender to lock in a rate despite me struggling to get a document from HMRC.

My 22/23 self-assessment was submitted 2/5 but wasn't "captured" properly on their system. It's taken nearly a month but it's now been manually processed and I have my calculation and tax year overview....

BUT (there's always a but).

The overview showed I owed some tax, to be paid by Jan '24. The mortgage broker said the underwriter wouldn't accept that and I had to pay the tax owing now. 
I've done that BUT HMRC are saying they won't update the 22/23 tax year overview to show my balancing payment is paid and up to date and me owing zero until 28 days before the Jan '24 deadline. 

I've asked for a statement to be sent which they've said they will but the mortgage broker has said only the updated tax year overview will do for the lender.

Has anyone else encountered this and knows any way around it? 
I have the HMRC receipt email and download showing the tax payment was paid but apparently, that's inadequate.

Any advice would be much appreciated. It's sat with the lender now and the timing is getting a bit sticky.

@nicki_sue It's a tricky one unfortunately as the eventual outcome depends on the subjective opinion of the underwriter. 

I can't speak for your specific issue as I don't know anything about it but I'll give an example of a similar issue with the TYO (where the tax due figures don't match exactly with the SA302) and hopefully you can get something useful out of it.

The SA302 not matching TYO due to adjustments/overpayments/etc. is a much more common issue than lenders acknowledge and can arise due to a number of valid reasons. Where the underwriter (or processor) is simply refusing to accept any diff between the TYO and SA302, where I've had successes, it's from the client calling HMRC, explaining that they've having severe issues with a mortgage due to the discrepancy and getting a manual letter explaining the discrepancy, reconciling the numbers and then me packaging this evidence to the underwriter, pushing the BDM, trying to get it assigned to a senior underwriter, etc. to try and get a favourable outcome.

More often that not, it has worked but it may require a good bit of effort from yourself (getting someone to speak to at HMRC has got increasingly difficult over the recent past with all the cuts to staff numbers and customer lines), a big dollop of luck (you need them to be willing to draft a letter), time and effort from the broker and even after all that you could get an underwriter who simply isn't willing to budge.

Out of professional interest, if and when this reaches an end conclusion, It would be good if you could circle back and update us as to what happened.

I hope it gets sorted one way or the other, good luck!

K_S

sherbert1964 said:

hi @K_S, applying for a mortgage with TML right now, gone back and forth with the UW requesting various documents and explanations and all a but worried!

We are quite a complex application with my being newly self employed (LTD co director) and a small loss in Y1 but healthy profit in Y2 and having to take most recent year in Isolation for my income.  The majority of Q's the UW has come back haven't been affordability related (although they did request my accounts be signed by my accountant as they weren't) but mainly Q's such as ID docs, additional bank statements and explanations about electoral roll and why business had the Y1 loss.

Just super nervous and wondered what your experience with TML is, if the to-ing and fro-ing of additional Q's is a good sign or tell me to shut up and just be patient!

Thank you

@sherbet1964 I'm a one person band so don't do a large enough volume of TML applications to give you a useful opinion. And in any case 2 specialist apps can be very different to each other so it's hard to generalise compared to (say) a NatWest or Halifax app. 

Having said that, generally speaking as long as an underwriter is raising queries and they all have a reasonable explanation that you can give, it's all good. As you can appreciate, there is a large amount of subjectivity when it comes to a complex scenario like yours so fingers crossed it all goes well!

cleverlycautious

I want to port my mortgage (with the same lender Santander) but pay the difference in the house price in cash, so no additional lending required.

The complication is that i have recently changed jobs from PAYE to freelancing and through my LTD Company.

Will i have to provide payslips etc and will this automatically mean i will be unable to get the new mortgage?

K_S

@cleverlycautious Can't speak for your case or Santander specifically, but with like-for-like porting lenders can usually show quite a bit of discretion when it comes to affordability and criteria. So hopefully you'll have a way to get it through.

If it comes to full underwriting and need to pass affordability+criteria then it's very unlikely that a new ltd co would pass muster with Santander unless it's linked to the previous PAYE role (eg: day-rate contractor previously PAYE/umbrella and now contracting through their own PSC limited co.).

cleverlycautious said:

I want to port my mortgage (with the same lender Santander) but pay the difference in the house price in cash, so no additional lending required.

