Agreement in principle meeting. Need evidence of income?

Tobiah

Hi there.

I am in a partnership with my wife.

We have a filed 2010-2011 tax return, and our current 2011-2012 tax return is with our accountant waiting for it to be filed..

We also have basic income/expenses accounts which shows 95% of our expected income this year to April 2013.

Each year our income has steadily increased and based on a 3 yr average as stands we should be able to get the correct money for the house we have seen (pending credit checks)

I just wanted to know as I've searched and searched but can't it anywhere- when do we need to provide the certified evidence of income? On full application of the mortgage or in our interview for an agreement in principle?


I have a meeting booked for tomorrow for an agreement in principle and was hoping our 2011-2012 tax return would be filed by now but our accountant hasn't done it yet. Also the account is att and not the required acca etc so there signature on our 2012-2013 income projection isn't accepted.

I know other accountants who are qualified who can sign my accounts for the application but not before our interview tomorrow.

Thanks for the help!

Thrugelmir

Why not wait a couple of months and get your 2012/13 accounts signed off in full as well?

Tobiah

Because I've seen a house we need too be on asap

mollyjester

Different lenders work in different ways but most would offer or sometimes reject the agreement in principle first based on the information you have given and basic credit checks.

Those who use underwriters or higher risk cases are passed to underwriters who would usually then ask for proof of ID and income at the same time and review those before booking a valuation (if one was needed).

If its a low loan to value and you have a good credit rating they may not ask for it at all (even in these economic times). Its always worth having your accounts available and can see no harm taking ID and income information to the meeting with you.

_Andy_

" when do we need to provide the certified evidence of income" - why don't you ring the mortgage provider and ask?

Tobiah

Yes I asked the question last night to see if anyone knew but today I have rang Yorkshire bank and i'm just waiting for them to call me back

Let_Us_See

No lender or broker would complete an AIP without proof of income - your accounts. Waste of their and your time if proof of affordability cannot be provided or insufficient.

Tobiah

Thanks, I will have my accounts just not signed off by their accepted list of accountants...

I have spoken to other self employed friends who just said they just showed their profit/loss figures for each year for the AIP...

GMS

Are you meeting a broker or going directly to a bank?

If your accountant does not have the correct qualifications for a lender then ensure you find one who will accept SA302's from Inland Revenue. If they want an accountants reference then you need to get accounts signed by a suitably qualified accountant or find a new lender.

Much better to have 100% accurate figures to ensure there are no slip ups later in the process.

Tobiah

I'm going directly to the bank.

YBS accepts sa302's however I still need an accountant to sign off on my income projection for jan to april 2013 as I can't file the return for for 12/2013 until april...

Tobiah

Well I called the bank and they said that they would like all the formal proof (SA302's and income projection from accountant) before sending for the agreement in principle.

They also suggested not applying for the agreement in principle if there was anything that was not good about our credit history as we need a 90% LTV and that it would be harded in future to apply.

The adviser said if you had 15% deposit (85% deposit) it wouldnt be an issue.

My credit history on experian is 999 excellent but on equifax is only a 447/good rating because 3 months ago I completed an online loan quote for a car which I didn't take. I didn't even know it would affect my credit rating, it was just an online form I filled in after watching top gear!

It left like 4 searches on my experian records and 2 on my equifax record which along with a recent phone contract just purchased doesn't look good apparently on equifax? (experian don't seem to mind)

My wife has little credit history - so we have just signed her up for a natwest credit card, and got her a phone contract set up to build history. I've also added her to the utility bills etc.

The adviser said though that with the 15% they are a lot more lenient and none of this should be an issue. Guess we have to wait a few months to save the extra 5% deposit, build our credit history up and hope the house doesnt sell!