Please help getting desperate!

Aiadi

Any help appreciated!
Offer accepted on a purpose built flat with long lease in London.
Price - £227,500
Deposit 30% - 68250 and £159k mortgage needed in husband's name who is a full time GP. Gross profit around 80k annually. Don't have SA302 forms but have requested them from HMRC.

Non - homeowners and we only pay around £1100/month rent in Scotland. We want to buy in London as it makes better financial sense, especially as we may want to go back there one day, so we are still on the property ladder there (won't live in the flat, just thinking that in 5 yrs time we won't be able to get on the ladder at all in London if we buy somewhere our money won't grow)

This is the sticking point. Non homeowners.

I have heard Virgin Money might lend to non homeowners but we would need SA302, which is going to take a while to come through, meantime I'll lose the flat.

Any advice? Very disappointed as we have up to £150k sitting there and I want to use it to get 1 or 2 flats to build up an income and invest and we also have about 2k spare per month. We can easily afford but nobody wants to play ball!

GMS

Does your husband have an accountant?

ValHaller

Yes, Buy to Let is difficult as a non homeowner. However, I would reckon that one of the Mortgage professionals will be along to say 'Wrong lender, but there are solutions out there'

Aiadi

Yes husband has an accountant. Unfortunately, he appears to be SLOOOOWWWW. I was proceeding (or so I thought) with L&C but hit a brick wall when broker did a quick check before the application and heard that Virgin Money will def need SA302. Which means weeks of delay. Plus apparently they want the 2012/13 SA302 as well when that tax return hasn't even been submitted! We are incredibly low risk, the interest payments will be £450 - 500 /month and the rent £1100/month so I can't get my head around this.

GMS

Find another broker!

L&C could have dealt with this with a few phone calls.

Aiadi

It was L&C who are saying this! And I have tried 2 other brokers. All have said no go without SA302! And one has said there are no lenders at all who would lend buy to let without being a homeowner!

GMS - do you know a lender who will lend?

GMS

I do not know enough about your circumstances to name lenders but there are lenders who will do first time landlords.

Has a decision in principle been submitted to Virgin?

Aiadi

As far as I understand it, the broker spoke to his business manager (?) who said that Virgin will not do it without SA302.

We have no other issues, we have good credit history and no other debts. Just that we are non homeowners (sold our flat in 2011) and self employed.

RockPaperScissors

FYI in case it helps, my OH's SA302 came within five days :-)

GMS

Did the broker ask about using an accountants reference instead?

From Virgin lending policy:

Income Verification for Self Employed Customers

Virgin Money will require the last two years accounts, or accountants certificate, or last two years HM Revenue and Customs SA302 forms.
Virgin Money will consider 100% of the average of the last 2 years net profit for Self Employed customer, as long as the following conditions are met:
Income - 100%

• Average of the last 2 years net profit evidenced by:
  • Accounts
  • Accountants Certificate
  • Inland Revenue Tax Assessment
• Where net profit is decreasing the lower figure will be used provided the business is on track to make the same or increased profits in the next financial year. Evidence from a suitably qualified accountant must be provided.

• The customer's drawings do not exceed the net profit of the business for two years running and the company has a positive net worth (i.e. positive capital account or assets outweigh liabilities).
• The company's capital account is not in deficit / Asset's must outweigh the liabilities in each of the last two years.
• The company and their auditors must be registered in the UK
• Acceptable Accountants qualifications are amongst the following
  - ACA, FCA, CA, ACCA, FCCA, AAPA, FAPA, ACMA, FCMA, MAAT, FMAAT, AAIA, FAIA, AFA or FFA.

Aiadi

Thanks for your help GMS. Yes I saw that myself so rang the L&C broker up at 5 (!) and he said he'll look into this again. I'm not hopeful as to make things more complicated my husband's surgery are in the middle of changing accountant! The previous one was slooooooow as and the next one still hasn't been instructed.

Ok, so to summarise, I need to ask the current accountant for a certificate? Or is it called something else?

I couldn't tell from the virgin document - are virgin ok with non homebuyers?