Limited company director trying to get a mortgage please help!

vlevans

We also now have an 15% deposit for sure.

kingstreet

An SA302 is basically confirmation of income/tax provided by HMRC. Get on the phone to them and ask for one to be sent to you asap. Some lenders accept these instead of accounts.

http://www.hmrc.gov.uk/sa/formgloss.htm

The accountancy firm may have one on file if a secretary could have a look for you?

vlevans

kingstreet wrote: »

An SA302 is basically confirmation of income/tax provided by HMRC. Get on the phone to them and ask for one to be sent to you asap. Some lenders accept these instead of accounts.

http://www.hmrc.gov.uk/sa/formgloss.htm

The accountancy firm may have one on file if a secretary could have a look for you?

Do I ask for it for my husband, his father or the company?
Sorry if it's a silly question but I have nothing to do with this normally.

kingstreet

I would imagine it's for your husband. It's an individual tax letter, not a company one. It might be worth checking with the broker/lender to make sure as getting it wrong will obviously delay things.

vlevans

kingstreet wrote: »

I would imagine it's for your husband. It's an individual tax letter, not a company one. It might be worth checking with the broker/lender to make sure as getting it wrong will obviously delay things.

That's the thing he has only been in charge since jan this year so husband has no tax returns for himself yet.

kingstreet

You need to establish from your broker what information they need and for whom. It may well be for your father in law. No point speculating until you've established who they are looking at.

russian

I hope it all worked out ok for you in the end. Just in case there is anyone else out there I thought I would relate some of our experiences. Our mortgage is also based on a 50% company director being paid PAYE and mostly in dividends. Over the years we had many struggles to get the mortgage we needed, when we needed it. We were even offered a mortgage with 100% redemption from the Chelsea Building society...& refused completely from Bradford and Bingley. After being completely ripped off by a bad deal from Barclays we found (independantly, without paying broker fees) a very reasonable deal from the Coventry Building society. The confusing part is that they based what they would loan on the net profit of the company, divided by 2 ( as only a 50% share holder) so you could borrow based on profits rather than income. Profits fluctuate but income can be more stable so profits and income are not necessarily the same. All I would say is that your accountant is probably not the best person to use to find a broker as you are limiting your choices to whichever company benefits the accountant ( in commission/ etc) most rather than what bank will give you the best and most suitable loan. The amount offered varies depending on their current rules and of course it will all be based on the last available financial year and a current reference from your accountant. I like the Coventry because they spoke sense and were always professional, prompt and available to discuss the details; and they rectified a mistake when they made one. Some banks are so vague and give incorrect information that results in losing money or houses.

Thrugelmir

russian wrote: »

Profits fluctuate but income can be more stable so profits and income are not necessarily the same.

To maintain a stable income. The Company will have had to accumulate returned earnings with which to pay the income. Without profits there is no income.