MORTGAGE ADVISERS:does anyone know the INCOME eligibility4 ECOLOGY BUILDING SOCIETY?

wannahouse

does anyone know the INCOME eligibility for ECOLOGY BUILDING SOCIETY?

we were going to go through lloyds, applied and were accepted ,for our current house purchase, but it seems its in the too hard basket for lloyds (the condition of the house), so we can get the MONEY, but not the house we want most likely...!

someone like the ecology society would lend on the house i think, as it is bring a rundown house back into use..the only problem is i don't think we would be able to demonstate our earnings suitably for them...i can't find online the eligibility requirements to have a look, but i jsut know that when initially enquiring, we were too difficult ofr other mortgage brokers to sort something out for, so they ll said just go with lloyds then, if they'll lend, which they did..

what it is, is that we are both self employed...

don't want to go into the nitty gritty on a public forum,but my husband earns good money, but has a good accountant too, so that the years return to the tax dept after he is able to claim all the legal tax deductions as self employed working from home, does not look good enough to get the amount we need to borrow (212,000) , so the only advice mortgage brokers said we could do, was to pay tax on his full income last year, and not claim ANY DEDUCTIONS, even though he was entitled to, so that he could have one years worth of books that looked really good, and they'd lend the whole amount...

now that means throwing away another 17,000 to the tax dept on top of what he would normally pay each year, for nothing, even though he has the right to claim his deductions, and would eat up alot of our deposit money, so wasn't a good option to choose..

lloyds suggested we change the structure of our business to a company, provided we had excellent credit ,which we do, and if he owned a certain percentage of the company only, they would view him as an employee, and only require one pay slip from the accountant, that way, they take his whole earnings before tax into account as an employee ,rather than the net profits as self employed.. stupid..any, we did what they advised to do, and they approved us..
we also have earnings from a rental property, and i earn a little each year...

i'm just not sure we're going to be able to drag this property through the valuation process though, as the valuer is scared of the building because its grade two listed and old and needs work...

i don't think anyone would be able to get us a different type of mortgage now though, as we've changed to the company structure so might have to wait another few years to have the company books etc, other lenders would want to see, as no one else looks at you as an employee in the way that lloyds does as i described above..but by that time, the property will have been long gone...

where can i find a list of what the ecology society or build store etc would require income wise and set up in order to know if we'd have a flying chance?

Jimbo1976

http://www.ecology.co.uk/file/?get=download/mortgageaboutyou.pdf

They do specify some income multiples here but they state that it is affordability based (like most lenders).

If you have a lot of fixed expenditure etc then the amount that you can borrow will be reduced.

wannahouse

Jimbo1976 wrote: »

http://www.ecology.co.uk/file/?get=download/mortgageaboutyou.pdf

They do specify some income multiples here but they state that it is affordability based (like most lenders).

If you have a lot of fixed expenditure etc then the amount that you can borrow will be reduced.

we only have mortgage payments of less than £300 mth to meet, but the rent we recieve is £1550 mth, so easily affordable there...

we can save over half his income after tax a year if were tight and don't spend anything, and we're good at doing that...

this house would be ok to move into and live in,straight away, it just looks like a dump, so if we could get the mortgage and move in, we can also spend the money we would have spent renting also, on the works instead.

We dont owe any money so we don't have ongoing commitments that way either..

chewback

Why not go to see a mortgage broker rather than asking them to give their knowledge away for free? Or call the lender directly.

wannahouse

chewback wrote: »

Why not go to see a mortgage broker rather than asking them to give their knowledge away for free? Or call the lender directly.

because this is a mortgage forum, and thats what people discuss on here!!!

i'm not asking anyone to give `'their information away for free"...
people are free to take part, or not take part in a discussion on a forum.
why doesn't anyone '`call the lender directly" then about any of the issues people are discussing on here, asking '`how long does this take, can we do that etc...instead of asking on the forum???
you could say that to anyone!
people ask, because its a forum...!
if you don't want to be part of the discussion, you need not post!
but unhelpful replies like that are useless...!:mad:

i'm in a position at the moment, that our lender might not lend on the property i want to buy and we need to come up with an alternative fast.. i HAVE been sleuthing online, hence knowing that ecology building society would have no trouble lending on the property, but am not sure if they'd lend to US based on their eligibility requirement...its best to take my own time reading that first, do you not think, than ring a broker and waste their time on a product we may have no chance of qualifying!

for your information, we HAVE been to a few different brokers previously, and none of them could get us a deal at present, whereas lloyds could offer it to us easily..

but theres no point having funds offered, if you cant purchase the house you would like...

there are mortgage advisers that participate on this forum because the CHOOSE to, and quite frankly, its not your business telling other people what they should and shouldn't be asking about a mortgage, on a mortgage and endowments forum, on money saving expert!

you're free to screw up your own chances on approaching a lender directly if you want to, but i would prefer to know what they need first, and then approach through a broker who knows who to match us to, and how to present us, for one of those products...
and this forum is here to ask questions.

bigadaj

Wanna house this ad your previous posts just give the impression of manic desperation.

