Self Employed (slightly complicated) Mortgage Problems!

benz1ne1

Hi Guys,

Having a bit of a problem with my mortgage application, I am a graphic designer, been trading 4 years but started an events company (partnership) in 2012 which boosts my profits on my SA302, I spoke to NatYes who said No, and asked for 2 years of accounts for the events company... now I have contracts in place etc that will confirm possibly an increase in profits for the following year, I just dont know where to turn as I have a property I want to buy!

Here's a little more info.

Property 120k, 12k deposit.

2011-12 £11,164 NET (Graphic Design ONLY)
2012-13 £40,488 NET (21,429 Events Partnership) (£19,059 Graphic Design)

I had no idea I'd be asked for 2 years of the events partnership, but I have, I understand why but is there anywhere that would look at my situation, maybe take a projection or look at contracts in place etc? I am banging my head against a wall here, saved for a year solid, done nothing but work, and I have the property there ready, no estate agents involved with a happy seller... I am dreading telling him it's been a waste of time!

Hope somebody on here can give me some insight, NatWest were anything but helpful.

Wh05apk

There are some lenders who will lend against one years accounts, Halifax being one of the biggest, but not sure how they would treat the second company, would be worth speaking to a broker who could make further enquiries for you.

benz1ne1

Ah, Halifax do this?

If they lend against 1 years then I should be ok right? as I've been trading 4 as a designer and 1 as an events manager...

I've just arranged an appointment with them tomorrow morning so hopefully I will get somewhere, also got 2 brokers having a look for me so I will report back here for anybody in the same situation!

Cheers for the reply,

Wh05apk

benz1ne1 wrote: »

Ah, Halifax do this?

If they lend against 1 years then I should be ok right? as I've been trading 4 as a designer and 1 as an events manager...

I've just arranged an appointment with them tomorrow morning so hopefully I will get somewhere, also got 2 brokers having a look for me so I will report back here for anybody in the same situation!

Cheers for the reply,

Why are you wasting 2 brokers time, if you are going direct to Halifax anyway?

amnblog

benz1ne1 wrote: »

I spoke to NatYes who said No

I enjoyed that...

Halifax will only do this on a top end credit score.

There are other lenders who will work on a single year's accounts as policy but you need to access them through a broker (one broker, not two).

I hope the two brokers you have set loose are not running credit searches on your file prior to your going to Halifax.

benz1ne1

I have an advisor in my family and a broker is a friend of a friend so there'd be no charge anyway, I'm own a few favours, I am just trying to explore every avenue. Would going to the lender direct cause a problem for a broker?

i.e is a broker able to get a bit more lee-way with a lender than somebody walking in off the street?!

Thanks for the reply.

amnblog

benz1ne1 wrote: »

i.e is a broker able to get a bit more lee-way with a lender than somebody walking in off the street?!
.

An experienced broker has a better idea of how to handle this case than you do - as you would expect

Wh05apk

benz1ne1 wrote: »

I have an advisor in my family and a broker is a friend of a friend so there'd be no charge anyway, I'm own a few favours, I am just trying to explore every avenue. Would going to the lender direct cause a problem for a broker?

i.e is a broker able to get a bit more lee-way with a lender than somebody walking in off the street?!

Thanks for the reply.

The point being that the 2 brokers you have looking for you, could have spent a morning phoning around for you, which ultimately will be wasted.

They may have better/different deals to going direct, but I am sure they will be more knowledgeable about lenders criteria than going to a sales person direct in branch, who will say yes, put an application through, then could get declined 3-4 weeks later once you have incurred costs etc.

benz1ne1

Wh05apk wrote: »

The point being that the 2 brokers you have looking for you, could have spent a morning phoning around for you, which ultimately will be wasted.

One isn't a broker, he's an advisor so I will be using the broker anyway, so hopefully I've wasted nobodies time.

Thanks for the reply Wh05apk, I will keep you guys updated.