Illustration retracted

Jglews

I had an illustration through Morgage advise bureau in feb, they got me the offer and requested their first fee of £200 to continue, after this was paid my lender requested more information which was provided and continued to ask for more paperwork ect, all this was met and now they have reduced my loan by 50% which doesn’t cover my re-Morgage. 

Is this because of rates on the rise, my illustration states it would be maintained until 09/22 
also MAB refuse to give me back money paid even tho they can’t commit to an offer. 

Is there an appeals procedure? 

ACG

If you have paid an application fee - they have made an application... 
This is one of the reasons I say only pay a broker fee on offer or completion. 
The loan amount wont have been reduced because of the increase in the case rate I would not have thought. 

If everything has been provided truthfully then I think you have a valid reason to make a complaint against MAB. Not only have they taken £200 and produced nothing for it, they have also carried out a credit check. But you need to find out why it has been declined first. Speak to MAB, if you do not get anywhere, speak to the lender. 

kingstreet

If the amount you can borrow has been cut by 50% this must be due to affordability. Did the income declared on the application match the evidence supplied to justify it?

Once an application is submitted, funds are normally reserved on the product applied for. If you are unable to take up the amount offered, the application/product will lapse.

Jglews

Earnings were as described, broker had sa302’s prior to going to lenders, my Ltd company profits increased this year by net 6.5k, which is the only change but shouldn’t an increase improve affordability? 

kingstreet

Jglews said:

Earnings were as described, broker had sa302’s prior to going to lenders, my Ltd company profits increased this year by net 6.5k, which is the only change but shouldn’t an increase improve affordability? 

Of course. What reason were you given for the reduced loan amount?

Jglews

Change of affordability due to Ltd company increasing profits they no longer want take profit into consideration and are offering just 2.5/2.7 xearnings

K_S

Jglews said:

Change of affordability due to Ltd company increasing profits they no longer want take profit into consideration and are offering just 2.5/2.7 xearnings

@jglews Is the Ltd.co. income a secondary one (i.e. is your main income something else, for example PAYE employment)?

ACG

Who is the lender? Most lenders take paye and dividends, although a few will do paye and net profit. 

Jglews

I’m self employed through my own Ltd company of which I am 100% share holder. Paye in div last two years was 15k and company net profit was 24k and 31k
wife is self employed part time hours and has 10k for two years

Jglews

Lender Halifax

kingstreet

Halifax works from average director remuneration and dividends evidenced by latest two years tax calculations/SA302s and accompanying tax year overviews. If the latest year is lower, they will discard the average and work from the latest year instead.

How have these changed in the period in question?