Refused Mortgage need some advice

xyellowx

was trying to help you but wont waste my time in future

no point coming on here looking for advice if you dont like the answers people will give you

what answer was you hoping for ?
"what you have a whopping 10% deposit and the set in stone company director contract that wages will always be honoured even through bad times get on the phone to the financial ombudsman you have a major liable case for discrimination get in quick before the avalanche of other company directors proceed with there claims "
or wake up smell the coffee save 25-30% deposit and produce 3-2 years of company accounts you may do better

sdp80

xyellowx wrote: »

was trying to help you but wont waste my time in future

no point coming on here looking for advice if you dont like the answers people will give you

what answer was you hoping for ?
"what you have a whopping 10% deposit and the set in stone company director contract that wages will always be honoured even through bad times get on the phone to the financial ombudsman you have a major liable case for discrimination get in quick before the avalanche of other company directors proceed with there claims "
or wake up smell the coffee save 25-30% deposit and produce 3-2 years of company accounts you may do better

if you read my first post you would know exactly what im looking for.

making digs at my employment status without further explanation isnt helpfull (you seem to have a problem with the fact im a director?)and i wouldnt class it as advice so please honour your comment not to bother in future it will save us all a lot of time.

now can we put the toys back in the pram and act like grown ups?

as ive said previously i intend to apply for a mortgage in 2/3 months, is it worth applying given my situation and what can i do to give myself the best chances?

xyellowx

the only people who will have a problem with you being a director is the bank (class you as high risk)
where mortgages are concerned you are better rated if you work for joe bloggs down the road on £x per hour than being a director (not a dig but a fact)
answer to your question
you need alot more than 10% deposit you will need 2years company accounts and be prepared to have to use a mortgage broker and not have your mortgage with a prefered high street bank (other lender at higher rate)

would advise you to keep your personel and business bank acounts with different banks any accountant worth his salt would tell you that

sdp80

xyellowx wrote: »

the only people who will have a problem with you being a director is the bank (class you as high risk)
where mortgages are concerned you are better rated if you work for joe bloggs down the road on £x per hour than being a director (not a dig but a fact)
answer to your question
you need alot more than 10% deposit you will need 2years company accounts and be prepared to have to use a mortgage broker and not have your mortgage with a prefered high street bank (other lender at higher rate)

would advise you to keep your personel and business bank acounts with different banks any accountant worth his salt would tell you that

Thank you for your reply - it was a lot more informative and better structured than your previous post.

I find it strange that the bank would prefer a person employed rather than a person who runs his own business and has 2/3 years worth of good accounts figures - Mr X who works for Joe Bloggs Ltd could end up being made redundant due to his employer loosing money in the current recession where as I am not likely to make myself redundant especially when I have prooved via my account figures that our business is sustainable.

Out of interest why do you advise to keep personel and business bank accounts with different banks? I went to HSBC as i though I would have more leverage over them because we have an existing relation with them through the business account. I didnt really see any problems having a personal account with the same people I have a bank account with as they are two entirely seperate entities?

i have 2 years worth of accounts, most banks need 3 - we have just finished our 3rd year of trading but I have not had our accounts done yet, we usually dont do them untill nearer the end of the year although this year I will be getting them done earlier.

xyellowx

Mr x could be given his notice friday completely out the blue were the director of the company could of seen it coming not upgraded the family car not booked the summer holiday been careful on personel spending your right it doesnt make sense.

banks charge more for company director/ self employed tradesman to have a mortgage if you can get one with the bank at all

The problems will come with banking with the same bank as the company if things start to go bad i.e work slacks /a customer goes bump owing you thousands they will put a block on your account if they think they are going to lose out stopping you from accessing your money (they will of course apoligise say it was done in error and sombody will be spoken to) but you could be left with no way of getting at your money for a month plus
ive seen it done first hand

Conrad

OP - You want to know how you can improve your'e chances, so here goes;

+ Resemble a cautios libraian / local civil servant in your day to day dealings - these are the types who have high scores generally as they tend to be cautious, to plan for and expect the worst - so always have plenty in the bank and always see everything through so no payments on anything are ever late

+ Be stable - do not chop and change address etc, don't put divorced in an application, put single - stability all the way

+ Have a landline phone at home and give one for work to - often people just give a mobile no' which reduces score

+ Make sure you are on the voters roll

+ Lenders value all forms of stability - for example you get a better score if you nare with a Bank 15 years rather than 10


I suspect you do all these things already, but it doesn't hurt to pin them here as other readers may not be aware.



WHY ARE SELF EMPLOYED AND DIRECTORS SEEN AS HIHGER RISK?

Statistics dear boy, statistics.
To make sense of life one has to step outside thier own thoughts, thier own reality tunnel and instead take and objective dispassionate view.
The arrears statistics show those with thier own business are more likely to suffer with arrears. It's as simple as that and no amout of pleading things like 'but I paid off other debts just fine', has the slightest impact on the credit scoring system as those systems are based on statistics and not on ad hoc random personal claims by people that say 'Im different'.

Also to be frank 10% is very high risk lending. When I first went self employed we saved 25% deposit within 2 years.

Cheers