credit checks with existing provider

ducking_and_diving

Hi
This is my first post so apologies if im not too up with it all.

I'm looking to move house which means porting my existing mortgage with Abbey/Santander, and also borrowing some additional money from them. The last year or so ive been making regular overpayments on my mortgage and have never missed any payments

But to borrow more i still need to go through an affordibility check and a credit check

The potential issue is that 2 years ago i started my own business and so am a director in a limited company.

Obviously i can still described myself as employed , as technically i am employed by the company, and i can provide pay checks to prove affordibility.

Do Santander/Abbey look on companies house for any reason to confirm employment details, or do they just call the payroll department for checks? I dont really want them seeing its my company , especially as i cant provide 3 years accounts i would never be able to borrow more money

Also on the credit check will they just look at my credit score when im already their customer, or would it be a full blown report that might link me to the business bank account etc?

Thanks in advance

beecher2

I'd advise you to be upfront with Santander about being self employed. Stating otherwise is surely fraud?

ducking_and_diving

i thought one of the advantages to choosing a limited company rather than sole trader or partnership was that you are classed as employed?

beecher2

ducking_and_diving wrote: »

i thought one of the advantages to choosing a limited company rather than sole trader or partnership was that you are classed as employed?

I have no idea, but from your post you clearly want to hide the fact that you own the company. If is isn't a problem, why aren't you intending to be upfront with them?

ducking_and_diving

because as far as i understand, if you are self employed you have to provide 3 years accounts and i can only provide two.

although i'm not classed as self employed for tax purposes, i dont know if mortgage providers see it differently.

maybe that should have been my question: do mortgage providers see being a company director as being self employed, and if so, what are my chances of borrowing extra if i cant provide 3 years accounts?

_Andy_

Have you rung Abbey to ask about it?

Senior_Paper_Monitor

They will ask you the questions ..... Who are you employed by ? Do you you have more than 10% (I think its 10 for Santander - too busy to look it up at the moment) of shares in the company ?

If you lie its fraud!

It is 90% certain that they would pick up on your ownership even if you hide it (and that would be very bad news) - fess up and their should be a solution (assuming no hidden problems) with someone, although I am not sure of the detailed Santander policy without looking it up.

I would recommend using a whole of market 'mortgage adviser' who will be able to identify a receptive lender and help you present the case properly.

VIGILANT22

For any additional borrowing you will be credit checked, nothing to do with "credit score" this is just a myth

ducking_and_diving

SPM - what is a whole of market? do you mea like a mortgage broker?
would i be able to port existing mortgage and use a different lender for the additional borrowing? or do i risk losing the original mortgage if i move?

if i owned less than 10% of shares but was still a director would that make a difference? its all the same to me how much % are mine and how much my husbands

Senior_Paper_Monitor

D&D (I am beginning to suspect that the user name tells much of the story?) - I really can't answer the specific questions you are asking without knowing a lot more about your (and your husband's) circumstances.

What I can tell you is that 'hiding' your employment status is not the answer - sit down with an IFA / broker and go through your complete financial background. They will then be able to suggest how you best proceed (assuming that it is possible).

The last thing you need is to be rejected or to get caught hiding information.

In principle, the simple fact that you started a business a couple of years ago does not make you (or you and your husband) ineligible for a mortage - but it may limit the number of options available to you.

FraudBuster

Search this board for Hunter.:)