Process after getting an mortgage approval in principle

[highfive]

Hello all,

I am looking for some urgent advice. I have been approved by a high street bank for a mortgage of £180,000. I have just recieved the mortgage approval in principle certificate for the same via post. When I submitted my information to the broker, I have them my gross earnings which are £37500. Now this includes overtime and benefits/perks. My payslips can only account for £28000 and about £2800 of overtime which was paid end of last year/early this year. They have asked for payslips and bank statements for the last 3 months. The rest of travel and accomodation reimbursements and some bonus does not show up in my payslip/bank statements. Now that I have the approval in principle will the bank do further checks? I am putting down a 30-35% deposit for the property which is another reason I believe I have been approved as my credit score is low. I never have really built one to be honest and had some arrears in the past (3-4 years ago) which are all settled now. I am worried if the amounts on my payslip do not tally with the bank statement will I be refused? Also does the bank need the same bank statements where my salary goes into? Lastly, what checks are done once the bank has agreed for a mortgage in principle? Any help in this matter will be much appreicated. Thank you in advance!

[highfive]

Originally Posted by highfive

Hello all,

I am looking for some urgent advice. I have been approved by a high street bank for a mortgage of £180,000. I have just recieved the mortgage approval in principle certificate for the same via post. When I submitted my information to the broker, I have them my gross earnings which are £37500. Now this includes overtime and benefits/perks. My payslips can only account for £28000 and about £2800 of overtime which was paid end of last year/early this year. They have asked for payslips and bank statements for the last 3 months. The rest of travel and accomodation reimbursements and some bonus does not show up in my payslip/bank statements. Now that I have the approval in principle will the bank do further checks? I am putting down a 30-35% deposit for the property which is another reason I believe I have been approved as my credit score is low. I never have really built one to be honest and had some arrears in the past (3-4 years ago) which are all settled now. I am worried if the amounts on my payslip do not tally with the bank statement will I be refused? Also does the bank need the same bank statements where my salary goes into? Lastly, what checks are done once the bank has agreed for a mortgage in principle? Any help in this matter will be much appreicated. Thank you in advance!

More info: This is a fast track mortgage which has been accepted in principle

[Dan S]

Hi HighFive

I'm sorry to hear you're concerned, and understandably so. This is certainly something you need to sort out BEFORE you go house hunting. The last thing you want is to find the home of your dreams only to find you can't get finance.

It terms of bonuses and overtime, for the broad inclusion and exclusion check out the HOW MUCH CAN YOU BORROW section of this page...

Where To Start - First Time Buyer Guru

Certainly the best thing you need to do is actually go and speak to a human being at the mortgage lender you got the decision in principle from. The last thing you want is a computer system deciding your fate. It should help that you're borrowing at a fairly low LTV, but you mustn't sweep this under the carpet. It's incredibly frustrating that gone are the days of sitting down with your local bank manger!

Best of luck

Dan S

[highfive]

Originally Posted by Dan S

Hi HighFive

I'm sorry to hear you're concerned, and understandably so. This is certainly something you need to sort out BEFORE you go house hunting. The last thing you want is to find the home of your dreams only to find you can't get finance.

It terms of bonuses and overtime, for the broad inclusion and exclusion check out the HOW MUCH CAN YOU BORROW section of this page...


Certainly the best thing you need to do is actually go and speak to a human being at the mortgage lender you got the decision in principle from. The last thing you want is a computer system deciding your fate. It should help that you're borrowing at a fairly low LTV, but you mustn't sweep this under the carpet. It's incredibly frustrating that gone are the days of sitting down with your local bank manger!

Best of luck

Dan S

Thanks for your time Dan. I have applied in person with my mortgage adviser. I have been approved for a fast track mortgage but he did not take any proofs of income or statements from me. Now that I have the certificate of this approval he has asked me to come down with my payslips and statements. He said it would be just for his records and he would just keep a photocopy after seeing the originals. My query is once the fast track mortgage has been approved can the decision change? Will he pass my documents to the bank or is it just for his records. If he spots the gross which is less will he refuse my application? He mentioned there would be no further credit checks and all is done but I am still quite worried of now giving him documents which will show a different amount from what I gave him on my first visit. Please also enlighten me on what is a fast track mortgage exactly. Thank you

[ComareTheMortgageMarket]

I think you need to tell the broker your true earnings really. the bank may do further checks as remember at 'approval in principal' stage it is only an automated system that is doing the checks. After a real person picks up and checks the full application they can request whatever they like. Providing false information will get your application rejected and you will lose any fees that have been paid. However, you may be worrying unnecessarily as you may be able to evidence the additional income via invoices etc and this may be ok to be included in your gross income as previously stated.

[Dan S]

It's certainly a risk, but whatever happens just remember the worst that can happen is you'll get turned down. Certainly not an ideal situation.

[ComareTheMortgageMarket]

Plus, just give an adviser a breakdown of your actual wages and there may be lenders that will take 100% off all the additional money that you get. Its always best to tell the adviser the full story & they will know which lender to place business with.