Accord mortgage application declined because of 'poor documentation quality'

Joey122

I am so frustrated

I have a 50% deposit and we want to buy a flat worth 240K - I have 120K deposit so need a 50% loan

It is a flat in a nice part of london and the valuer has valued this at 300K

I am self employed and have one year accounts which show a 80K+ profit - This year has been even better and I should be making better net profit

I applied with Accord who asked for stacks of paperwork - Business, personal bank statements, resume, work I have done, accountants reference and a whole lot more

The case was then 'flagged for audit' and I have just found out that the application has been rejected.

I have no kids, my credit is excellent and I would have been able to repay the 120K loan within two years

Two questions:

1) Is accord a strict lender in the grand scheme of things
2) What is liekly to be the reason for refusal?

Lokolo

Self Employed people usually need more than 1 year accounts.

holly_hobby

Accord have a min SE trading period of 2 yrs (salaried controlling directors 2 yrs company bank statements).

Check criteria here - http://www.accordmortgages.com/information/criteria.html

Holly

GMS

There are lenders who will consider applications with 1 years accounts. Your low LTV helps.

Have a chat with a broker.

mp80

Hi, I was in the same position, 1Y accounts only but with high profits, applied through FD who I have been with for nearly 4 years, and no problems, and in my case I have 80% LTV. Maybe give them a try?

DeludedAussie

mp80 wrote: »

Hi, I was in the same position, 1Y accounts only but with high profits, applied through FD who I have been with for nearly 4 years, and no problems, and in my case I have 80% LTV. Maybe give them a try?

Thanks - When did you apply for this

I called a number of times and they have said min 2 years accounts

tenacious

I am going via a broker to Clydesdale. I am an IT contractor and only started in March having previously been permanantely employed with the same company for 11 years. I have my own limited company and dont have even 1 year of accounts. They asked for 3 months personal and 3 months business bank statements, my current contract and CV and letter of anticipated contract extension. I went through a specialist broker who work with contractors and they dont forsee it being a problem (although I dont have the offer yet!)

Have you spoken to a broker about it? They will more likely know which banks to approach but I would say with your LTV amount and the figures you have quoted I would be shocked if you cant get one with someone!

kingstreet

If the OP applied to Accord, he did it via a broker.

I'd be asking the broker why apply to Accord with no chance of acceptance?

mp80

DeludedAussie wrote: »

Thanks - When did you apply for this

I called a number of times and they have said min 2 years accounts

About 4 weeks ago!

Wh05apk

Sounds like your broker may have stated two years accounts, only to be found out when he submitted the case? I think Accord instruct the valuation before underwriting the case, assuming we/you are able to substantiate the information provided.

I think you need to establish what your broker has done, he may wish to reimburse your fees if he has submitted an application which will clearly fail?