The complication is that i have recently changed jobs from PAYE to freelancing and through my LTD Company.

Will i have to provide payslips etc and will this automatically mean i will be unable to get the new mortgage?

Nicki_Sue

K_S said:

Nicki_Sue said:

Hi @K_S (and others). 

I have a self-employed/self-assessment documentation question someone might have the answer to. 

We're in our 40's, FTB on a new build. We have our MIP from Leeds BS, the valuation has come back ok and everything has been submitted to the lender to lock in a rate despite me struggling to get a document from HMRC.

My 22/23 self-assessment was submitted 2/5 but wasn't "captured" properly on their system. It's taken nearly a month but it's now been manually processed and I have my calculation and tax year overview....

BUT (there's always a but).

The overview showed I owed some tax, to be paid by Jan '24. The mortgage broker said the underwriter wouldn't accept that and I had to pay the tax owing now. 
I've done that BUT HMRC are saying they won't update the 22/23 tax year overview to show my balancing payment is paid and up to date and me owing zero until 28 days before the Jan '24 deadline. 

I've asked for a statement to be sent which they've said they will but the mortgage broker has said only the updated tax year overview will do for the lender.

Has anyone else encountered this and knows any way around it? 
I have the HMRC receipt email and download showing the tax payment was paid but apparently, that's inadequate.

Any advice would be much appreciated. It's sat with the lender now and the timing is getting a bit sticky.

@nicki_sue It's a tricky one unfortunately as the eventual outcome depends on the subjective opinion of the underwriter. 

I can't speak for your specific issue as I don't know anything about it but I'll give an example of a similar issue with the TYO (where the tax due figures don't match exactly with the SA302) and hopefully you can get something useful out of it.

The SA302 not matching TYO due to adjustments/overpayments/etc. is a much more common issue than lenders acknowledge and can arise due to a number of valid reasons. Where the underwriter (or processor) is simply refusing to accept any diff between the TYO and SA302, where I've had successes, it's from the client calling HMRC, explaining that they've having severe issues with a mortgage due to the discrepancy and getting a manual letter explaining the discrepancy, reconciling the numbers and then me packaging this evidence to the underwriter, pushing the BDM, trying to get it assigned to a senior underwriter, etc. to try and get a favourable outcome.

More often that not, it has worked but it may require a good bit of effort from yourself (getting someone to speak to at HMRC has got increasingly difficult over the recent past with all the cuts to staff numbers and customer lines), a big dollop of luck (you need them to be willing to draft a letter), time and effort from the broker and even after all that you could get an underwriter who simply isn't willing to budge.

Out of professional interest, if and when this reaches an end conclusion, It would be good if you could circle back and update us as to what happened.

I hope it gets sorted one way or the other, good luck!

Thanks @k_s - It's a nightmare with HMRC at the moment. Many, *many* hours of calls and more with them over the past month. Fun times. Different info every time but occasionally you get someone who has been doing the job a while and who can be creative which is how I managed to get the manual processing from 12wks to 4wks. 

Since posting my accountant has given me a letter explaining that I have paid, my current position, that it can be evidenced but the TYO won't be updated by HMRC yet as it is classed as an early payment or overpayment. We included the updated SA302, the TYO as is and my proof of payment from Gov.uk.

The broker called back and said that she's been able to submit the application with this and now it's a wait and see job to see what Leeds BC/the UW come back with, hopefully in no more than a week. If it's a no-go I'll get back in touch with HMRC and see if I can arrange something like your situation above.

Thanks for replying, much appreciated. 

Politebunny37

I was hoping you could help me. Submitted a HSBC mortgage application and the automatic amount pulled out I could borrow was £265,500 - I was wanting to borrow £263,500 on the application. It then gets rejected due to affordability (the HSBC advisor has no idea why as I’m borrowing below the amount they could lend). The HSBC advisor then forwarded it on the underwriting for manual underwriting - the HSBC advisor said I had perfect credit history and it’s only flagging on affordability and that’s the only issue, I’m a sole applicant and putting just over 15% down so its 84.8% loan value. Any any advice or experience would be appreciated.