Nightmare mortgage situation

[EN2016]

Hi.


Here is a bit of back ground info on my self;

I am self employed and have been since Nov 2012, until last August I was a sole trader and I have three years SA302 to show for that.

I am now a LTD company and will have my end of year account at the end of August and a projection (99% accurate) as of tomorrow.

Last month I arranged a mortgage with Yorkshire building society and it was approved along with my girlfriend who is in full time employment, they said they would use my last three years SA302 for the mortgage and next step was to put an offer in as I have my mortgage in principal.

Fast forward until today when I have put a mortgage offer in on a property and been accepted, I ring Yorkshire up to get the ball rolling and was told I am out of there criteria and it has to be checked by an underwriter once I submit my projection figures. To say I am P1ssed off is an understatement, before this they were easy going and told me everything is going as planned.

Is there any members on here who can point me in the direction of a company who will take three years SA302 and a projection which will be 99% accurate as my first years account get filed on the 31st August.

The business is still the same line of work, literally no change other than I have to go LTD.

A mortgage advisor would be great however putting a 10% deposit down plus all other fees I dont have much left!


Thanks in advance

[UpTheIron]

Calling Sarnie!!! Another one for you

[nyt]

Can you get this year's figures to your accountant now so that come the 31st it won't be a 'projection' it'll be an actual return.
So long as you don't do ant invoicing fir the next 2 weeks that should be ok.

I'm sure that someone more knowledgable will be along in a moment.

[Jockman]

EN2016 said:

Hi.


Here is a bit of back ground info on my self;

I am self employed and have been since Nov 2012, until last August I was a sole trader and I have three years SA302 to show for that.

I am now a LTD company and will have my end of year account at the end of August and a projection (99% accurate) as of tomorrow.

Last month I arranged a mortgage with Yorkshire building society and it was approved along with my girlfriend who is in full time employment, they said they would use my last three years SA302 for the mortgage and next step was to put an offer in as I have my mortgage in principal.

Fast forward until today when I have put a mortgage offer in on a property and been accepted, I ring Yorkshire up to get the ball rolling and was told I am out of there criteria and it has to be checked by an underwriter once I submit my projection figures. To say I am P1ssed off is an understatement, before this they were easy going and told me everything is going as planned.

Is there any members on here who can point me in the direction of a company who will take three years SA302 and a projection which will be 99% accurate as my first years account get filed on the 31st August.

The business is still the same line of work, literally no change other than I have to go LTD.

A mortgage advisor would be great however putting a 10% deposit down plus all other fees I dont have much left!


Thanks in advance

Sarnie's yer man.

Not sure why your business format is appropriate - an SA302 is what it is. I was regarded as self employed by Halifax years ago because I owned more than 25% of my LTD Co.

I recently remortgaged and they wanted just 3 years SA302 and they did an average of the 3.

Has anything else changed on the application? LTV for example?

Mortgage brokers tend to get paid by the product provider, not you???

[Jockman]

PS - look down the right hand column of the Finance forum - you'll see Sarnie, click on him then click on send me an email above his poser car.

If he's not getting his nails done he will help you out

[EN2016]

My accountant cant file this years returns until the 31st August unfortunately.

Application is virtually the same, LTV is the same. The only difference is we want to borrow more than the initial mortgage in principal but still well within the limit they will offer.

I will contact Sarnie, thanks every one

[red_slr]

Something defo not right. Banks generally ask for SA302s rather than company returns. Its your income that matters.

I went through this with YBS last year FWIW. They requested SA302 then they requested business bank statements and then lastly they requested the accountant who does our returns verify our earnings.

[EN2016]

The problem they have is the LTD company isn't a year old just yet. Even though I have 3 years SA302's it will have to be looked at. The company hasn't changed since starting, still the same trade but better figures each year.

Basically my next step is to give them my figure so far for the LTD company accounts and then perform a credit check which will be referred then closely looked at.

My other worry is that it's declined and then I have to start again and do more credit checks!

[mjb1]

Have you done your 2015/16 tax return yet? If so, have you provided your SA302 for that year, or just the previous years? That would show your sole trader income til last August, and any PAYE and dividends taken before April this year.

[Jockman]

MMR has really tightened up on available funds. Proposers are looking for as much info as possible to give to their omnipotent underwriters.

