Mortgage first attempt negative result

[Sweetpea]

Hello all. I wonder if any of you have same experience as I do. Partner and I are trying to start settling in one place after moving from one place to another due to contracting status. We had been looking for a property and after 3 months we successfully found a property we both like and location wise is good for us too. Good access to motorway and and train station. We are both contracting at the moment just 10 minutes away from the property we found.

After several negotiations, offer has been accepted which is £5000 below the asking price. So, we proceed with the mortgage application, of course through a broker. Partner just started a new company so is not qualified for the mortgage. It is only my sole income is considered. At first everyhting went so well...Provided everything the broker requested: personal bank statements,business bank statements, council tax, SA302s, company tax return for 2 years, cv , current contract. Mortgaging for 70%LTV with my sole income average of 38k hourly rate of 40.

Expecting to move in to the property at the end of the month, however, yesterday the broker just informed that underwriter is not confident of our affrdability of the loan. They try to convince underwriter and asked us additional documents, including partner's accounts & SA302s.

We just realise, that one factor maybe affectingunderwriter's decision is that, they haven't seen the money on our joint account savings and fixed deposits. I asked broker about this but haven't got a reply. It might not possible to consider partner's income income.

Total savings is more than 50% of the property value but decided to have 30% deposit only beacuse FTB and need to buy furnitures etc...

ANyone has an idea/experience if sending all our accounts, showing all the money we got would raise our possibilty getting the mortgage?

Thank you.

[FarmerPalmer]

Talk to Contractor Money.

From experience, they have arranged mortgages based on based on contract rates, and not 3 years accounts, so if your partner is new to contracting,this would allow both incomes to be considered.

Contractor Mortgages - Fees Free Advice Saves you £500+

No connection, except they previously arranged a mortgage for me.

[Sweetpea]

Talk to Contractor Money.

From experience, they have arranged mortgages based on based on contract rates, and not 3 years accounts, so if your partner is new to contracting,this would allow both incomes to be considered.

Contractor Mortgages - Fees Free Advice Saves you £500+

No connection, except they previously arranged a mortgage for me.

Hi Farmer Palmer thank you for your reply. We did go to a broker specialising contractors as well. And was told that mortgaging will be only through the hourly rate but then was asked for two years business accounts, 2 years SA302 and did not consider my partner because my sole income is enough. However, during underwriting, we were told a negative feedback re: affordability and they are trying to convince underwriter of our capability to pay the mortgage but requires my partners documents as well.

If this mortgageapplication is declined by the lender, and we try to proceed to another broker, not sure if this affects our credit history. Another thing, the property we look might be given to another buyer as the owner is also moving to another property.

I am hopeful that maybe giving all our bank statements showing our all our savings might change the mind of the underwriter.

We can send partners latest 2012 SA302 and 1 year business account as well but they are asking for two years.

By the way what lender did contractor money arranged for you? If you don't mind telling.

[DeludedAussie]

Talk to Contractor Money.

From experience, they have arranged mortgages based on based on contract rates, and not 3 years accounts, so if your partner is new to contracting,this would allow both incomes to be considered.

Contractor Mortgages - Fees Free Advice Saves you £500+

No connection, except they previously arranged a mortgage for me.

I would stay away from contractor money - They were awful with my application recently

There was someone else on the board who also had a very hard time with contractor money

Try Martin from AS Financials - He knows his stuff and bends over backwards

[Wanderer]

Total savings is more than 50% of the property value but decided to have 30% deposit only beacuse FTB and need to buy furnitures etc...

That's bizzare, you guys are obviously well able to afford it if your net worth is 50% of the house price. I guess you have to shop around if the broker can't do it for you.

May I suggest that you get a fully flexible mortgage. I got one of those from "The One Account" about 12 years ago and it's served me well through some truly massive ups and downs. Huge dividend, tax and directors loan payments went in and out and then sometimes nothing at all while I took a few months off work or waited till the next financial year to draw more dividends.

I would have had a lot of hassle on a number of occasions (both credit and debit wise) without it so it's highly recommended if you can handle having a current account that shows up as 6 figures overdrawn on the ATM receipts!

[FarmerPalmer]

By the way what lender did contractor money arranged for you? If you don't mind telling.

Woolwich/Barclays offset plan, who refused when I attempted to go direct, but accepted when I went through them.

[Sweetpea]

I would stay away from contractor money - They were awful with my application recently

There was someone else on the board who also had a very hard time with contractor money

Try Martin from AS Financials - He knows his stuff and bends over backwards

Hi DeludedAussie. That's good to hear you were treated well by AS Financials. So, hows your mortgage progressing? Our broker was also very helpful all through the mortgage process but it was in underwriting that our application got a problem.

[Sweetpea]

Woolwich/Barclays offset plan, who refused when I attempted to go direct, but accepted when I went through them.

Hi FarmerPalmer we are also with Woolwich/Barclays as suggested by our broker, however all our money is with another bank whom we were banking since the beginning.

Thank you for your information. I will be updating you guys hows our mortgage progressing. I am still hopeful that it will be successful. few weeks to go before the seller will give way to other buyers.. sad..sad..sad

[DeludedAussie]

Hi DeludedAussie. That's good to hear you were treated well by AS Financials. So, hows your mortgage progressing? Our broker was also very helpful all through the mortgage process but it was in underwriting that our application got a problem.

I applied with Halifax - I am not joking but I had a mortgage offer within four days from the date of application for a house we fell in love with

The valuation happened on day two and the offer came through on day four

[DeludedAussie]

Hi FarmerPalmer we are also with Woolwich/Barclays as suggested by our broker, however all our money is with another bank whom we were banking since the beginning.

Thank you for your information. I will be updating you guys hows our mortgage progressing. I am still hopeful that it will be successful. few weeks to go before the seller will give way to other buyers.. sad..sad..sad

Apply to the halifax - They will turn around your application in less then a week !!