Lloyds Mortgages & Income

[elise2000]

Evening

Bit of a long shot, but does anyone know if Lloyds include dividend income as part of their calculations for lending (if the borrowers income is primarily from dividends from their own lts companies).

Many thanks! Merry Xmas!

[Caddyshack]

elise2000 said:

Evening

Bit of a long shot, but does anyone know if Lloyds include dividend income as part of their calculations for lending (if the borrowers income is primarily from dividends from their own lts companies).

Many thanks! Merry Xmas!

If you are taking a divi from your own limited company then yes. Obtain the last 3 yrs tax comps (the old sa302) and corresponding tax year overviews as they will want to see them.

I cannot think of any lender that would not as long as the company is not posting losses.If the turnover and profits are dropping year on year then they are likely to reject. Many lenders are asking if there are any furlough payments or grants on personal or biz stats for last 3 months.

I am a broker.

[elise2000]

Caddyshack said:

If you are taking a divi from your own limited company then yes. Obtain the last 3 yrs tax comps (the old sa302) and corresponding tax year overviews as they will want to see them.

I cannot think of any lender that would not as long as the company is not posting losses.If the turnover and profits are dropping year on year then they are likely to reject. Many lenders are asking if there are any furlough payments or grants on personal or biz stats for last 3 months.

I am a broker.

Grand. Thanks very much. Waiting to hear back from them, and obviously won’t until the new year, so was just after some potential peace of mind!

[Caddyshack]

elise2000 said:

Caddyshack said:

If you are taking a divi from your own limited company then yes. Obtain the last 3 yrs tax comps (the old sa302) and corresponding tax year overviews as they will want to see them.

I cannot think of any lender that would not as long as the company is not posting losses.If the turnover and profits are dropping year on year then they are likely to reject. Many lenders are asking if there are any furlough payments or grants on personal or biz stats for last 3 months.

I am a broker.

Grand. Thanks very much. Waiting to hear back from them, and obviously won’t until the new year, so was just after some potential peace of mind!

Lloyd’s are a bit odd as a lot was cut away post credit crunch but if you get stuck then shoot me a pm as I may know what to challenge them with....not touting for business, just glad to help.

[elise2000]

Caddyshack said:

Lloyd’s are a bit odd as a lot was cut away post credit crunch but if you get stuck then shoot me a pm as I may know what to challenge them with....not touting for business, just glad to help.

Thanks, much appreciated. Already debating them about mortgage length and affordability (as want to keep the same monthly payments I’ve made for the last decade or so but Lloyds want the term to be longer at the new house despite not borrowing any more!)

[Caddyshack]

elise2000 said:

Caddyshack said:

Lloyd’s are a bit odd as a lot was cut away post credit crunch but if you get stuck then shoot me a pm as I may know what to challenge them with....not touting for business, just glad to help.

Thanks, much appreciated. Already debating them about mortgage length and affordability (as want to keep the same monthly payments I’ve made for the last decade or so but Lloyds want the term to be longer at the new house despite not borrowing any more!)

Sounds like they need to massage their affordability calculator, don’t fight it, just add a standing order to make up the payment to what you want as I expect their product will allow 10% overpayments.

[elise2000]

Caddyshack said:

Sounds like they need to massage their affordability calculator, don’t fight it, just add a standing order to make up the payment to what you want as I expect their product will allow 10% overpayments.

Yep, that’s the workaround I had in mind. Just mildly irritated by it! Hopefully the dividend issue will also be fine.

[AF07]

When I did mortgage 2 years ago I found that barely any will include retained profits which imo was a bigger issue.

Virgin were one of the few that will, handy alternative to paying yourself unnecessary dividends.

Edited by AF07 on Saturday 26th December 15:35

[Caddyshack]

AF07 said:

When I did mortgage 2 years ago I found that barely any will include retained profits which imo was a bigger issue.

Virgin were one of the few that will, handy alternative to paying yourself unnecessary dividends.

Edited by AF07 on Saturday 26th December 15:35

Yes, that is correct. Metro Bank are also good with retained profits.

[elise2000]

The answer is yes, Lloyds to consider Dividends to count towards income.

Thanks