Worried my mortgage is going to be refused

amancalledmartin

Hi all

Don't know if anyone can give any advice, but I'm just fretting at the minute! We're trying to get a mortgage using two streams of income - my main job (which is fine) and an income from dividends (which is causing a problem). We've applied for the fixed rate Alliance and Leicester deal and they've ok'd everything except my second stream of income. The firm's accountant has sent them an accountancy certificate; they came back and said they needed a full set of accounts. He said they didn't because I'm not a director or a majority share-holder. So they came back and said that they need a payslip because I'm an employee. But I'm not an employee; I'm a minority shareholder who is paid dividends. I've asked for an underwriter or manager to ring me because I'm having no joy talking to the basic advisers. They said someone would call me today. They haven't and when I rang back to find out why they said they'd referred it back to underwriters to consider without my second income. I don't earn enough without taking that into account for them to give me the mortgage so I'm basically waiting for them to call me and tell me they've turned it down. How can I make them use my second income stream? Has anyone got any experience of talking sense to these people cos at the moment I'm failing miserably!!

TEDDYRUKSPIN

I am actually A&L have been patient to be honest. They are correct to ask for all this information if you are including your second income as part of the affordability.

My question is, if you are obtaining dividends, why have'nt you got your own set of accounts? Self assessment tax receipts?

Even if you are a minority shareholder, it means you are taking some income (dividends) and this must be disclosed to the inland revenue. If you don't it just means you do not earn a second income.

amancalledmartin

Hi there

Thank you for your answer. The company I take dividends from is a family company and the accountant for that is also my accountant so he does my tax return. I do understand that A&L have to prove my income but I'm struggling to understand how they want it proved. First of all they sent my accountant a form, which he tells me he filled in and confirmed my income. They then went back to him and asked him some questions, the upshot of which was them coming back to me to confirm whether I was a company director or majority shareholder. When the answer to both questions was no they said they wanted payslips, which I don't have. When I said this and asked what other proof I could give them they couldn't tell me so I asked for an underwriter to call me so I could discuss it with them and make sure they had what they needed. They haven't ever called me and when I rang to find out why I'm told that they're now disregarding my second income. So basically, while I'm fully prepared to prove it to them (and believed I already had) and while I can prove it, they seem to have decided it's easier just to ignore it.

TEDDYRUKSPIN

Ok. Simple answer. Obtain 3 years worth of accounts. i.e. 2008, 2007, 2006 of that company. The full accounts must state your name on it. It will also tell you roughly at the second to back page, the percentage of share you have.

Send the whole thing to them. This will be suffice.

amancalledmartin

Thank you. I'll suggest that to them when they ring tomorrow and hope it works!

Thanks for your help.