I'm employed, fiancee is self-employed with 5 years "unaudited" accounts...

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Comments

  • Timmne wrote: »
    Unaudited accounts are the norm for small businesses; unless your fianc!e is turning over many hundreds of thousands each year then I doubt an accountant would want to audit them- I certainly wouldn't. She can request an audit whatever the weather but they are not quick and cost anywhere from a couple of grand and that's for a very basic one!

    Essentially, don't be put off by the unaudited bit, they'll be the same as 99% of small business' accounts.

    Thank you for this advise.

    I have been self-employed (sole trader) for 5 years and have unaudited accounts as well.

    I applied a FTB mortgage with NatWest on the 08th Oct but did not have any update until last thursday 29th Oct. They did not ask for the "audit" accounts but only ask me if I have any outstanding balances on credit cards or loan and if have any ccjs or defaults.

    I am worried that the next thing they will ask is the proof of audit accounts because this application has now been taken so long to approve.
  • wj209980
    wj209980 Posts: 40 Forumite
    Thanks for this info - maybe they won't request audited accounts from us then.

    Whatever the case I'll update here tomorrow afternoon when I get back from the mortgage appointment.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    The accounts you have submitted via the accountant will be fine :)

    So you can relax about the accounts situation - if the lender asks for the SA302s, then you can request these from HMRC, but the accounts should suffice.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • wj209980
    wj209980 Posts: 40 Forumite
    herbiesjp wrote: »
    The accounts you have submitted via the accountant will be fine :)

    So you can relax about the accounts situation - if the lender asks for the SA302s, then you can request these from HMRC, but the accounts should suffice.

    Thank you for your reply!! Now I do feel more relaxed!

    And, like you say, if they ask for the SA302s then I guess it isn't the end of the world - I can request these from the HMRC and pass them on.

    Thanks again :D
  • wj209980
    wj209980 Posts: 40 Forumite
    Hi

    Just to update you on the mortgage appointment today...

    The session went smoothly. The mortgage manager never questioned the fact that the accounts were "unaudited". However, when it came to give us a decision (based on the computer output) we were told it had been referred to the underwriters becuase:

    1) My finacee is self employed, and the self employed will always get referred and

    2) The amount we need to borrow is close to 90% LTV (it is actually around 86%, and the product we were going for allows 90%).

    We were told that there was no question over affordability, and the referral was nothing to worry about becuase it was simply due to the above two points. We were told we should hear the result either Thursday or Friday.

    I want to feel okay, but there is still that doubt in my mind. Has anybody had similar experiences, or can anyone give their thoughts on whether they think we will be okay?
  • wj209980 wrote: »
    Hi

    Just to update you on the mortgage appointment today...

    The session went smoothly. The mortgage manager never questioned the fact that the accounts were "unaudited". However, when it came to give us a decision (based on the computer output) we were told it had been referred to the underwriters becuase:

    1) My finacee is self employed, and the self employed will always get referred and

    2) The amount we need to borrow is close to 90% LTV (it is actually around 86%, and the product we were going for allows 90%).

    We were told that there was no question over affordability, and the referral was nothing to worry about becuase it was simply due to the above two points. We were told we should hear the result either Thursday or Friday.

    I want to feel okay, but there is still that doubt in my mind. Has anybody had similar experiences, or can anyone give their thoughts on whether they think we will be okay?

    I think I have a situation similar like you. I am also self-employed, need to borrow 80% LTV. I applied directly through NatWest on the 08/10. I have passed the credit check on that day but my application until now is still with the UNDERWRITERS... :mad:

    I don't think I can wait any longer so apply for Abbey yesterday and all they need are 2yrs signed accounts. Hopefully it will be quicker than NatWest.

    I think most of the banks just got a thing with Self-Employed. That is so unfair.

    Anyway, good luck with your application!
  • dunstonh
    dunstonh Posts: 116,040
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    "if self employed, 3 years of audited accounts".

    Thats a stupid request. Self employed dont need and are not required to get audited accounts. That is for limited companies. and plcs. There probably isnt a self employed person out there with audited accounts.

    The problem is that many front line bank staff dont know what unaudited actually means.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • wj209980
    wj209980 Posts: 40 Forumite
    Hi all

    Just thought i'd update you on the outcome...

    I had a call today around 4pm to inform me that the mortgage application has been approved :D:D:D:D:D:D

    Not once was the fact the accounts were "unaudited" questioned. And not once have I been asked for anything other than the yearly accounts I provided to the mortgage manager (no tax returns, or SA302's, just the accounts). Yes the application was referred to the underwriters, but this is apparantly common practice when one of the applicants is self employed.

    I'd just like to say thank you to everyone for their comments, and helping put my mind at rest in the lead up to my mortgage appointment.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    There you go ! :)

    Good luck on the house buying journey
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • wj209980
    wj209980 Posts: 40 Forumite
    herbiesjp wrote: »
    There you go ! :)

    Good luck on the house buying journey

    thank you :beer:
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