warrenm2

I'm moving house, so phone up the mortgage company to say I'm moving and to send me some paperwork to transfer it. Oh no! I've got to apply for a new mortgage. I've got to be reassessed even though its going to be 35% LTV and I've had a mortgage with them for 10 years. And because I changed from full time to contract work a year ago they wont assess my mortgage, even though I bank with them as well and they can see perfectly well how well I manage my money. Can't guarantee my income you see

Box ticking bunch of jobsworth w*****s!

Leslie

It must be worth more profit to them as well I imagine.

Les

billythekid

Ah yes, wait for the "we dont do that product any more" line followed by "but we can do you a similar one for a £999 fee"...

EddScott

If you are on contract or self employed they usually like to see a few years under the belt before offering a mortgage - these days anyway.

Have a friend who went self employed and was basically doing the same thing as before but far higher earnings in the end. Couldn't get a mortgage anywhere until she was either 2 or 3 years down the line.

Its the way things are now.

I know a nurse who wanted to get a remortgage but interest only. Assumed the NHS pension would be accepted as the vehicle to pay off the sum at the end of the term and they rejected it. They would take a personal pension which could very easily be stopped at any time as long as it was running for 2 years and had regular payments but not an NHS pension which AFAIK is compulsory and AFAIK taking the tax free cash is compulsory too. This was Woolwich BTW

stevebt

iTrader: (8)

They still don't see it that way as I went to Halifax for a re mortgage and I bank with them as well, The house was valued by Northern Rock at £220,000 I only need the mortgage for £50k They wouldn't give me a mortgage as I'm missing my last years accounts but my tax returns are up to date. Its impossible for them to loose money if they reposesed my house but it just seems they have turned ridiculous on how they lend money out now

Neanderthal

iTrader: (6)

I think it's always been if you are self employed/run your own business. You need at least 3 years accounts, it's just now you can't self certify.
My mortgage deal is up in September and I'm 3.5 years in to being self employed and only just doing well out of it so God knows what they'll do with us.

stevebt

iTrader: (8)

I have been self employed for 25 years so I think I had enough years accounts


What they couldn't understand was why my accounts were less money for the last four years, errr hang on isn't that your fault the construction industry is fecked

Luan Pra bang

Don't get me started I am purchasing a BTL valued 75k buying for 67k only one lender would accept the mortgage despite a 17k deposit and they still want over 4% interest and £2300 in fees., Then people wonder why the economy is ****ed, its because the banks are too busy stealing peoples money to make up for their ****ty decisions.

Ste RB5138

Its scary reading how tight Mortgage lending has become, such a difference to the last decade.

I cant see me upgrading from my one bedroom flat for a while

Dingdongler

Not quite sure what the issue is, I'm glad that the banks are being more careful with their lending when it comes to property (especially btl)

At the end of the day you are buying this property for commercial gain, to make a profit. But you don't want the bank to treat it as such and make some money as well?

Luan Pra bang

My issue is that they asses the risk badly, because the banks were so inept at estimating values on new build flats they lost money on clearly overvalued new housing. This meant developers could overvalue and give deposit incentives so you could move in with zero deposit. and still have a decent LTV . This means in effect that if you are buying at a heavy discount from a genuine valuation then the bank refuses to acknowledge the extra value and charges for a risk that is not there. I have valuations for the property I am buying for between 75k and 90k which in theory means the bank would be quids in if I defaulted as they now have in reality a 65% LTV. By the banks twisted logic they have in actual fact only got 75% LTV because they cannot accept the possibility of buying under a market value.

cookstar

iTrader: (6)

I have a very good contact for mortgages, especially BTL, if you want his number dropnme a PM

Kev_turbo

Got a mortgage for a house move last year. Wife is full time employed, I'm self employed. Mortgage wouldn't go through with me listed as self employed but put me down as UNemployed and it went straight through!!!

I had the necessary 3 years accounts and use the same bank for the business. Absolutely no loans, debts, overdrafts, etc for 5 years other than mortgage.

Why the downer on self employed people?

Dingdongler

Ok, I take your point and agree about their reckless behavior with new builds in the past.

However is it unreasonable for them to charge more for what is basically commercial funding than they would for a primary residence? You are undertaking this for profit, and they want a piece of the action.

My reasons for this stance are selfish, tight lending and high arrangement fees stops anybody with £2 in their pocket (though I appreciate that is not you) competing for btl properties.

I am surprised though that only one lender would offer you the funding. Since you have a healthy 25% deposit why have you had such an issue?

Lastly have you thought about just buying the property as a 'second home'?

Neanderthal

iTrader: (6)

That's interesting to know although might not work for us as my wife only works part time now (doesn't need to cause my business is doing ok) so her income is a lot less than when we arranged the mortgage 5 years ago.

Neanderthal

iTrader: (6)

Spooky, but this morning we had a letter from the Nationwide letting us know our mortgage deal is almost at an end. When it does we switch to their BMR rate which is never more than 2% above the Bank Of England interest rate.
The letter urged us to consider having a new deal from them with a £400 cashback incentive.
Urrrm I think I'll just let it revert from our fixed rate of 5.4% to 2.5% thanks, and I won't have to prove earnings etc.

Gear Head

iTrader: (2)

Hang on, you can't prove that you can repay the debt and you still don't understand why they won't lend?

And people wonder why we got in such a mess in the first place!

Neanderthal

iTrader: (6)

Me? I can prove what I earn of course but I don't want the hassle of having to jump through the hoops that the mortgage company would want me to.
Look at Kev's post, he had 3 years accounts yet it was easier for him to tell them he was unemployed than to get a mortgage being self employed?!