AIP referred... incorrect outgoings?
PurplePow
Posts: 1,143 Forumite
Using a broker. FTB. £28.5k salary, applying for £86k mortgage at 88% LTV.
No missed payments, defaults, dont use overdraft. Credit report fine.
On my mortgage application I put down a credit card with a £500 balance (0% money in savings). Application states £30 monthly.
I also have another credit card I used for all my general spending and pay off as I go, so always paid in full. I wasnt sure how to put this on my mortgage application, the broker advised me the worst case balance for any given month, I said £500 but on my credit report I see its anywhere from actually being in credit to £200 ish. He said as its paid off in full each month to put the £500 as monthly payment.
I also have a Next Directory account again same as above always paid in full. Advised putting the £50 monthly repayment.
Also declared my student loan.
Submitted the application and broker sent me through the AIP which I forwarded to estate agent who rang to inform me it says its with the underwriters because its failed on affordability. My broker sent me the email saying here!!!8217;s the AIP but hadn!!!8217;t even read it?!
When I look indeed it does say that. It says my monthly outgoings is £663 which a quick look on the lenders website calculator clearly shows wouldn!!!8217;t lend me £86k!! I don!!!8217;t have £663 monthly payments on the above. Has my broker mis advised me here in regards to the £500 payment?
If it fails on affordability can I resubmit with correct monthly payments?
No missed payments, defaults, dont use overdraft. Credit report fine.
On my mortgage application I put down a credit card with a £500 balance (0% money in savings). Application states £30 monthly.
I also have another credit card I used for all my general spending and pay off as I go, so always paid in full. I wasnt sure how to put this on my mortgage application, the broker advised me the worst case balance for any given month, I said £500 but on my credit report I see its anywhere from actually being in credit to £200 ish. He said as its paid off in full each month to put the £500 as monthly payment.
I also have a Next Directory account again same as above always paid in full. Advised putting the £50 monthly repayment.
Also declared my student loan.
Submitted the application and broker sent me through the AIP which I forwarded to estate agent who rang to inform me it says its with the underwriters because its failed on affordability. My broker sent me the email saying here!!!8217;s the AIP but hadn!!!8217;t even read it?!
When I look indeed it does say that. It says my monthly outgoings is £663 which a quick look on the lenders website calculator clearly shows wouldn!!!8217;t lend me £86k!! I don!!!8217;t have £663 monthly payments on the above. Has my broker mis advised me here in regards to the £500 payment?
If it fails on affordability can I resubmit with correct monthly payments?
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Comments
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The broker has put £500 as a monthly payment on a credit card that gets cleared in full each month? No wonder it is failing affordability.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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The broker has put £500 as a monthly payment on a credit card that gets cleared in full each month? No wonder it is failing affordability.
Yes, I followed his advice and now I!!!8217;m thinking thats terrible. Will the underwriters see a £500 credit card with a £500 monthly payment as being a card thats paid off in full? Its quite clear from my credit report its not the case!0 -
My broker also took a payment from me for the valuation today, before he sent on the !!!8220;AIP!!!8221; to me, that actually says the decision has gone to underwriters.0
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Not always. Sometimes the AIP will pass and in order to submit the application you have to pay for the valuation. Usually though the valuation will only be instructed once the underwriting is complete but sometimes they will instruct it on day 1.
Assuming it has not been carried out yet, ask your broker to speak to the lender to get them to hold fire on instructing the valuation or cancel it if it has been until this issue is resolved.
Your broker just needs to alter the application from a £500 a month commitment to "will be cleared in full prior by completion" or words to that effect. It should be an easy fix, it just sounds like inexperience and rather than checking with the lender, they have had a guess.
No case should fail on affordability where the client has been honest and the figures entered correctly as you can check the lenders affordability calculators prior to doing a DIP.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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