Halifax requesting year 2 income forecast and sustainabilty?

sacha1dog

I am in the process of applying for a relatively small LTV mortgage of 30%.

self employed. accounts submitted.

The underwriter is requesting that I supply a forecast for this new financial year, plus a note relating to sustainability of that income.

they want my accountant to write it. however my accountant, obviously, has no idea what my income will be for the year, in the same way that I do not either. The Institute of Accountants also prohibit them providing such information.

I can give a sales forecast, and comment on sustainability.

anyone seen this crazy question before?

kingstreet

How many years accounts did you submit and what is the profit trend like over that period?

sacha1dog

1 years accounts.

Profit trend is strong, and growing over that period.

whilst self employed, I am actually representing a major US based company who I have had dealings with for over 15 years. so there is a demonstrable history there.

I can provide my own forecast, which at worst is the same as this last year. but an Accountant won't do it.

Wh05apk

Halifax seem to be doing this a lot lately, their criteria allows one years accounts, but subject to underwriting, I can understand if everything is marginal, but if the accounts are strong, with a low multiple and low LTV, I think it is just the underwriters flexing their muscles.

sacha1dog

the multiple is, my annual income is 50% of the total loan amount.

hardly any debt commitments, and no defaults.

sacha1dog

the Halifax are "upset" that my accountant will not provide a sales forecast..

1. Accountants are not prepared to do it, understandably, because how can they know what my sales this year will be, I don't..
2. Halifax have now asked for my contract which I have submitted.

what is the point? it seems to me to be simply ticking the box.