Help Needed: Mortgage Refusal Due to Possible Financial Oversight

ACG

You will need to wait until you hear back from national hunter, but it is a joint application so it could be something about both of you - although we are still assuming that is the issue. 

On a side note, what you are thinking brings a whole host of other potential issues:
Stamp duty implications,
CGT implications,
Lenders who accept applications for one half of a married couple,
Lenders who accept applications for one half of a married couple and allow the other half to live in the property,
The fact that deposit is coming from what I assume is a joint asset and the equity will belong to just one of owners - does that directly/indirectly cause rights issues in the property? 

Did you have Consent to let on the property let out? If you did, I think there might be lenders who will consider you doing things the right way. I would suggest getting a second (or maybe third in this case) opinion. 

fatboydaz

Hello everyone,

I spoke to a solicitor who specialises in this area. Due to a mistake we made by not declaring our rental income in the first year on our tax returns, a mark has been placed on our record, which will remain there for 6 years. Despite having rectified the mistake, the solicitor mentioned that it ultimately comes down to the discretion of the person handling the case on the day. It's essentially a roll of the dice, and the legal costs to contest this would be between £5,000 and £8,000, which is beyond our budget.

We are still waiting for the report, but given the potential costs, we're exploring other options. One possibility we're considering is converting our Buy-to-Let (BTL) property back into a residential property. However, we're unsure if this would be feasible given our current status on the register.

Has anyone been in a similar situation or have any insights on whether converting a BTL property back to residential is a viable option under these circumstances? Any advice or shared experiences would be greatly appreciated.

Thank you in advance for your help.

ACG

Have you established that that is 100% the problem? Assuming it is, converting the BTL to a residential will still require a mortgage application unless you are on Consent to let rather than a BTL. 

But in any event, what is your ideal scenario? 
If it is to keep the BTL and buy a new residential, I feel like there is some potential for that. I spoke to a lender about this (albeit vague as I do not have the details) as I was on the phone to them about something else at the time, and they said they can look at those sort of things. So I feel like it is worth exploring. But it assumes that is definitely the issue. 

fatboydaz

ACG said:

Have you established that that is 100% the problem? Assuming it is, converting the BTL to a residential will still require a mortgage application unless you are on Consent to let rather than a BTL. 

But in any event, what is your ideal scenario? 
If it is to keep the BTL and buy a new residential, I feel like there is some potential for that. I spoke to a lender about this (albeit vague as I do not have the details) as I was on the phone to them about something else at the time, and they said they can look at those sort of things. So I feel like it is worth exploring. But it assumes that is definitely the issue. 

Hi, I am not 100% sure but after looking at my documents for the past 2 weeks I can only assume it's that as everything else is perfect. We have no Cifas markers, we only have 1 car on lease and live a very simple life with the kids. Do you think that there would be lenders who would look at somebody having a mark on the national hunter database and still give a mortgage if you provide them with the reason why the marker was placed there and the fact that it has been rectified?

Thanks

ACG

Potentially. 
Apparently it comes down to the details. Its not something I have had to look into before, but when I raised it with one of the lenders we use for quirky cases, they said they can consider it. Difficult to say for sure but there is some potential. 

fatboydaz

Hi All,

So just got my report back

Docs - Altered

Reasons = Conflicting or Unconfirmed Employment Details 

Not sure where to go from here. 

ACG

Employment details in fairness could well be the self assessment not showing what it should. Assuming your job is genuine and the payslips are correct and everything there marries up with HMRC. 

fatboydaz

Just spoke to a specialist solicitor and said you will not have these removed so no point trying to fix it. Even if you have made a mistake your accountant has landed you right in it and it's something that both banks will not go back and rectify as they did not make the mistake. 

Hoenir

What has the Accountant done wrong? Not the Accountant's responsibilty to ensure that all income is correctly declared. 

fatboydaz

I agree it was totally my fault.