Calmly state some sensible questions and you might get reasonable responses, taking everything so personally and subjectively doesn't help at all.

Simon_gloster

If you applied through ecology I would be carefull only declare the income you declared to Lloyds ie taxable income. Lenders do talk to each other and share information with your consent. Any discrepancy could have implications.

Ecology are specialists, call them and ask the question.

They work on affordability, is it as generous as what you've got, only you will know
100% for sure and that's apply.

See my reply on your other thread as your beyond the bank holiday and more before your valuation is sorted.




See kqy reply on your other

Thrugelmir

wannahouse wrote: »

don't want to go into the nitty gritty on a public forum,but my husband earns good money, but has a good accountant too, so that the years return to the tax dept after he is able to claim all the legal tax deductions as self employed working from home, does not look good enough to get the amount we need to borrow (212,000) , so the only advice mortgage brokers said we could do, was to pay tax on his full income last year, and not claim ANY DEDUCTIONS, even though he was entitled to, so that he could have one years worth of books that looked really good, and they'd lend the whole amount...

So nothing to do with knotweed but a dodgy broker.

The reason for the decline of your application is becoming very clear.

wannahouse

Thrugelmir wrote: »

So nothing to do with knotweed but a dodgy broker.

The reason for the decline of your application is becoming very clear.

no, its not to do with a dodgy broker...and i don't appreciate your insinuations that we are up to no good!!!

we didn't go with a broker anyway, but went directly to lloyds...
that said, there is nothing illegal about not claiming tax deductions for a tax year!
anyone who earns enough to afford to throw away an extra 17,000 in a tax year, isn't exactly struggling to afford a £200,000 odd mortgage!

my husband works from home, so we get very generous tax deductions on the portion of our rent and all bills that can be attributed to our business, and we have many LEGAL tax deductions.
ANYONE that is an accountant ,or self employed etc would KNOW that the taxable NET PROFITS of someone that woulds for themself does not at all reflect the amount of money that they earn.

when you are self employed, a mortgage provider will only go on net profits of self employed now, so what the tax dept lists as your taxable income is all they look at.

when you are an employee, they look at your TAXABLE INCOME , which looks to be alot more on a payslip than for than the same amount earned and looked at as net profits .

we have banked with lloyds for 11 years..all our accounts are with lloyds and they can see every penny that goes through our accounts.
they can also see the substantial amount we save each money, and where that sits.
they have access to look at all our accounts, and information from our accountant on what we earn each year, and our other property that we own, so please don't insinuate that we have made a fraudulent application on our mortgage...

we also have not used a broker...we went directly to the bank!
the same bank who can look at our bank account and see our income and expenses going in and out each month...
so thanks for the help thrugelmir!

i was looking at the eligibility for the ecology society, as early in my looking for a good mortgage, i came across them, but as we were already changing from self employed to a limited company, we would have had to have a history of company books for a period of time,which we wouldn't and that would rule us out, but i was hoping that possibly there would be something else they could do...

wannahouse

bigadaj wrote: »

Wanna house this ad your previous posts just give the impression of manic desperation.

Calmly state some sensible questions and you might get reasonable responses, taking everything so personally and subjectively doesn't help at all.

stop being insulting..you are not trying to be helpful on this thread and only appear to be trolling around to cause an argument.
i calmly stated a question in the first instance and you came on insinuating i was just trying to get free information from people instead of paying a broker...so ofcourse i'm annoyed..
if you don't want to answer a question , then don't participate in the thread!

wannahouse

Simon_gloster wrote: »

If you applied through ecology I would be carefull only declare the income you declared to Lloyds ie taxable income. Lenders do talk to each other and share information with your consent. Any discrepancy could have implications.

Ecology are specialists, call them and ask the question.

They work on affordability, is it as generous as what you've got, only you will know
100% for sure and that's apply.

See my reply on your other thread as your beyond the bank holiday and more before your valuation is sorted.




See kqy reply on your other

thanks simon...
all our income goes through our books and our bank accounts,so thats what we would declare, as we have to lloyds, but if we applied through the ecology building society, we couldn't apply with wages from a limited company, as we have only been set up as such for a few months,so don't have a few years worth of books. (as they don't treat company directors with a small percentage ownership,as employed like lloyds do)
we can't just then apply as self employed status using last two years tax returns instead ,then, can we, as we have just changed to a company...
had we known that, we may have done well, to apply as self employed with 2 years books, and my income plus rental income, rather than change to a company at that time and go with lloyds...

i don't know how it works once you have just changed structure...?


would you approach them directly or through a broker?

we have saved £25,000 since sept ,so they could see looking on our account history also, that when we cut our frivolous spending , we can put aside a good deal of money from our earnings...