Query about National Hunter, CIFAS and Mortgage

MattMattMattUK

ahmjt said:

3. Lending criteria are different for lenders. I am currently employed as "Fixed-term contractor" (FTC) and I had a gap in employment between Aug 2019 - Mar 2020. The Accord Helpdesk person thinks this is a likely cause of denial although he admitted he did not have any details from the underwriter's team. 

With these info, now I am thinking it may have to do something with my employment status during last years. 
I have been freelancing (LTD) from Jun 2018 till Aug 2019. After that, I was out of contract for five months but was drawing a minimum salary from my own LTD company. I went back to permanent employment since Mar 2020.

I can see a potential issue here straight away and I am not even a mortgage advisor. 

You say you are a Fixed-term contractor, but you also run a Limited company as a freelancer, you say you were out of contract, also drawing a salary, then went back to permanent employment. Due to the lack of clarity in all that I suspect there might be some issues on the application.

Your employment by your own limited company, are you paid the same amount regularly, do you also issue dividend, is that declared correctly?

Your status as a "Fixed-term contractor", is your limited company contracted and paid via invoice, are you paid as self-employed, are you paid via a fixed term PAYE contract etc.

You say you went back to "permanent employment", again was this via PAYE with a third party employer, your own limited company, on a self employed basis?

ahmjt said:

Anyway, it is looking more and more like a complex thing to me. If I like to have professional advise for it where should I be knocking?

It probably should not be that complicated, provided that you have all the relevant paperwork and that your self-assessments and company accounts are compliant, accurate and up to date. Do you file your own tax returns and company accounts or does an accountant?

ahmjt

MattMattMattUK said:

ahmjt said:

3. Lending criteria are different for lenders. I am currently employed as "Fixed-term contractor" (FTC) and I had a gap in employment between Aug 2019 - Mar 2020. The Accord Helpdesk person thinks this is a likely cause of denial although he admitted he did not have any details from the underwriter's team. 

With these info, now I am thinking it may have to do something with my employment status during last years. 
I have been freelancing (LTD) from Jun 2018 till Aug 2019. After that, I was out of contract for five months but was drawing a minimum salary from my own LTD company. I went back to permanent employment since Mar 2020.

I can see a potential issue here straight away and I am not even a mortgage advisor. 

You say you are a Fixed-term contractor, but you also run a Limited company as a freelancer, you say you were out of contract, also drawing a salary, then went back to permanent employment. Due to the lack of clarity in all that I suspect there might be some issues on the application.

Your employment by your own limited company, are you paid the same amount regularly, do you also issue dividend, is that declared correctly?

Your status as a "Fixed-term contractor", is your limited company contracted and paid via invoice, are you paid as self-employed, are you paid via a fixed term PAYE contract etc.

You say you went back to "permanent employment", again was this via PAYE with a third party employer, your own limited company, on a self employed basis?

ahmjt said:

Anyway, it is looking more and more like a complex thing to me. If I like to have professional advise for it where should I be knocking?

It probably should not be that complicated, provided that you have all the relevant paperwork and that your self-assessments and company accounts are compliant, accurate and up to date. Do you file your own tax returns and company accounts or does an accountant?

Hi MattMattMattUK,

Thanks for raising these points. I guess it shows the scope for confusion is always there.

Just to help to answer your questions - my employment history since 2018 (not going back further).
Until Jun 2018: permanent employee for a company A.
July 2018 - Aug 2019: freelance contractor, drawing salary and dividend from my limited company (lets call it X).
Aug 2019 - Feb 2020: no active contract, drawing salary and dividend from company X. Since Mar 2020, stopped being an employee of company X.
Mar 2021 - present: working as fixed-term contract (same as permanent role with yearly renewal) for a company B. This is like a fixed term PAYE employee for B.

During my employment with company X, I was paid the same amount of salary regularly. The amount is lower than my current salary. As director of company X set amount of dividends were also drawn. All company accounts, self-assessments are done by the accountant.

Hope this helps - you are right that Accord requested my freelancing contract, company filing, corporate tax, self-assessment along with PAYE info (Gov gateway). 

ahmjt   
 

Thrugelmir

ahmjt said:

MattMattMattUK said:

ahmjt said:

3. Lending criteria are different for lenders. I am currently employed as "Fixed-term contractor" (FTC) and I had a gap in employment between Aug 2019 - Mar 2020. The Accord Helpdesk person thinks this is a likely cause of denial although he admitted he did not have any details from the underwriter's team. 

With these info, now I am thinking it may have to do something with my employment status during last years. 
I have been freelancing (LTD) from Jun 2018 till Aug 2019. After that, I was out of contract for five months but was drawing a minimum salary from my own LTD company. I went back to permanent employment since Mar 2020.

I can see a potential issue here straight away and I am not even a mortgage advisor. 

You say you are a Fixed-term contractor, but you also run a Limited company as a freelancer, you say you were out of contract, also drawing a salary, then went back to permanent employment. Due to the lack of clarity in all that I suspect there might be some issues on the application.

