Underwriter reduced mortgage loan amount

Memzy

Hi guys. 

I’ve had a lot of bad luck in the build up to purchasing a brand new build apartment. 

After receiving an AIP from the lender for the mortgage amount of £259,200, exactly 10% of the property price £288k) I was advised I could put the £5k reservation fee down to take the apartment off the market. 

Since then, the lender reduced the amount from £259,200 to £251,750 because of a mistake made by my broker and using my old student loan off my old payslip. Please note that at this point in time I had just started a new job and not received a payslip to see what my student loan expense would be. 

I decided to put the extra deposit in and still proceed. The lender then found something in my credit report and I can assure you there were no red flags as did my broker but they reduced another £750 to £251k so wasn’t the end of the world. 

However, since 2 months have passed since then and I’ve received 2 payslips from my new employer, the underwriter has calculated and reduced my loan amount by another £4k to now £247k!

This is ridiculous as I’ve had to stump up from what was originally a 10% deposit of £28.8k to now £41k!

Yes you might say just pull out of the deal but the £5k reservation is non-refundable and I’ve paid £1.5k in solicitor and brokerage fees so it’s either put the extra deposit in or risk losing £6.5k. 

The property should be built end of this month and pending an physical valuation I should receive a mortgage offer with the caveat of a re inspection once built. Surely nothing can go wrong there but I wouldn’t be surprised?

How can underwriter drop my affordability by over £12k after the AIP. It’s put me in a tight situation. 

Any advice please?!

AFF8879

Memzy said:

However, since 2 months have passed since then and I’ve received 2 payslips from my new employer, the underwriter has calculated and reduced my loan amount by another £4k to now £247k!

What reason was given for this decrease?

custardly

For future reference for anyone reading this. AIP means nothing, I could get an AIP for any amount I want within about 15 minutes. Never rest your hopes and dreams on a AIP!

kingstreet

Are the income figures on the latest two new payslips lower?

That would explain a reducing loan amount.

Memzy

AFF8879 said:

Memzy said:

However, since 2 months have passed since then and I’ve received 2 payslips from my new employer, the underwriter has calculated and reduced my loan amount by another £4k to now £247k!

What reason was given for this decrease?

The first reduction was that my broker had made a mistake with the student loan as she didn't have any new payslips to go off and used my old one.

The second reduction was that the underwriter had found a commitment in the report although it's clean.

The third reduction was based off my actual payslips and the student loan figure in there after tallying up the calculations. 

Memzy

custardly said:

For future reference for anyone reading this. AIP means nothing, I could get an AIP for any amount I want within about 15 minutes. Never rest your hopes and dreams on a AIP!

Unfortunately I was never aware of this as a first time buyer and neither did my broker care to inform me

Memzy

kingstreet said:

Are the income figures on the latest two new payslips lower?

That would explain a reducing loan amount.

The new job has given me a large salary increase, just over a 53% increase from my old salary. 

Maybe the broker overestimated what I would be receiving but even I know there is a salary calculator on the internet for free and my new contract states what my salary is. This shouldn't be new information to either the broker or lender.

custardly

Memzy said:

custardly said:

For future reference for anyone reading this. AIP means nothing, I could get an AIP for any amount I want within about 15 minutes. Never rest your hopes and dreams on a AIP!

Unfortunately I was never aware of this as a first time buyer and neither did my broker care to inform me

Completely understand mate. Similar thing happened to me. I always thought AIP was gospel. Then I realised that you can get one online from many banks easily for any amount you want.