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    • neo2020
    • By neo2020 22nd Sep 16, 10:32 AM
    • 8Posts
    • 3Thanks
    neo2020
    Lenders that use 1 year's accounts for SE AND offer 95% LTV mortgages
    • #1
    • 22nd Sep 16, 10:32 AM
    Lenders that use 1 year's accounts for SE AND offer 95% LTV mortgages 22nd Sep 16 at 10:32 AM
    Hi guys,

    A bit of a tricky one and I've got my mortgage broker looking into this as well.

    Which lenders if any are willing to:

    1) Use last year's accounts (me and wife are both self-employed) rather than a 2-3 year average; and
    2) Offer 95% LTV mortgages; and
    3) Would offer a multiplier of 4-4.5

    For background:

    - We both have good credit ratings.
    - The mortgage we are looking for is 190k on a 200k property.
    - We are both SE and joint income is 40-45k
    - Reason we need a lender that uses last year's accounts is that I had a bit of a slow year in 14/15, so a 2-year average would drag us down too much.
    - Repayments are well within affordability on both 25 and 30 year options.

    Thank you very much in advance.
Page 1
    • Thrugelmir
    • By Thrugelmir 22nd Sep 16, 10:56 AM
    • 49,954 Posts
    • 41,615 Thanks
    Thrugelmir
    • #2
    • 22nd Sep 16, 10:56 AM
    • #2
    • 22nd Sep 16, 10:56 AM
    - Reason we need a lender that uses last year's accounts is that I had a bit of a slow year in 14/15, so a 2-year average would drag us down too much.
    Originally posted by neo2020
    Attempting to conceal information will do you no favours. Either to obtain a mortgage or personally.
    A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against a rainy day.
    • neo2020
    • By neo2020 22nd Sep 16, 11:05 AM
    • 8 Posts
    • 3 Thanks
    neo2020
    • #3
    • 22nd Sep 16, 11:05 AM
    • #3
    • 22nd Sep 16, 11:05 AM
    Attempting to conceal information will do you no favours. Either to obtain a mortgage or personally.
    Originally posted by Thrugelmir
    Not sure how you came to the conclusion that we're trying to conceal information.

    From my understanding, all lenders would want to see at least 3 years' accounts, it's just some use a 3 year average to decide your "actual" income, some use a 2 year average and some will go with last year as long as it's higher than previous years.

    In all of these scenarios, they would see accounts for all 3 years which we would obviously provide.
    • ACG
    • By ACG 22nd Sep 16, 5:44 PM
    • 13,174 Posts
    • 6,449 Thanks
    ACG
    • #4
    • 22nd Sep 16, 5:44 PM
    • #4
    • 22nd Sep 16, 5:44 PM
    Theres only 1 lender I know of, maybe one other who would do it. Rates are not particularly great - around 4.5%, but it would get you what you want.

    Get in touch with a broker, they should be able to help.
    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.
    • kingstreet
    • By kingstreet 22nd Sep 16, 9:42 PM
    • 29,637 Posts
    • 15,713 Thanks
    kingstreet
    • #5
    • 22nd Sep 16, 9:42 PM
    • #5
    • 22nd Sep 16, 9:42 PM
    FWIW lenders who accept cases with one year's accounts are for people whose firms have been trading for one year.

    Needing a lender which will take only the latest year's figures and not an average is a different kettle of fish and the lender pool is different.

    If you have a broker, they will be researching the available lenders and ensuring you meet their criteria. Brokers on here can't suggest lenders to you and TBH wouldn't do so as your broker should do his own legwork.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
    • neo2020
    • By neo2020 23rd Sep 16, 10:19 AM
    • 8 Posts
    • 3 Thanks
    neo2020
    • #6
    • 23rd Sep 16, 10:19 AM
    • #6
    • 23rd Sep 16, 10:19 AM
    Theres only 1 lender I know of, maybe one other who would do it. Rates are not particularly great - around 4.5%, but it would get you what you want.

    Get in touch with a broker, they should be able to help.
    Originally posted by ACG
    My broker's view is it's "highly unlikely".

    I also found a company online which advertises mortgages for self-employed people, who referred me to someone called Create Finance who said it's perfectly possible... but their fee is 5k unless you take one of their insurance products. I understand I'll be getting ripped off on the interest rate, but being ripped off by a mortgage broker as well is a bit too much.

    The lender you know... would you mind PMing me the name so I can explore or get my broker to?
    Last edited by neo2020; 23-09-2016 at 11:15 AM.
    • ACG
    • By ACG 23rd Sep 16, 10:37 AM
    • 13,174 Posts
    • 6,449 Thanks
    ACG
    • #7
    • 23rd Sep 16, 10:37 AM
    • #7
    • 23rd Sep 16, 10:37 AM
    5k in fees! Who is the lender? I would be interested to know if I am sending business to a company who is recommending a broker.

    Sadly im not allowed to mention lenders. I would find another broker as personally I think it is possible, although your broker does have more information that we do on here. I think as Kingstreet suggests, your broker is looking for the wrong thing and there is normally more than one way to skin a cat...so to speak.
    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.
    • kingstreet
    • By kingstreet 23rd Sep 16, 2:54 PM
    • 29,637 Posts
    • 15,713 Thanks
    kingstreet
    • #8
    • 23rd Sep 16, 2:54 PM
    • #8
    • 23rd Sep 16, 2:54 PM
    If your Accountant's certificates will show a steady build up and no wild gyrations, I can think of one high street lender which will use the latest profit figures rather than an average.

    Best using Accountant's certificate as it can be downloaded from the lender's website and passed to the Accountant so the broker can get it back and check it with their BDM before submitting an application.

    If limited company and not using Acct's cert, lender does Equifax business search after seeing Accts or SA302s and we've had cases declined due to the results.

    Your broker should be able to establish this lender is or isn't a possibility very quickly if he reads the above. Unless of course there is another reason why this lender has been discounted.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
    • mitch44
    • By mitch44 27th Sep 16, 6:07 PM
    • 1 Posts
    • 0 Thanks
    mitch44
    • #9
    • 27th Sep 16, 6:07 PM
    • #9
    • 27th Sep 16, 6:07 PM
    We have had the same. The hubby's previous years books were a lot lower and therefore all lenders were averaging which meant a 5000 drop in his wage. I know that Santander will use last years books together with a prediction from your accountant and also the Coventry use last years books. They will want to see all of the previous years though
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