Halifax Mortgage-Self Employed-Proof of Income

indielad

Yes, but I haven't reached that nominal sum yet, beside I sell a combination of 0% rated items (childrens clothes)

indielad

Not helping to be honest, I'm looking for likelihood of Halifax approving my mortage giving the figures quoted by accountant not tips on running my business. I'm sure i can't be the only one whos used Halifax and done 2 years and a projection.

Not sure if Halifax would look at it again if it was rejected, If I offered a 25% deposit instead of 20%, it seems borderline either way

Thrugelmir

indielad wrote: »

Not helping to be honest, I'm looking for likelihood of Halifax approving my mortage giving the figures quoted by accountant not tips on running my business. I'm sure i can't be the only one whos used Halifax and done 2 years and a projection.

An underwriter would need to understand your business in its entirety. Anyone can produce a projection. Majority that I've seen fall down under scrutiny and questioning.

indielad

Well likesay my accountant gave me an ultra conservative projection figure as the mortgage advisor stated the underwriters would be suspicious of any large jumps for the previous year, my actual forecast for the projection was 15 K higher than quoted, so they can scrutinise away.

What I really need to know is if the 2 years accounts are going to be averaged out to dictate the maxmimum loan Halifax are willing to offer, or as the last year and the projection are all steadily increasing they'll take the higher year's net income into account. I guess there are quite a few scenarios, and there are a range of views.

Thrugelmir

indielad wrote: »

Well likesay my accountant gave me an ultra conservative projection figure as the mortgage advisor stated the underwriters would be suspicious of any large jumps for the previous year, my actual forecast for the projection was 15 K higher than quoted, so they can scrutinise away.

What I really need to know is if the 2 years accounts are going to be averaged out to dictate the maxmimum loan Halifax are willing to offer, or as the last year and the projection are all steadily increasing they'll take the higher year's net income into account. I guess there are quite a few scenarios, and there are a range of views.

Underwriters are employed to do precisely this. On a case by case basis they will assess the application. There are risk guidelines that they need to adhere to. Within this they will make a decision.

As I said earlier your Accountant will put together figures on information provided by you. You need to be to substantiate these figures. With data such as a trend of increasing sales on a month by month basis from inception of the business. To support your case.

indielad

As I said earlier your Accountant will put together figures on information provided by you. You need to be to substantiate these figures. With data such as a trend of increasing sales on a month by month basis from inception of the business. To support your case.[/QUOTE]

I have SA302 showing a net gain of £29,000 for last year. I sell on Ebay so all my sales records are there as proof, I cannot manipulate them. I don't think they actually look into things like that? My current Sa302s show similar figures and they would look at my bank statements and would the see the same steady rise coming from my business? and a small rise projection for next year of an extra 2 k . Actually it is much more, which is why I can offer a higher deposit in such a small length of time if need be.

Simon_gloster

indielad wrote: »

Well likesay my accountant gave me an ultra conservative projection figure as the mortgage advisor stated the underwriters would be suspicious of any large jumps for the previous year, my actual forecast for the projection was 15 K higher than quoted, so they can scrutinise away.

What I really need to know is if the 2 years accounts are going to be averaged out to dictate the maxmimum loan Halifax are willing to offer, or as the last year and the projection are all steadily increasing they'll take the higher year's net income into account. I guess there are quite a few scenarios, and there are a range of views.

I'll answer as I know.

Halifax use an average of the last 2 years if you declared income to HMRC is higher than last year.

If your net profit was less in april 12 than april 11, they will use the most recent lowest figure.

They have to capture 3 yrs figures but only use the last 2.

If someone has only 2 yrs figures, £0 is input for 3 yrs ago and generates an underwriter referral.

As Thur said, anyone can give a projection and are taken with a pinch of salt at times.

Thrugelmir

indielad wrote: »

Actually it is much more, which is why I can offer a higher deposit in such a small length of time if need be.

That maybe your answer. Hold back for a while. As the additional net profit (given that you are projecting an increase to over £40k) will result in a far greater deposit being available.

The increased deposit giving the underwriter far more reassurance.

I realise that I was questioning you business. However this is what drives your income. As opposed to someone that sells there time not goods. So does have a material impact on any lending decision. Whether it be a mortgage or business loan. To often projections are pie in the sky figures.

indielad

Unfortunately, due to bad advice from santanders and brokers I put an offer in for a house after many weeks searching, and have paid solicitor's fees and valuation. I'm a first time buyer so new to all this.

It seems that Halifax has just been performing a charade by making me do this accountant's report then? If they just average out the lower 2 figures I didnt have a chance to begin with, how gutting!

Thrugelmir

The advice came from your broker. The banks concerned merely considered your application in a proper manner. Something you would expect them to do. There's no charade. As lending money isn't a game.