Broker Error - What to do?

I am struggling with my broker and don't know what to do. I thought we were a simple application as we have good employment histories and no adverse issues. So far the broker has placed us with Halifax, to which we received a quick decline.

We now have an application in with Natwest and our broker has made an error with my bonuses. My assigned broker is out of the office till 20th, so I am dealing with her assistant.

This year I received £2325 in discretionary bonuses. I was unaware these were even being included in the figures on the application. Today I have discovered that they are being included and also my broker has included them as Guaranteed Bonuses.

Natwest have now requested two years’ evidence of these Guaranteed Bonuses and obviously I cannot provide it. The brokers assistant has told me that they are relying on these bonuses for affordability and if I cannot provide evidence it will likely decline! I don’t know what to do.

I have checked our borrowing with the online Natwest Mortgage calculator. We are trying to borrow £225,950. If I put in just our basic salaries and commitments and no bonuses it says we can borrow up to £249500. I may be missing something here, but why then is my broker insisting that my bonuses must be included?




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Comments

  • ACG
    ACG Posts: 23,677
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    Send the assistant an email with a screenshot of the calculator based on the figures you have entered.

    Explain that you have not had the bonuses for 2 years and if they are needed, the broker should have obtained evidence for them prior to applying.

    You expect them to resolve this issue ASAP as they are causing you unnecessary stress and worry.

    Assuming you have entered the information correctly you should be fine. The assistant could be just trying to scare you in to providing the documents to make his/her life easier.

    Natwest are quite a nice lender in general and should be able to get there assuming affordability stacks up.

    DO NOT call natwest yourself, it could cause more harm than good but I do think it can be rescued based on what you have said.
    I am a Mortgage Adviser
    You 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.
  • kingstreet
    kingstreet Posts: 38,691
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    Did you include 3% of the equity loan as a cost?

    Any ground rent and/or service charges?
    I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • ACG
    ACG Posts: 23,677
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    Is this not a "normal" purchase?
    If that is the case, they have still messed up with the bonus, but you might need to look at an alternative lender if it does not stack up.
    I am a Mortgage Adviser
    You 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.
  • kingstreet
    kingstreet Posts: 38,691
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    ACG wrote: »
    Is this not a "normal" purchase?
    If that is the case, they have still messed up with the bonus, but you might need to look at an alternative lender if it does not stack up.
    No. If you look back through the OP's threads you'll find one which says it's a HTB EL application.
    I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • jdc23
    jdc23 Posts: 48
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    Thank you for the responses. I'm sorry, I should have been clearer. This is a Help to Buy Equity Loan Purchase.

    I have not included the Equity Loan at 3%. This works out at £1799. How do input this in the calculator. There is ground rent which works out at £28 monthly, I have included this as "Other committed expenditure."
  • kingstreet
    kingstreet Posts: 38,691
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    You input 3% of the loan, divided by twelve.

    You also enter any ground rent & service charges.
    I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • jdc23
    jdc23 Posts: 48
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    Thank you for your help. I have now included the equity loan and ground rent in the Other Committed Expenditure, it worked out as £177 monthly. I have checked these figures with both the Natwest website calculator and the Natwest Intermediaries calculator.

    On the Natwest website calculator I put our deposit + the total equity loan amount as the deposit.

    On the Natwest Intermediaries calculator I put Loan to Value as 75%

    Both calculators state we can borrow up to £249,700. Without bonuses included.

    We are looking for a mortgage of £225,950. I will screenshot and ask for an explanation from my broker.
  • BLOW_FLY
    BLOW_FLY Posts: 115 Forumite
    IMHO I think the mortgage calculators on lenders web sites can be a bit misleading and are there as a bit of a teaser / tempter to get people interested in applying for mortgages with them.

    From the lenders POV the more people they get applying the more chance they have of selling mortgages.

    So the collateral damage done by having to decline a few on that basis doesn't really matter as they will have probably gained more than they lose.

    Just a personal opinion of course.

    BF
  • ACG
    ACG Posts: 23,677
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    Ignore me then completely. I do not do HTB EL mortgages.
    Kingstreet is your man.
    I am a Mortgage Adviser
    You 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.
  • jdc23
    jdc23 Posts: 48
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    I emailed over my screenshot of the calculator. I have just received an email in reply agreeing that we do fit affordability without my bonuses included. NatWest are going to assess us without my bonuses included. All very strange!
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