Mortgage Mis sold???

betmunch

Come on everyone, we all know whats happening here. Why are we leading the poor guy around and winding him up?

You have a good accountant that writes off a lot of your income as business expenses, therefore you have a low net profit and dont pay much tax.

You are asking to borrow a sum of money and the bank has said you cant have it based on your low net profit.

Its really that simple.

If you dont have a high income you dont pay much tax, but you cant borrow as much money. You cant have it both ways anymore.

All that has gone before is irrelivant as you asked for it and you got it. No mis-sold mortgages (although possibly some fraud on your previous applications, which you may not have even known about)

I dont believe Nationwide ever lent 9.6x income, but they did offer a fast track system that could be abused (and was, regularly!) to obtain loans of 9.6x income.

Cheers

JimmyTheWig

pse wrote: »

I think the problem was that even though accounts and letter stated GROSS, the BANK (Nationwide) put this down on there system as (last two houses) as NET.

It's a shame you didn't notice this at the time. If you had have noticed this you could have told the bank about it then they wouldn't have lent you the money... Is this what you are saying you would have wanted to happen?

JimmyTheWig

Oh, and even if you do find someone to lend you what you need for your wife's new house, I really doubt that anyone will lend you more money to buy your own place, regardless of how much deposit you save up.

You say the current house is big and that you have £10k in the bank.
Can you use that £10k to convert the current house into two houses / flats? Then you could have one each.

ILW

JimmyTheWig wrote: »

Oh, and even if you do find someone to lend you what you need for your wife's new house, I really doubt that anyone will lend you more money to buy your own place, regardless of how much deposit you save up.

You say the current house is big and that you have £10k in the bank.
Can you use that £10k to convert the current house into two houses / flats? Then you could have one each.[/QUOTE]

That would be interesting when bring "guests" back.

getmore4less

pse wrote: »

I feel like im going in circles.
To clear things up.
Currently have a 280K mortgage on a house that both the wife and I live in.
I want to buy a house for the wife using 70% equity of existing house = 40% LTV of new house.
30% equity of existing house was going towards getting myself a house as this is a 25% LTV of new house. I want to increase this, so will rent till I save up more.
I hope this will clear up things.
As "getmoreforless" has stated quite well I could pay myself more from company , but this will increase my tax burden in a time when I am trying to expand the company.
I may not be approaching the correct angle for the bank to get the loan.
Joint salary is 34K as wife is part time.

If I have this right 70% existing give you a 40% deposit and the need to borrow 60% £170k so the 70% is £113k that makes the 30% £48k

That leaves another £22k(they allready said you can have £100k) to find or joint mortgage of £122 on £34k which is < 3 salary multiple.

Look like your way out is to just accept you will have to live in rented for a while untill your accountant finds a way to get more money out of the business for you.


Does the business have any debt could it borrow, and you pay yourself a nice big dividend to boost your cash levels.

Another option is get the wife a cheaper house

pse_2

You are in the ball parks give or take.
Just found letter from accountant stating gross and not net at figure submitted to bank, so no fraud there on our part. As it alignes with company accounts.
I am going to look into if my company can get a buy to let mortgage and rent this to me (tax efficient too). This should go on companys monies and not me personnaly, thus overpayments payments of mortgage should increase equity within company.
Give my wife a larger stake of our assets.
34K net joint income = 47k Gross = I can borrow upto 156K with another provider.
This will solve problems

pse_2

Thankyou to "getmoreforless" and "betmuch" for constructive help and the few others who are here to help.

As to "vigilant22" and Jimmythewig" your efforts and help in this matter must make your employer proud to have a asset like you. Being a problem maker, rather than a problem solver that is. Theres no talent in that.

Raggie

Don't forget that getting a mortgage with joint incomes requires both parties to be named on the mortgage and therefore both names to be on the title to the property.

This may confuse the "situation" with regards to the separation?

pse_2

All I need help with now, is who can offer me the best buy to let mortgage for the company, based on a 25% LTV.
As to the wife (ex) and my children, I will be happy knowing I have done the best I can for them.

(Long live the entrepreneur)

neas

pse wrote: »

Thankyou to "getmoreforless" and "betmuch" for constructive help and the few others who are here to help.

As to "vigilant22" and Jimmythewig" your efforts and help in this matter must make your employer proud to have a asset like you. Being a problem maker, rather than a problem solver that is. Theres no talent in that.

pot... kettle.. black

Whereas i had sympathy for your original posts, even though they were highly confusing, not entirely literate or thought through... but adding snide remarks in (reading this blank) makes you look nasty too.

Just food for thought.

But as others have suggested your situation was complex and an accountant would have been more 'accurate'/knowledgable than some MSERs.