Business Plan - Submission for Mortgage application
Discussion
I have been looking for a while for a new place for me+wife+kids.
we have found one and have applied for a joint mortgage, i can provide my income statement as in payslips for the last year with current employer, upto 4 years with previous. so i am in the clear.
The wife is self employed and has recently taken on a lot more work now moving back down to surrey and income has rapidly increased. The wife has been trading for 18 months as an Qualified Accounting Technician/Taxation Technician. I have now managed to secure her a long term 3 year contract with a medium sized firm locally. so now can plan ahead for a fixed interest mortgage for the next 3 years.
But the mortgage lender is asking for a business plan. I have no problem writing one as we wrote one 2 years ago when forming the comapny but it has not been rewritten since other than a by updating the progress on long term goals and imidiate actions for the year to come.
question is what would i need to submit to prove that the company/wife do have a future and can support the income?
Thanks
steve
we have found one and have applied for a joint mortgage, i can provide my income statement as in payslips for the last year with current employer, upto 4 years with previous. so i am in the clear.
The wife is self employed and has recently taken on a lot more work now moving back down to surrey and income has rapidly increased. The wife has been trading for 18 months as an Qualified Accounting Technician/Taxation Technician. I have now managed to secure her a long term 3 year contract with a medium sized firm locally. so now can plan ahead for a fixed interest mortgage for the next 3 years.
But the mortgage lender is asking for a business plan. I have no problem writing one as we wrote one 2 years ago when forming the comapny but it has not been rewritten since other than a by updating the progress on long term goals and imidiate actions for the year to come.
question is what would i need to submit to prove that the company/wife do have a future and can support the income?
Thanks
steve
self cert mortgages with decent interest rates you need to provide 3 years tax returns
I know what my wife can do, but its winning over the lender as there seems to be a crack down on self cert mortgages at the moment where people are commiting mortgage fraud!
All of our outgoings each month can be covered by my salary including the projected mortgage cost. we are currently renting and paying £100 less on rent than the predicted mortgage cost. I have paid this for the past 12 month on my own salary and the wife has been putting away the cash to increase our deposit. So if worst comes to worse then we will just go back to life as it is now with one car and less holidays.
I know what my wife can do, but its winning over the lender as there seems to be a crack down on self cert mortgages at the moment where people are commiting mortgage fraud!
All of our outgoings each month can be covered by my salary including the projected mortgage cost. we are currently renting and paying £100 less on rent than the predicted mortgage cost. I have paid this for the past 12 month on my own salary and the wife has been putting away the cash to increase our deposit. So if worst comes to worse then we will just go back to life as it is now with one car and less holidays.
Edited by stevieb on Wednesday 13th September 12:53
Might be worth speaking to these guys: www.contractorfinancials.com, they sorted me out quickly and easily with little fuss and a great rate.
stevieb said:
self cert mortgages with decent interest rates you need to provide 3 years tax returns
absolutely not matey.
self cert mortgages are specifically designed to do away with this requirement. even non-verification mortgages only check 50%ish of the apps that come their way, and if you''ve a good credit score then it's very unlikely they'll ask for accounts
stevieb said:
BoS - Bank of scotland (Halifax)???
we have a quote for around 4.99 fixed for 5 years which i would like if this fails then i will change broker..
we have a quote for around 4.99 fixed for 5 years which i would like if this fails then i will change broker..
very odd. a cursory look at the BoS website reveals no 5 year fixed rates at all! wonder if that's correct or not...my eyes are deceiving me at this late hour...
...either way, my sourcing system throws up 5.49% from the Abbey fixed for 5 years with no ext. ERC - just for your info
self cert wise that is....
for 3 years there is much more choice - 4.99% from Accord Mortgages
HTH
minimax said:
stevieb said:
self cert mortgages with decent interest rates you need to provide 3 years tax returns
absolutely not matey.
self cert mortgages are specifically designed to do away with this requirement. even non-verification mortgages only check 50%ish of the apps that come their way, and if you''ve a good credit score then it's very unlikely they'll ask for accounts
Thanks for that, I am going through C&G as both the wife and my back accounts are with Lloyds. seem to be fair so far but have asked for a business plan. Credit rating wise we have a good repayment history for the past 4 years with only one payment being late as the compeny did not setup the direct debit correctly. but i have check my file and it does not show as a late payment all green with no warnings. on the electrol role etc. we are looking for a 270k mortgage and have over 30% deposit.
right, gotcha now - they're asking for a business plan because your wife's only been in business for 18 months, this is normal and in fact represents a slight departure from the norm (probably because you bank with them) as they usually require 2 years accounts and a projection (business plan)
I was knackered last night and didn't see the important parts of your first quote
as an aside, I regard C&G as a spot on mortgage lender...usually got some good rates but more importantly, all their processing is done at your local branch...so if you need anything you just get on the phone and you speak to the same person (or one of maybe 5 in total) that you spoke to and they go to a filing cabinet, get out an actual file of documents for your client and sort it out there and then
- they're asking for a business plan because your wife's only been in business for 18 months, this is normal and in fact represents a slight departure from the norm (probably because you bank with them) as they usually require 2 years accounts and a projection (business plan) I was knackered last night and didn't see the important parts of your first quote
as an aside, I regard C&G as a spot on mortgage lender...usually got some good rates but more importantly, all their processing is done at your local branch...so if you need anything you just get on the phone and you speak to the same person (or one of maybe 5 in total) that you spoke to and they go to a filing cabinet, get out an actual file of documents for your client and sort it out there and then
Gassing Station | Business | Top of Page | What's New | My Stuff