Mortgage Declined. Help

lg793

haras_n0sirrah said:

niknaks0285 said:

lg793 said:

Hello all.
My mortgage with Santander got declined today.
After a month of back and forth questions, and sending documents, the application got declined at the under-writing stage.
The reason was that they had no proof that I've been in employment for the past 2 years.
The reason behind this, is that I was on an apprenticeship and got paid by BACS, and not through PAYE (I was way below tax threshold so no tax fraud going on, don't worry).
I've been on my 'full-time' wage for 3 months now, and I have proved clearly my new wage which they were satisfied with.
My mortgage advisor says I have no hope of appealing their decision as there is no evidence that I have been employed before my full-time wage, apart from my bank statements.
Has anyone had simar issues? What can I do??
We've already paid the deposit on the house, solicitor fees and mortgage broker fees as they were 100% sure that our application would sail by

There is a thread on here mortgage broker ask me anything. If you ask on that thread you may get a better and more professional answer. Just a question though, can the company you worked for as an apprentice not provide proof of employment? Will the lender allow this?  

That is my thread.
Santander are unlikely to overturn if they have a bee in their bonnet. As a lender they take day 1 employment so being 3 months in a job wouldn't have been a problem for them. The bigger issue is they have decided op has lied on his application. If I was his broker I would a) try to prove to Santander that no lies have been told to prevent a cifas marker and b) try another lender with 3 months employment history if that is what the ytd accumulation on his payslip shows as that is what has been shown to be provable 

First of all, thank you to everyone who has left helpful feedback. I would have replied sooner but I have had a lot to handle IRL.
Thanks especially to haras_n0sirrah, you seem really genuine and I appreciate that.
To those backing up Thrugelmir, try being in my situation for a minute. A 19 year old, trying to buy their first house, getting the mortgage declined after paying out so much already, then having someone on the internet tell you its basically your fault and theres no way to rectify it? Please. Is there really any need for it?
On another note, I have obtained a copy of my Employment Contract which I signed at the start of my apprenticeship. I really hope this works. My mortgage advisor/broker is sending this to Santander on Monday, so will hopefully have some information by the end of the week.
Again, thanks to everyone who left constructive replies

lookstraightahead

Irrespective of anything, it is really good advice to know that payslips are needed and a legal requirement. Remember this going forward and make sure that you keep them somewhere safe.

FTB_Help

lg793 said:

haras_n0sirrah said:

niknaks0285 said:

lg793 said:

Hello all.
My mortgage with Santander got declined today.
After a month of back and forth questions, and sending documents, the application got declined at the under-writing stage.
The reason was that they had no proof that I've been in employment for the past 2 years.
The reason behind this, is that I was on an apprenticeship and got paid by BACS, and not through PAYE (I was way below tax threshold so no tax fraud going on, don't worry).
I've been on my 'full-time' wage for 3 months now, and I have proved clearly my new wage which they were satisfied with.
My mortgage advisor says I have no hope of appealing their decision as there is no evidence that I have been employed before my full-time wage, apart from my bank statements.
Has anyone had simar issues? What can I do??
We've already paid the deposit on the house, solicitor fees and mortgage broker fees as they were 100% sure that our application would sail by

There is a thread on here mortgage broker ask me anything. If you ask on that thread you may get a better and more professional answer. Just a question though, can the company you worked for as an apprentice not provide proof of employment? Will the lender allow this?  

That is my thread.
Santander are unlikely to overturn if they have a bee in their bonnet. As a lender they take day 1 employment so being 3 months in a job wouldn't have been a problem for them. The bigger issue is they have decided op has lied on his application. If I was his broker I would a) try to prove to Santander that no lies have been told to prevent a cifas marker and b) try another lender with 3 months employment history if that is what the ytd accumulation on his payslip shows as that is what has been shown to be provable 

First of all, thank you to everyone who has left helpful feedback. I would have replied sooner but I have had a lot to handle IRL.
Thanks especially to haras_n0sirrah, you seem really genuine and I appreciate that.
To those backing up Thrugelmir, try being in my situation for a minute. A 19 year old, trying to buy their first house, getting the mortgage declined after paying out so much already, then having someone on the internet tell you its basically your fault and theres no way to rectify it? Please. Is there really any need for it?
On another note, I have obtained a copy of my Employment Contract which I signed at the start of my apprenticeship. I really hope this works. My mortgage advisor/broker is sending this to Santander on Monday, so will hopefully have some information by the end of the week.
Again, thanks to everyone who left constructive replies

Sorry its been so stressful for you, although buying at 19 is soooo young, i worked part time from 16 whilst fulltime at college and uni and was no way financially stable nor did i want the financial responsibility of paying mortgage looming over me. At such a young age tying yourself into a financial commitment for the next 25 + yrs will be tough, i spent all my 20's travelling, i travelled to 23 different countries in my life. Now at 33, i am in a well paying stable job, engaged and just now buying my first property. Maybe have a hard think about if this is right for you right now at 19, i don't think the replies you've had were said in malice, just realistic thinking that lenders would have thought too, if you really think this is right for you then i hope it all works out for you

waribai

Would not declaring a credit card balance result in a CIFAS marker.? I didn't mention a £3k amount when applying with the MA at Barclays simply because I am intending to pay it off before drawing down the mortgage.

ScottL45

lookstraightahead said:

Irrespective of anything, it is really good advice to know that payslips are needed and a legal requirement. Remember this going forward and make sure that you keep them somewhere safe.

