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Why are Natwest stalling on our mortgage application?

Last post Wed, Oct 12 2011, 6:46 PM by Delabrum. 12 replies.
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  •  Wed, Oct 12 2011, 6:46 PM

    Re: Why are Natwest stalling on our mortgage application?

    I must admit, while she was very helpful and friendly I got the impression she was a bit dozy during the time we were there :) Yes, I will call by the end of the week for sure. Running another credit/affordability check won't pose a problem. Thanks for your advice!
    • Post Points: 5
  •  Wed, Oct 12 2011, 6:31 PM

    Re: Why are Natwest stalling on our mortgage application?

    Yes, give the adviser a call and explain the situation. You are legally obliged to inform the lender if anything changes within your income or circumstances and this may be a significant change. It may put things on hold but if it means that you can still evidence the income you are claiming then this may be the best thing.

    Just be aware that if things do go a bit slowly you may need to take another credit and affordability check. depending on the lender will depend on whether it is valid for 30/60/90 days

    I am surpised that your adviser did not pick up that you accountant is a chartered accountant or not, this is a basic fundamental question to ask someone who is self employed so that you know the route to follow in order to evidence the income that is going to pay for the mortgage.....thinking about it, if you applied directly through a bank then it explains alot....as I said - rarely qualified and often just a monkey dressed in a suit to give you mortgage products.

    Good Luck

    • Post Points: 20
  •  Wed, Oct 12 2011, 6:06 PM

    Re: Why are Natwest stalling on our mortgage application?

    My year ends in line with the tax year end i.e. April 5th, so I need my taxes filed by January 31st. My accountant is going to file my taxes as soon as he returns and when he does I'll request an SA302. I don't necessarily mind if it slows it down as neither me or my dad are in a huge rush, I just wish I knew if we had been approved pending these documents! Is it worth calling my advisor tomorow if we haven't been contacted and ask if they need anything else?

    Cheers.

    • Post Points: 20
  •  Wed, Oct 12 2011, 5:58 PM

    Re: Why are Natwest stalling on our mortgage application?

    Yes, I understand what you mean now, but it would really depend on when you are due to file your taxes. When is your tax year end? Some people use 31st Jan some use April. Either way it means you are fgoing to have a bit oif a wait. Speak to your accountant regarding this.
    • Post Points: 20
  •  Wed, Oct 12 2011, 4:59 PM

    Re: Why are Natwest stalling on our mortgage application?

    I appreciate that. I don't think I explained myself clearly in the previous post. I started trading in September 2007, but in my first year and a half I only made a little money. As of about spring 2009 I started to make decent money. Therefore, as Natwest take an average of your last 2 years profits, it was a healthy figure as from spring 2009 to now I've been doing well. But if I give Natwest SA302's for the years ending 2009 and 2010, it's going to bring the average way down and I probably won't qualify. Therefore, should I file my taxes for 2010/11 asap in order to be able to produce an SA302 for the tax year just gone as well as the one I have for 2009/10 tax year? Hope this makes sense!
    • Post Points: 20
  •  Wed, Oct 12 2011, 4:51 PM

    Re: Why are Natwest stalling on our mortgage application?

    If you have the 2009 and 2010 SA302's then this is most likely all they will ask for.

    I am not sure how it would work if you decided to submit accounts tomorrow, this is not my area of expertise, but I imagine it would still take a few weeks for the new SA302 to be produced

    • Post Points: 20
  •  Wed, Oct 12 2011, 4:38 PM

    Re: Why are Natwest stalling on our mortgage application?

    I have an SA302 for the tax year ending April 2010. I think I will have to have my accountant file my taxes for the year ending April 2011 asap then. If I understand what you're saying correctly, I could provide SA302's for tax years ending April 2010 and April 2009? I only started my business 4 years ago and for the first 2 years I made peanuts, it's only in the last 2 or so years that I've started making proper money, hence I'll need SA302's for 2010 and 2011, not 2010 and 2009 as they take an average of 2 years. Therefore, are SA302's available as soon as I've filed? I.e. could I file my return today and ask for an SA302 tomorrow.

    Complicated!!!!

    • Post Points: 20
  •  Wed, Oct 12 2011, 4:29 PM

    Re: Why are Natwest stalling on our mortgage application?

    If your accountant is not chartered then the lender will not accept an accountants certificate from him as he is technically unqualified to provde one for the lender and this is where they will ask for HMRC documents to back up your income.

    If Natwest have only asked for 2 years accounts then you will need to provide your last 2 submitted years SA302's (2010/2011 accounts do not have to be submitted till 31st Jan 2012) so this will be 2009 and 2010. Hopefully you will have both of these already and can just provide them to Natwest, if you don't then it may be worth getting in contact with your local tax office to send you out a copy. Unfortunately (I found out last week) they cannot provide this docuiment to you if you go to the office in person and they can only post out to you and it can take up to 15 working days :(

    As you guessed, yes this could very easily slow the whole process down by a few weeks.

