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Just want to whinge....

post #1 of 23
Thread Starter 
Well, today was going great... my Interior Design course arrived and it looks fantastic - can't wait to get started.... yep, the day was going good until around 2:00pm, when I got a call from hubby to say our mortgage lender has now decided not to lend to us What really bugs me though is that we were right in the final stages - just waiting to sign the mortgage papers and exchange contracts and that would have been it!! over!! But noooo.... they now decide that they don't want to lend to us cos my husband is self employed and they don't understand his Tax form?!?!!??! I mean, we explained this all to them before they agreed to the mortgage, we evn sent them loads of papers which prove hubbys income?!?! So why all of a sudden have they decided to back out?!? Now we have to start all over again with another company.... the only other company who will happily lend to self employed people want a 10% deposit instead of the 5% average.... which is do-able but it means we won't have hardly any money left to do the house up.... this really sucks - we were supposed to be moving in about 3 weeks, now we have to wait about another 6 weeks.....
post #2 of 23
Oh my gosh Rhea, the exact same thing happened to us! We were lucky though because we didn't get as far as the closing. My husband is self employed and the mortgage lender denied us right off the bat because of how his income is stated on his taxes!
post #3 of 23
You can appeal the decision Rhea. It is time-consuming, but it can be done, and surprisingly, not many people take the time to fight for their cause. It has to be done in writing (at least here anyway) and the buyer has 30 days to prove their case.
post #4 of 23
I'm sorry, that's terribly frustrating!

I have no idea how it works in the UK, but maybe you can find an independent broker instead of working with the banks etc. yourself. That way you only do the paperwork once and he shops it around to the lenders until he gets a match. Just an idea.

Hope you find a new bank soon!
post #5 of 23
We did use an independent mortgage company (i.e. we didn't go through a bank). We didn't get as far as you did Rhea because when we told them my husband was self employed they wanted to do a confirmed approval up front instead of the "pre-approval" Turns out that here in the states the lenders would use the income as is stated before taxes for someone like me who has a "regular" job. But for someone like my husband, who is self employed, they look at the income after deductions and what not. It's kinda like they discriminate against people who are self-employed and if you are self-employed you better be making at least $60,000 a year if you want to buy a home.

It's funny you know, my husband could do his taxes legally in two ways: claim his deductions and have to pay very little in taxes or not claim his dedcutions and have to pay a lot in taxes. If he claims the deductions the mortgage company see's the income as pitiful but if he doesn't then he owes the IRS a lot of money!
post #6 of 23
Sorry, wasn't trying to make this about me. I just wanted to let Rhea know that I really feel for her and understand what she is going through.
post #7 of 23
Thread Starter 
Sabra!! Tell me about it!! Its ridiculous!! You just can't win!! And thanks Hissy and Sunlion for your suggestions, I never knew you could appeal the decision Hissy, thanks for informing me!! (funny how the banks don't tell you that themselves huh??) but I think I'd rather go with this other company now, I mean we might appeal it and they still turn it down again, in which case that would put us even further back, I think if we hadn't been so far along in the process I'd have appealed, but as it is we are the ones holding everything up. Sunlion, we have gone through a Mortage advisor ho approaches all the banks etc to see if they can do it, they said they could/would so went with them, but now this has happened he has to find us another one - which thankfully he has, it just means we have to start all over again and pay for searches/surveys again.
post #8 of 23
They discriminate in so many ways with people who are self-employed! Just try to find decent medical and dental insurance that you can actually afford and see how many hoops they want you to dance through!
post #9 of 23
So the broker doesn't order the surveys etc.? How much easier if all that was his property instead of the banks . . .
post #10 of 23
Thread Starter 
Nope its the actual lender who does the searches/surveys, and the stupidest thing is that we haven't even HAD the survey done yet!! The searches are all completed and paid for, as is the survey, but they haven't done it yet?!!! Im definately going to try and get that money back - £150 (around $173 I think) that I could use on something else!!
And Sabra & Hissy,- you're soooo right, they discriminate terribly agaisnt Self Employed people, its been a joke even trying to get credit over the years!!
post #11 of 23
You know how upset I am for you, Rhea, but please, if you don't mind, what is a "whinge?"
Now, if I don't have to duck while you try to aim at me across the pond, we will have to have a great party over at the Debra Myers site when the deal finally goes through! After all of this hassle, you deserve it!
post #12 of 23
Luckily I have a "regular" job and hubby is on my insurance. We are going to try again this time next year so that we can also add my income; we can't do that right now because I haven't been in CCC long enough. But, we had to work with hubby's taxes too. He claimed some, not all, of his deductions so he will owe the IRS about $3,000. The mortgage company said that by doing this that this time next year we will definitely be approved. (If he didn't claim any deductions we would have to pay just over $6,000!!!!!)
post #13 of 23
I believe Rhea means whine.......but I also believe you knew that and are hasseling her! You hassle people? No way! LOL Of course whinge is also the sound a rock makes before leaving a slingshot!
post #14 of 23
. . . But it's not a typo, it's an English word (rather than an American one). Can't help it, I watch too much BBCAmerica . . .

