Halifax mortgage - self employed proof of income?

xyellowx

op- i bank with halifax and like conrad said would not of applied for a mortgage with them in your posistion i asume you bank with them to and just applied as it was your bank?

if you get rejected could have a knock on effect on other applications in hind sight a broker would of been best as could of targeted the best lender for your posisition and needs

best of luck and fingers crossed but would think you may be disapointed

kingstreet

xyellowx wrote: »

in hind sight a broker would of been best as could of targeted the best lender for your posisition and needs

See post #1.

we are using a mortgage broker

and post #7

We were using an IFA who spoke to 6 lenders and when it got down to the nitty gritty, both Santander and Northern Rock didn't like the "bumpiness" of both of our recent net profits

FWIW I wouldn't have put this to Halifax either.

p_a_u_l

Thanks for the feedback.

One of my customers is a IFA company and they made the initial enquiries with the lenders and they ended up drawing a blank with lenders wanting a huge deposit (> 25%). The feedback was to try again when my fiancee has this years full figures (currently she is £18k net profit YTD with a projection of £31k for the year). My figures are currently £10k net profit, two months into my FY with a projection of £40k+ based on currently secured projects.

We decided to try a 'specialist' mortgage broker as I work in IT although not as a contractor.

Unfortunately we were after a specific house (a repossession) which has tight deadlines attached to it.

From what I understand Santander wouldn't even do it at 80% LTV. We both have accountant certificates and projections for this year.

I guess it is just a waiting game now.

p_a_u_l

Just got off the phone with the MA and underwriters aren't happy with the case so its looking bad.

They will apparently exclude my income completely (apparently my £19k retained profits in the business last year are worthless). They will go solely on my fiancee's earnings last year (£18k), even though that was only 6 months work. They won't take an average of the last three years as her most recent year was lower. Our last 3 months bank statements showing us banking over £20k combined in 3 months.

Feel pretty annoyed as they had all the figures and circumstances prior to the application (case was discussed with head of processing) and given the green light. So I'm currently the valuation fee down, solicitors fees and only 10 days left to exchange.

Going to try to see what they will actually lend us, as we are so far down the line with them, its probably our only chance of getting this house by proceeding with them.

I'm off to see if the answers lay in the bottom of a bottle of Bordeaux...

geri33

Hi Paul

Our broker swayed us towards Halifax 6 years ago when partner was self-employed. At the last hurdle, despite assurances from broker and sending in numerous bits of paperwork, undertaking survey, having all our savings with Halifax and putting down 30% deposit etc we were were told our application was refused. We were then told that we could pay for a retype of the valuation and our application would be put through Bank of Scotland, the same group! Of course it went through and we got our mortgage. Have ended up paying a lot more over the years as the rates for self-employed are a lot higher but we've managed.

Good luck.

ACG

Halifax are horrible to do business with from a brokers point of view (in my opinion) you dont have a point of contact as such and theyre just a nightmare.

Personally i wouldnt have sent your case to halifax either....im not sure where i would have sent it as id want to see everything before hand but your broker should be running your circumstances by the lender before they make an application.

p_a_u_l

I actually spoke with the Halifax underwriter by some sort of fluke (I called the mortgage processing team and was bounced around until I ended up speaking to the Halifax Premier mortgage banker who actually was on our case.)

Well the case was withdrawn by our broker during the underwriting phase as they had said they will decline if we proceed.

So Halifax is out.

Just after some advice now really.

My partners last three years books and SA302's show:

08/09 25k
09/10 32k
10/11 18k

She has an accountants projection for 32k this year (she is already 21k YTD).

I was employed until November 2010, but I formed my company in 2008 and have three years worth of accounts.

08/09 1.5k (Net Profit - accounts)
09/10 -1k (Net Loss - accounts)
10/11 19k (Net Profit - accounts)

My employed earnings:

08/09 £29k (P60)
09/10 £31k (P60)
10/11 £27k (P45)

I have a projection for this year showing 42k net profit (I have just secured another large project).

We are looking to borrow £150k with a £25k deposit. We have no credit card debt and a £2.5k car loan@ £115 p/m. We have no adverse credit (apart from a single late payment in 2009).

Can anybody suggest a self employed friendly lender that will either:

1. accept accounts only (not 302's)
2. accept one years accounts
3. accept an average of the last three years accounts
4. accept a guarantor
5. accept a projection

We have now tried 2 different brokers and they have both drawn blanks (Halifax would lend £59k apparently!).

We have family members with no financial commitments willing to act as guarantors, we have 15% deposit but we are still too risky it seems!

Anybody been in a similar position recently?

xyellowx

if you find a lender you will be paying 8% plus or there abouts with all kinds off clauses
i would save until you have a larger deposit and in that time lending criteria may relax abit or your business may take off and you look at houses you may not be looking at now