Any chance of Getting this Mortgage?

delirious

Just a thought...

Putting aside the fact that my wife works for a ltd company owned by me, what usually happens when someone goes from working part time to full time? Do the banks take an average of the last 3 months pay slips or do the process the application as if the person is still on the lower of the two wages?

GMS

You cant put the fact that your wife works for you aside as the lender won't.

Your wife will be asked to provide payslips and corresponding bank statements showing salary credits along with latest P60. Any increase in salary will need to be explained.

They may request accountant verification too.

The lender may accept the explanation or see it as a ploy to obtain a mortgage.

I assume you pay her salary via bank transfer?

delirious

GMS wrote: »

You cant put the fact that your wife works for you aside as the lender won't.

Your wife will be asked to provide payslips and corresponding bank statements showing salary credits along with latest P60. Any increase in salary will need to be explained.

They may request accountant verification too.

The lender may accept the explanation or see it as a ploy to obtain a mortgage.

I assume you pay her salary via bank transfer?

Hi GMS. I wasn't meaning to put it aside on the mortgage application, I just meant for the sake of this discussion because I'm trying to work out what pitfalls we might face.

The reason I asked is because using the Halifax Mortgage Calculator, I can get a £111k mortgage based on my wage alone. If I put my wifes wage as £6k (her old part time wage), it goes down to £56k based on 2 applicants.

Accountant verification won't be a problem as I have no intention of being dishonest on the application.

Yes, wages are paid via Bank Transfer.

ethank

Not being funny, but I think a lender will want to see proper accounts - not a an accountants opinion...

GMS

ethank wrote: »

Not being funny, but I think a lender will want to see proper accounts - not a an accountants opinion...

Accountant prepares the accounts so their verification of income should suffice.

Average lender underwriter wouldn't understand the accounts.

ACG

An increase in wage is not a problem under normal circumstances. The lender would want to see the statements and may request an employers reference.

This is not normal circumstances though so it would really come down to the lender and the underwriter as to what evidence they would want to see.

delirious

GMS wrote: »

Accountant prepares the accounts so their verification of income should suffice.

Average lender underwriter wouldn't understand the accounts.

I guess I need to get the year end accounts up to date then.

ACG wrote: »

.. This is not normal circumstances though so it would really come down to the lender and the underwriter as to what evidence they would want to see.

hopefully our mortgage advisor will be able to pull it off but I'm starting to think we're not likely to get this.

ACG

At 75% LTV there could be a lender, but i would be very surprised if you could get a high street lender to consider it.

It may just be a case of getting some accounts submitted asap, which if you have a decent accountant could be done within the week... although January is busy season for them generally.

Im would imagine this will be one for a smaller lender, with rates probably closer to 5% rather than 2.5-3% you would find on the high street.

See what your broker comes back with, the deposit is definitely in your favour, if you can get some accounts filed then you have 1 years accounts should the lender need them which boosts your chances further.

delirious

Thanks again for all your advice ACG. I will get the accounts finished asap so our accountant can submit the accounts to companies house asap.

In terms of company finances, how profitable would the company need to be to hopefully please a mortgage lender? We based my wifes wages for the coming year on how much profit the company made in the past year.

delirious

Just a quick update. I have spoken to my accountant today and she said that if I can get the accounts over to her for Monday, she'll get them submitted to companies house next week.

How profitable would the company need to be for a mortgage lender to accept that an £18k salary is sustainable? (just so I know whether I'm flogging a dead horse or not).