I don't think the advice in itself is in question.  As I said before, it's the tone.  Say things nicely.  Smug, arrogant, patronising or condescending tones are not helpful when people are already stressed enough.  

lg793

FTB_Help said:

lg793 said:

haras_n0sirrah said:

niknaks0285 said:

lg793 said:

Hello all.
My mortgage with Santander got declined today.
After a month of back and forth questions, and sending documents, the application got declined at the under-writing stage.
The reason was that they had no proof that I've been in employment for the past 2 years.
The reason behind this, is that I was on an apprenticeship and got paid by BACS, and not through PAYE (I was way below tax threshold so no tax fraud going on, don't worry).
I've been on my 'full-time' wage for 3 months now, and I have proved clearly my new wage which they were satisfied with.
My mortgage advisor says I have no hope of appealing their decision as there is no evidence that I have been employed before my full-time wage, apart from my bank statements.
Has anyone had simar issues? What can I do??
We've already paid the deposit on the house, solicitor fees and mortgage broker fees as they were 100% sure that our application would sail by

There is a thread on here mortgage broker ask me anything. If you ask on that thread you may get a better and more professional answer. Just a question though, can the company you worked for as an apprentice not provide proof of employment? Will the lender allow this?  

That is my thread.
Santander are unlikely to overturn if they have a bee in their bonnet. As a lender they take day 1 employment so being 3 months in a job wouldn't have been a problem for them. The bigger issue is they have decided op has lied on his application. If I was his broker I would a) try to prove to Santander that no lies have been told to prevent a cifas marker and b) try another lender with 3 months employment history if that is what the ytd accumulation on his payslip shows as that is what has been shown to be provable 

First of all, thank you to everyone who has left helpful feedback. I would have replied sooner but I have had a lot to handle IRL.
Thanks especially to haras_n0sirrah, you seem really genuine and I appreciate that.
To those backing up Thrugelmir, try being in my situation for a minute. A 19 year old, trying to buy their first house, getting the mortgage declined after paying out so much already, then having someone on the internet tell you its basically your fault and theres no way to rectify it? Please. Is there really any need for it?
On another note, I have obtained a copy of my Employment Contract which I signed at the start of my apprenticeship. I really hope this works. My mortgage advisor/broker is sending this to Santander on Monday, so will hopefully have some information by the end of the week.
Again, thanks to everyone who left constructive replies

Sorry its been so stressful for you, although buying at 19 is soooo young, i worked part time from 16 whilst fulltime at college and uni and was no way financially stable nor did i want the financial responsibility of paying mortgage looming over me. At such a young age tying yourself into a financial commitment for the next 25 + yrs will be tough, i spent all my 20's travelling, i travelled to 23 different countries in my life. Now at 33, i am in a well paying stable job, engaged and just now buying my first property. Maybe have a hard think about if this is right for you right now at 19, i don't think the replies you've had were said in malice, just realistic thinking that lenders would have thought too, if you really think this is right for you then i hope it all works out for you

Thank you, I do appreciate your feedback.
I know I'm still young, but I've known for years that I've wanted to get my own place. Luckily (however now its looking like it wasnt the best choice) I managed to get a good apprenticeship so I am able to afford it. The lender was completely satisfied with everything money-wise, just the lack of proof from before I was on the HMRC. 

lg793

lookstraightahead said:

Irrespective of anything, it is really good advice to know that payslips are needed and a legal requirement. Remember this going forward and make sure that you keep them somewhere safe.

Thank you.
I do have the payslips though, and I have my full bank records to match up to the payslips.
The reason was because from July 2018 to September 2020, my wages weren't going through the HMRC system, as my employer thought that because I wasn't earning enough to pay tax or NI, it didnt need to be registered. Of course we now know that it should have been, so thats the situation I'm in. 
My HMRC is now showing my full wages from September onwards

Meh123

waribai said:

Would not declaring a credit card balance result in a CIFAS marker.? I didn't mention a £3k amount when applying with the MA at Barclays simply because I am intending to pay it off before drawing down the mortgage.

Probably not, but it wasn’t a wise choice to not declare it as they’ll be able to see it when your application goes to underwriting?! I paid off my credit card beginning of October and it’s still showing on my credit file now....if it’s still not off by the time UW’ing get to our application I’m expecting them to ask for proof that it’s a £0 balance before they give a final decision.

Meh123

Thank you.
I do have the payslips though, and I have my full bank records to match up to the payslips.
The reason was because from July 2018 to September 2020, my wages weren't going through the HMRC system, as my employer thought that because I wasn't earning enough to pay tax or NI, it didnt need to be registered. Of course we now know that it should have been, so thats the situation I'm in. 
My HMRC is now showing my full wages from September onwards

Well whatever happens with this purchase at least you now know, also well done for being able to get yourself in the position to purchase a property at your age! I definitely couldn’t have done it aged 19 and back then you could buy a decent house for 40k.....

FTB_Help

It really sounds your employer has messed up, im sure they need to provide some sort of documentation when paying employees (payslips for paye, if contractors/freelancers, they need to invoice the company (and have a contract) for payment- this might be provided as proof) im pretty sure apprenticeship are also taxed regardless of the pay and the company should incur NI tax too. Maybe call up your hr first thing tomorrow too, to see if they can provide some other documentation that backs up the BACS you receive and take this with you in your meeting with Santander