    • Post Points: 20
  •  Wed, Oct 12 2011, 4:24 PM

    Re: Why are Natwest stalling on our mortgage application?

    I don't think he is a chartered accountant. My dad's been using him for years and told me he's good so I went with him when I started my business 4 years ago. How do I check? Other than asking him I suppose :)

    I have an SA302 for 2009/10 but I haven't filed for 2010/11 yet as my accountant is in the process of doing this for me. Should I get an SA302 as soon as my tax return has been filed for the year just gone?

    So what you are saying is that if he's not chartered it's going to make the whole process slower?

    • Post Points: 20
  •  Wed, Oct 12 2011, 3:53 PM

    Re: Why are Natwest stalling on our mortgage application?

    If your accountant is away till Saturday then this is a very good reason why the lender may not have got something back from him. Is your accountant a Chartered Accountant? If not then you will most likely have to provide your tax submissions and if you have them the SA302 receipts from HMRC for the last couple of years which you may have to request and these can often take a 10-15 days to arrive

    So far as the deposit, if the lenders ask for a proof of the deposit then you will have to provide bank statements showing your side of the deposit, banks can often ask for as much as 6 months bank statements to show the build up of deposit. For your fathers side they would normally just ask for a letter from him addressed to them perosnally outlining they he is "gifting" you the remainder of the deposit and this "gift" will not be repayable either now or at any time in the future. If you can get your dad to word a letter around that then the lender should accept it. make sure it is written addressed directly to the lender or they probably will not accept it

    • Post Points: 20
  •  Wed, Oct 12 2011, 3:24 PM

    Re: Why are Natwest stalling on our mortgage application?

    Thanks for your comprehensive reply. The accountants thing would make sense as my accountant is a sole trader and is on holiday until Saturday. She did ask for all his contact details as well come to think about it, so they'll obviously want to speak to him....

    So what you're saying is if we passed the initial credit score/income checks it's unlikely we'll get turned down? Verifying my income with my accountant shouldn't be a problem as the income figures I gave them are what he has filed for me for the past 2 years. I know we should be patient but every time the phone rings I practically run to answer it :)

    Something I did fail to mention, my dad is giving us the majority of the deposit as a deed of gift from the equity in the house subject to valuation (selling it to us for 120k, he is only taking 110k and we put in 2k of our own cash to make up the 10%). Could this be slowing it down for whatever reason?

    • Post Points: 20
  •  Wed, Oct 12 2011, 3:09 PM

    Re: Why are Natwest stalling on our mortgage application?

    From what you have written in your post I would suggest it is most likely the accountants that have held thing up and just the general speed of underwirting an application nowadays.

    Normally when an application is submitted it can take a day or so to be looked at by an underwriter, they may then apply to your accountant for a certificate of earnings, this may take another day or so to be filled in and returned, this will then join the documents queue which can take up to 2-3 days to be paired up with the application and viewed by an underwriter again. If the underwriter is happy with the application they can then instruct a valuation (if neccessary) which could take another 24 hours before they contact you.

    It is easy to see how an application can take a while to go through. If I was to place a figure on how long it takes me to get my applications from application to formal mortgage offer I would say in excess of 10 days so a week for your application is still within normal timeframes.

    If your wife has residency and the adviser (laugh, banks do not give advice anymore due to liabilities) took a copy of it then this will be noted by the underwirter and will not create an issue. Being on the electoral roll always helps an application but will not generally fail an application.

    Hard as it is to tell yuo when you are a first time buyer, but be patient, let the banks do what they need to do, they are ging to lend you a HUGE wad of money and they want to make sure that they are happy with you as applicants before they do so.

    I always laugh at first time buyers being so eager to get their mortgage and then spend the next 25 years wishing it was gone.

    From what you have said I would just put it down to underwriting queues, if you passed the initial credit and affordability checks then its just a matter of being patient. If you have no answer before early next week I would give them a call and get an update. it may even be that they underwriters want some further documentation but you have not been informed (it wouldn't be the first time)

    Good Luck!

    • Post Points: 20
  •  Wed, Oct 12 2011, 2:42 PM

    Why are Natwest stalling on our mortgage application?

    Hello one and all. My wife and I made a mortgage application last week with Natwest in branch and were told we would be contacted by Tuesday of this week as to whether we had been approved. We still haven't heard anything and it's now Wednesday, so we were wondering why they're stalling? Brief background, we are buying my dad's second home for 120,000. We have a 10% deposit and money to pay solicitors fees, survey etc with 5k left in our savings after paying for everything. We passed the income checks in branch and the advisor ran a credit check in branch and the scores came up fine. I'm self-employed, could they be stalling over verifying my income? Also my wife is American living here with permanent residency so she can't be on the electoral roll. We have a note on her credit file(s) stating the reason why she's not and the advisor also made a photocopy of her passport with the residency stamp to prove she is who she says she is. Could they be getting twitchy over that? As first time buyers we are incredibly anxious about this dreaded wait!

    Thanks in advance.

    • Post Points: 20