Mortgage delay

CurrentRatio

Hi,
I have just heard that I have had an offer accepted on a house, but I have an issue.

Basically I shall be applying for a joint mortgage with my wife. She is in full time employment, but I am a contractor with my own limited company.

I spoke with a couple of lenders a few months back, who indicated that I would likely be able to use the company income when applying for the mortgage.

The problem I have, is that I don't have my company accounts for the last year yet (year has just ended), and I have been told that it will probably take 3 weeks to get them done.

I am naturally keen to get the purchase process moving, and I am just wondering whether this delay will have an impact on how long that process will take. In other words, will the 3 week delay in getting the accounts cause a 3 week delay to the purchase process, or can it be absorbed because other parts of the process can still continue?

We are at the bottom of a 3 property chain, with no property to sell, and there is a complete chain consisting of one property beyond the one we are buying. Also, I don't believe that the people selling to us will need a mortgage.

I'll naturally go back to the lenders to ask them but, based on previous experiences, it can take a while for them to respond to questions, so I was hoping that somebody here could give me some early advice.

Any feedback would be much appreciated.

tenacious

Hi,
I to am a contractor with my own limited company. I only started contracting in March of this year and thought we wouldnt be able to get a mortgage. Out of curiosity I contacted Contractor Mortgage Made Easy (as recommended by my accountants - they specialise in obtaining mortgages for contractors) and they said it shouldnt be a problem. They sent my details to a number of lenders they know are open to lending to "us sort" and we got AIP from 2 banks. We are now in the process of applying. I have just had to supply my current contract and a letter confirming it is likely to be extended. I had to provide 3 months personal and 3 months business bank accounts and my CV in addition to my contract.

Give them a call, or there are a number of others who specialise (I think Freelancer Financials are one of them). CMME have been brilliant so far, now we are just waiting (hoping) for our offer. YOu do pay a fee (£495) for the pleasure but I thought it was worth it as I wouldnt know where to start with who to approach.

p,s. the offers were from Clydesdale (who we are going with) and Halifax and the rates are the same as high street - jus in case you fancy approaching them yourself. Good luck!

Hope that helps.

vlevans

Hi just a quick reply, my husband recently took over his fathers business in jan this year, and we applied for a 85% mortgage with natwest 2-3 weeks ago and have just exchanged contracts today. My husband will not have his first year accounts til next month and they still approved the mortgage. So it maybe worth giving them a ring.

CurrentRatio

Thanks very much for the advice so far.

I'm reasonably confident that I'll be able to use the company's income towards the mortgage (although I have had a couple of months without income).

It seems that it might not slow things down, if my accounts take a few weeks. I've been left with the impression that it might be possible to complete 8 weeks from now, but I suppose that I can start the mortgage application without all the paperwork, and then provide it later.

Is that right?

mp80

If you are giving sensible numbers for pre-tax and any dividends etc there's no reason to doubt you'll be successful. I was a contractor up until this April when I went back to permanent so part of my last 6 months income was on my own Ltd. We have just applied for a mortgage and in my case it was done over the phone, they asked for headline figures only and they've not asked for any accounts. Approval without any problems.