Abbey Mortgage income proof!!!

darkman13

hi guys, me and my brother run our family business which was handed down from our father, which is doing very well, he has the business building as a freehold under his name, he has had enough and has decided to retire he is moving back to cyprus with mum, his business mortgage is 80,000 and its worth 220,000, he is giving me his equity as a gift. after so much forums and faxes, we managed to get a mortgage approved subject to survey under my name. now we are trying to do the same to my parents main residance in london, they are also giving this to me and my brother as a equity gift, dads mortgage is for 275.000 and the value is 400.000, a good 125.000 deposit, abbey have accepted my self and my brother with credit score all they require is 2 years company accounts from our accountants or his explenetion of our earnings, and now the question.....

Is this what abbey usually wants or will they want more. i am worried they will ask for bank statements to prove income as i have allways withdrawn cash from business as its a cash function based company. my accountant will provide details but i have been told by mortgage broker that they could ask for bank statements to prove income, which will be a problem. now i am constantly thinking will they ask wouldnt they ask, does any one have any idea as to what their usual procedure is?

HelpWhereIcan

Your mortgage broker is correct that it is one of the things they could ask for. 2 years ago the answer would be that they'd be very unlikely to ask.

At the moment however the Abbey are a bit 'inconsistent' in what they will and won't ask for.

You have to remember that every underwriter has to put his/her name to each case like this that they sign off and, in the current climate, there is a lot more '!!!! covering' going on than in the past. So much so that some of the things I have been asked for really beggar belief at times e.g a letter from an actor's (who mainly does advertising but some TV programmes) agent confirming that they will get them work for the forseeable future- now which agent will confirm that for anyone but a famous actor?

Unfortunately this is one of the problems with the cash economy part of some businesses. I had a client who owned a successful takeaway who took silly amounts of cash out each week for himself and various family members (around £3k pw IIRC) but whose accounts only showed a turnover of about £100k with a net profit of £25k.

They are also looking to ensure that they do not take an uneccesary risk on a business that has been adversely affected by the current situation (cue loads of additional questions and checks if I even think about applying for a mortgage at the moment).

Chances are they will accept the accountant's reference as long as s/he is Chartered or Certified but you you may hit problems if your company is Ltd and the accounts at companies house show something different to the reference (I have known this be checked).

In all honesty I think the broker is just trying to warn you of what may happen. Their 'usual' procedure would be to accept the accountant's reference at face value; as long as they were satisfied that the type of business posed no above average fraud risk. Unfortunately there is no way of knowing until they do/don't.