Applying for Mortgage advice

kingstreet

Yes. Obtain copies of your last three years SA302s from HMRC.

They will simply confirm the income from your P60s and any dividends taken on top of that, allowing you to borrow more than your salary alone, if needed.

rupertbankstaylor

I've only been on a salary since August 2012, the year before that I was on a tiny dividend, before that I had a hybrid year of working on a 50k salary at my previous employer and then dividends when I set my company up.

What will they be looking to see from the 3 years SA302's?

Just so I understand, are you saying that I can apply as employed, state that I own 26% of that company, and then the mortgage company will be OK as long as I supply these SA302's?

kingstreet

Yes. You are employed, but they will request the data they ask self-employed people to provide.

The one issue you might have is the average. If the lender wants to average your earnings over the three years, you may find you can borrow less. You may need a lender which will use only your latest year's earnings if they show steady increases over the three years.

A lot of this will depend on your deposit, choice of lender etc.

rupertbankstaylor

hmmm ok yeah thats what I was hoping that the lender would just look at the past 18 months. How do I know which lenders might do this? Am I ok to do the DIP to at least check that I can get credit approval, then when it comes to the full application, I can then shop around to see which lenders are OK to do the SA302 1 year view?

kingstreet

I wouldn't.

I'd find yourself a good whole market broker and take advice.

You're likely to end up with multiple speculative credit searches if you aren't very firm with lenders you approach directly.

Too often, they want to rely on "computer says..." where a broker will speak to people and establish what can be done before trampling over your credit file in his size 10s.

rupertbankstaylor

OK and via this method are you saying they won't want to see company accounts? Instead just pay slips and SA302?

kingstreet

Just the SA302s.

rupertbankstaylor

Thanks for your help - I was really hoping to avoid this but looks like this is my only route (rates are much higher via this method)

kingstreet

The products and rates are exactly the same.

If you earn £20k a year from PAYE or have a SE net profit of £20k a year, you'll be able to borrow exactly the same amount from exactly the same lenders, it'll simply be the difference in the evidence of income which applies.

I don't know what you're looking at, but stop looking at it and get professional help.

rupertbankstaylor

The rates will be different because you are saying that some lenders ie the ones with the best rates might take an average of the 3 years rather than looking at my last one which clearly shows I'm earning my salary now. Going through a broker yes they can help to find a mortgage provider that may take me but they don't get access to the cheap rates.

Also the SA320 - what financial period will my latest one show?