What the f* is going on with our mortgage application?

kingstreet

Rasberrycreamcake said:

...we only have 2 years' UK address history because we were living in Switzerland before, his employer is based in London (remote job) and so are we right now but we are moving to the Midlands, my husband has only been working for his employer for one month, I am self-employed (paid £45/hour) but have earned very little since being in the UK because I had a baby...

Seems like an odd choice, Santander. How are you evidencing your income since coming back to the UK? You have mentioned the last few months but if you are being treated as SE that income is going to be in a future tax year. It may help with post-Covid plausibility but not with affordability now.

Rasberrycreamcake

@kingstreet Oh no, that's worrying that you say Santander is an odd choice. Why do you say that, because they are really picky?

 The broker was first going to go with Nationwide until he realised we didn't have 3 years of UK address history and I think also because of the maintenance not being paid in pounds. We need to include the maintenance for affordability and I get the impression most lenders won't accept income in pounds even if it's paid into a UK account.

I have two years' of self-employed tax returns (and corresponding SA302s and TYOs) - each year showing around £10,000. What I earned in Jan, Feb and March I've declared on my April 2020-April 2021 tax return which I've already submitted.

Rasberrycreamcake

I'm using the traditional accounting method rather than the cash basis. I just checked and I actually invoiced my client on 2 April so that's why I included the income in the 2020-2021 tax year even though the invoice wasn't paid by that point.

kingstreet

Sorry, I lost track of time, we're actually in 2021/22 now so yes, Jan/Feb/Mar '21 earnings will be in your latest HMRC Tax Calc & TYO if you have already filed. Looking at it for a little longer, the new job start; maintenance in CHF; no three year UK history there aren't that many options and it may well be Santander was the least worst...

Rasberrycreamcake

@kingstreet Haha, "the least worst", yes I think you're right and that's why.

Realistically we probably should wait a year to buy as then we'll have the 3 years' UK address history and I should have one tax year with higher earnings meaning we might not need to include the maintenance - but house prices are going up so fast right now and the rent in London (almost 3 times the mortgage repayments) for a tiny 2-bed flat for a family of four is killing us 

Rasberrycreamcake

@kingstreet Out of interest do you know why lenders insist on 3 years' UK address history? Just because they deem it to be high risk if you don't have it or because it's linked to having a credit score/report?

I keep reading everywhere that you can't have a credit score without 3 years' UK address history, but according to Experian my husband's score is good and mine is excellent, how can this be?

MaryNB

Rasberrycreamcake said:

@kingstreet Out of interest do you know why lenders insist on 3 years' UK address history? Just because they deem it to be high risk if you don't have it or because it's linked to having a credit score/report?

I keep reading everywhere that you can't have a credit score without 3 years' UK address history, but according to Experian my husband's score is good and mine is excellent, how can this be?

Because the Experian score is a load of nonsense. The credit rating agencies scores are just marketing gimmicks. A lender will look at your credit history and do their own internal assessment. 

I presume the issues over UK address history are that they like to see stability and that you've been using UK financial institutions for a while. Using credit when living in other countries has zero impact on your credit history here. When I moved to the UK I couldn't even get a credit bard with the bank where I opened my current account I had to get a credit building card for the first year or so. This was despite having credit cards in my home country. I had no financial data on my credit report. 

kingstreet

Lenders set their own risk profile. Many want a three year UK address history so they can ensure you aren't hiding a dodgy credit history somewhere along the line.

K_S

@Rasberrycreamcake Out of professional interest, please do update the thread on how you get on with the Santander app, good luck!

Rasberrycreamcake

@K_S Okay, will do. Thanks