Your employment by your own limited company, are you paid the same amount regularly, do you also issue dividend, is that declared correctly?

Your status as a "Fixed-term contractor", is your limited company contracted and paid via invoice, are you paid as self-employed, are you paid via a fixed term PAYE contract etc.

You say you went back to "permanent employment", again was this via PAYE with a third party employer, your own limited company, on a self employed basis?

ahmjt said:

Anyway, it is looking more and more like a complex thing to me. If I like to have professional advise for it where should I be knocking?

It probably should not be that complicated, provided that you have all the relevant paperwork and that your self-assessments and company accounts are compliant, accurate and up to date. Do you file your own tax returns and company accounts or does an accountant?

Hi MattMattMattUK,

Thanks for raising these points. I guess it shows the scope for confusion is always there.

Just to help to answer your questions - my employment history since 2018 (not going back further).
Until Jun 2018: permanent employee for a company A.
July 2018 - Aug 2019: freelance contractor, drawing salary and dividend from my limited company (lets call it X).
Aug 2019 - Feb 2020: no active contract, drawing salary and dividend from company X. Since Mar 2020, stopped being an employee of company X.
Mar 2021 - present: working as fixed-term contract (same as permanent role with yearly renewal) for a company B. This is like a fixed term PAYE employee for B.

During my employment with company X, I was paid the same amount of salary regularly. The amount is lower than my current salary. As director of company X set amount of dividends were also drawn. All company accounts, self-assessments are done by the accountant.

Hope this helps - you are right that Accord requested my freelancing contract, company filing, corporate tax, self-assessment along with PAYE info (Gov gateway). 

ahmjt   
 

In the midst's of a global pandemic. Appears to be your current employment and recent history that's the issue. FTC's are expendable. 

SeanG79

2. For all denied mortgage applications, lenders put a marker in National Hunter.

This is patently false. 

National Hunter is a Fraud Prevention Database - you only get put on National Hunter if the Bank suspects you have given false/inaccurate information in an attempt to obtain credit

ThisnotThat

SeanG79 said:

2. For all denied mortgage applications, lenders put a marker in National Hunter.

This is patently false. 

National Hunter is a Fraud Prevention Database - you only get put on National Hunter if the Bank suspects you have given false/inaccurate information in an attempt to obtain credit

You're thinking of CIFAS.

Every National Hutner checks results in something being added.  Clear, Inconsistency or Refer.

fastvision

Dear ahmjt,

May I ask how is your case doing as we are stuck in exactly the same position. Although I am a bit puzzled in your case.

You said you started the whole process in Oct-20.  Bank has 14 days to give you their final response and if they decline to remove your name from NH and SIRA then you can escalate your case financial ombudsman. It seems your case is going on for some time now.

I thought it will be very simple to clear the name as theoretically bank need to confirm that you didn't lied in your application so they need to check from their sources if the salary you have stated in application is correct unless you haven't declared your employers for the last three years. 

Regards

ahmjt

fastvision said:

Dear ahmjt,

May I ask how is your case doing as we are stuck in exactly the same position. Although I am a bit puzzled in your case.

You said you started the whole process in Oct-20.  Bank has 14 days to give you their final response and if they decline to remove your name from NH and SIRA then you can escalate your case financial ombudsman. It seems your case is going on for some time now.

I thought it will be very simple to clear the name as theoretically bank need to confirm that you didn't lied in your application so they need to check from their sources if the salary you have stated in application is correct unless you haven't declared your employers for the last three years. 

Regards

Sorry for the in my response. My mortgage process started in Oct 2020. When that didn't go through, I checked the NH report and all entries linked to Accord-YBS were clear. I requested a more recent report which contains 'inconsistency' against YBS entries. For that I have requested all info from Accord-YBS which I have been told would take 28 working days. This was done on 28 June. Once I receive this from Accord-YBS, I guess then I need to check for inconsistencies.

Regards,

Ahmed

fastvision

Dear Ahmed,

it seems we are sailing on the same boat. Even exact dates as we requested our DSAR with nationwide on 28th of June to know what they did.

Although in your case you have a good broker as  he told you the exact reason that your name is in National Hunter. When we first applied in June-2020, our broker made in a mistake in my wife surname that obviously put our name on National Hunter as inconsistent data as they were not able to match surname and dob to correct person.

I would also advise you do DSAR on National SIRA  which is equivalent to National Hunter and managed by Equifax.

You will need to remove your name from both databases in order to secure a mortgage.

Regards 

ahmjt

fastvision said:

Dear Ahmed,



I would also advise you do DSAR on National SIRA  which is equivalent to National Hunter and managed by Equifax.

You will need to remove your name from both databases in order to secure a mortgage.

I checked SIRA report last year, no entry there at that time but it does not harm to check again - so will do so - thanks. I do not know if it is possible to remove name from CIFAS or NH unless the entry is there due to wrong information.