[EN2016]

Yes I have my most recent SA302 which shows various figures including dividends as it over laps when I went to a LTD company.

My actual figures from being a LTD company will be about 20% higher than the 'income received' on the SA302.

[westberks]

Yorkshire (& their broker brand Accord) can be a real PITA. Other lenders are more sympathetic to the s/e to Ltd switch. Being at 90% does leave you subject to major underwriting scrutiny.

We had an offer issued by them in 5 days this week after I'd warned the client it would take much longer expecting normal aggro.

[Sarnie]

EN2016 said:

Hi.


Here is a bit of back ground info on my self;

I am self employed and have been since Nov 2012, until last August I was a sole trader and I have three years SA302 to show for that.

I am now a LTD company and will have my end of year account at the end of August and a projection (99% accurate) as of tomorrow.

Last month I arranged a mortgage with Yorkshire building society and it was approved along with my girlfriend who is in full time employment, they said they would use my last three years SA302 for the mortgage and next step was to put an offer in as I have my mortgage in principal.

Fast forward until today when I have put a mortgage offer in on a property and been accepted, I ring Yorkshire up to get the ball rolling and was told I am out of there criteria and it has to be checked by an underwriter once I submit my projection figures. To say I am P1ssed off is an understatement, before this they were easy going and told me everything is going as planned.

Is there any members on here who can point me in the direction of a company who will take three years SA302 and a projection which will be 99% accurate as my first years account get filed on the 31st August.

The business is still the same line of work, literally no change other than I have to go LTD.

A mortgage advisor would be great however putting a 10% deposit down plus all other fees I dont have much left!


Thanks in advance

The issue here is that whilst to you, the business has not changed, to the lender and their criteria, it has changed significantly. They will refer to their handbook and it will say "Limited Company = Evidence Required = 2/3 years salary & dividend figures" or something similar. As you've only been trading via the Ltd company a year, you can't satisfy this requirement and your application will be "referred" which means that its passed to a human underwriter and you are at their discretion basically. They will consider the details of the application but if the LTV is high, loan amount is near the maximum they would normally lend and there are other facets of your application that makes it risky for them, you may have a problem.

As a wider issue, this highlights how worthless an AIP is, it really means NOTHING. I have so many people coming to me want to get an AIP before even looking at properties but it's a waste of time until you have everything to hand to ensure that the lender you are getting the AIP from will actually lend when the time comes......I could get a client an AIP for a £5m mortgage today, if he tells me his income is £1m p/a, for example. But, it will all quickly unravel if the documents provided for the full application don't match the details given for the AIP.

It also highlights the pitfalls of "self advising"...if the OP had contacted me or any other advisor, a decent Broker would have identified that this was going to be an issue, and ensured that the lender that the AIP was done with, was accepting of the current circumstances. Comparison sites have a lot to answer for, all they are, are just lists of rates......they can't give advice or impart years of experience, which would have helped the OP out in this instance.

OP, if YBS don't want to play ball, feel free to drop me a line, always happy to chat, good luck!

[EN2016]

Thanks again for the replies.

When I initially spoke to Yorkshire they were just going to use my three years SA302, until speaking to them yesterday and they actually admitted there advisor had made a mistake and should not have done that. Very frustrating.

I kind of have a feeling that I wont be accepted from them and I am thinking is it worth doing another credit check which I know will be referred and that have to start off else where again.

Sarnie - Have you seen any cases like this, do you think I realistically can get a mortgage from somewhere?

[Sarnie]

EN2016 said:

Thanks again for the replies.

When I initially spoke to Yorkshire they were just going to use my three years SA302, until speaking to them yesterday and they actually admitted there advisor had made a mistake and should not have done that. Very frustrating.

I kind of have a feeling that I wont be accepted from them and I am thinking is it worth doing another credit check which I know will be referred and that have to start off else where again.

Sarnie - Have you seen any cases like this, do you think I realistically can get a mortgage from somewhere?

Seen lots of cases like this and yes, there will be lenders who will view this pragmatically and lend to you.

I can't say what decision YBS will come to......you may get a sensible underwriter who shows discretion or you may get a jobsworth who just quotes the lending criteria...

Good luck with it, happy to help if they play silly buggers

[EN2016]

Thanks for the quick reply.

I will give it a shot with them and if all goes pete tong I will be in touch. Cheers