Was is Winston Churchill who said the US and the UK are "two countries separated by a common language"?
post #15 of 23
Thread Starter 
Yeah!! Thanks Hissy!!! That Jeanie lady is ALWAYS hasseling me!!
Yep - its as Sunlion said, means the same as whine but I guess is just an "Englishism"

Sabra, we had a right ordeal with paying hubby's tax last year - what a mess!! and it seems we only just got done wit last year and we have to start again already for this year!! They could lend a mortgage to just me, but I'd only be allowed to borrow 3 times my income - so I wouldn't get enough for anywhere anyway!! ack...
post #16 of 23
We had the same problem when we wanted to move from a flat to our house - we both work for our own company and most mortgage lenders didn't want to know.

Luckily we found a bank that will give a mortgage without wanting to know any income details, but only providing you can put down a minimum of 20% deposit. We were lucky enough to have enough equity in the flat to give us the 20%, otherwise we'd never have been able to move.

Organising a house-move has definately got to be one of the most stressful procedures to go through - I've told my fiance that we're staying put for a long, long time (unless we win the lottery that is)

I really hope it all goes through ok Bodlover.
post #17 of 23
Thread Starter 
Thanks Sal... Its funny isn;t it how no-one wants to know when you are self employed and can only put down 5% deposit like everyone else does, but when you can give them more money - suddenly they are able to do it?!?! Im glad we found one that will take 10% because there is no way we could manage 20%!! We'd be sooo broke there'd be no point moving!!
Again thanks
post #18 of 23
Hissy, you're brilliant. Who else would know the sound of a rock leaving a slingshot? Rhea, now you know why I was upset with my father deliberately losing his accent and most Devonshire terms- (except for alumin-i-um and saying the "h" in honor. Of course, we Yanks didn't like it, so we got the "h" out of there. I don't even understand the Queen's English. However, I do understand Robert Burns and the Wee Bairnies cuddle doon at nicht.
More to the point, we had to have a 20% downpayment on our starter home. The home did not meet FHA (Federal Housing Administration) standard, which would have made things much easier. Since we had a lease-purchase agreement,however, we were given credit for quite a bit of that. It's a long, drawn-out process, but well worth it. You'll soon be able to say, "This is OUR new house!"
post #19 of 23
Good luck Rhea! I can't believe that you got this far and now they don't want to give you the loan! You were SO close to the end. I can't imagine what you people who are self-employed (or have hubbies who are) have to go through. I'm glad that hubby and I didn't have any problems when we got the loan for out condo that we bought last December. Let us know how everything turns out.
post #20 of 23
Rhea, so sorry to hear you are going through all this crap right now!! I will keep good thoughts that it will all work out okay for you! Keep us posted!!!
post #21 of 23
If hubby is self-employed I assume he has a company name, etc? Have you investigated buying the house under the company name as a company asset rather than personal property?? Might be worth checking out.
post #22 of 23
Thread Starter 
Thanks for all the comments and suggestions everyone, and KF - I'd never thought of that!??! Good idea though!! However, thismorning I've had a call and its good news, there is a company that will DEFINATELY lend to us - all they need is a letter from my employer to say I've been employed for at least 6 months (which I have ...) and a letter from Hubby's accountant to say his business has been up and running for over a year - which it has..... apparently we have some forms to fill out and return tonight, and then we should be able to sign next week, so thankfully in the end, it doesn't look like it;s going to put us back that much.... phew....
post #23 of 23
What a relief that must be! Great!
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