Random audit check - Halifax mortgage - Contractor UK Bulletin Board

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Originally posted by sk100 View Post

I was told by my broker that my application has been randomly chosen for a spot check. Does anyone have experience of this or know what they are checking given that Halifax is supposed to be contractor friendly?

Google is a really powerful tool. Shame people don't use it..

applied to Nationwide Building Society for a mortgage at the end of January. They requested an Accountants Certificate stating the 'net profit before tax' figures for the last two years. The Accountants Certificate was completed and sent off to them and the mortgage was approved at the start of February. Things proceeded nicely and completion was set for today.

Last Tuesday, Nationwide advised our mortgage broker that they were still awaiting some outstanding information. This was supposedly identified by a random audit check by head office. However they also confirmed that this information was never actually requested. The additional information was however hastily obtained and this included some SA302s.

Despite a reconciliation being provided to the Nationwide of the figures shown on Accountants Certificates and the 'profit from self-employment' figure as shown on the SA302 forms, i.e. the tax adjustments, the Nationwide withdrew the mortgage offer as the figures were not the same. They would not entertain any comments about the tax adjustments and trying to speak to the underwriting department was impossible as they 'do not have a customer facing role'.

Clearly if there is any sort of capital allowance claim or any other tax adjustment, the figures will be different between the Accountants Certificate and the SA302s. Also if you provide any sort of tax advice which reduces your clients tax liability, this will in effect reduce their level of income and reduce the amount of money they can borrow on a mortgage, according to this method. Unfortunately the person that earns £50k a year and is entitled to the AIA amount of £50k, will have income of nil!

Needless to say we are now officially in the complaints process at Nationwide, which will be probably be as ridiculous as their method of calculating what the income was!

Has anybody had a similar experience or can provide any recommendations about what to do next - apart from going to a different mortgage provider!

Thanks

Randon Audit check - MoneySavingExpert.com Forums

Lenders must confirm their lending criteria are met. They have to check legislation and sometimes they like to make a random/special check on your rental and your income (have some wage slips ready).

Hi all,

I am hoping to get some advice. I am a first time buyer and have 15% deposit. I recently applied for a mortgage, the AIP and full application was accepted, but the final agreement was declined.

It was declined on the basis that my payslip did not match the payments on my bank statement. NOTE: They also performed a random audit on my account (FSA requirement?).

I am a consultant and have been working in France for the past 7 months. As it is over a 6 month period I am obliged to pay French taxes. Long story short, my company outsources its payroll to a Swiss firm.

When this payroll company sends out my payslips it does not include any extra expense claims, however, this is usually added on top of my monthly salary payment. This is where the discrepancy exists. For example, if my net salary is £1500, and I had £300 worth of expense claims, then my bank statement would show a payment of £1800, yet my payslip will show £1500.

For this reason I have been declined. They also told me that when they visited the payroll company's website, it was not working properly! So they suspect something funny is going on.

It is completely legitimate and I have not been given a chance to prove it. They have dragged this on for just over 2 weeks, asking me for P60, contract of employment (to prove I am not sub-contracting), etc. I have given everything and they are holding this against me.

I am extremely frustrated as you can imagine, I am upset with my company for using, what appears to be, a lousy payroll firm. I am also upset I will have a marker on my credit file.

How should/could I proceed? Is there any way to appeal this decision?

Any help/advice would be greatly appreciated.

Thanks in advance