Low LTV but no-one will take my application

nickonion

Im a director of my company, with a 50% share. I currently have a mortgage with Santander. Im looking to move, but keeping the same amount on the mortgage. Santander say I need to be considered as a new customer...so...

They say they need: 1) Business accounts signed by registered accountant, or
2) SA302 for 3 years


I cannot get either....
1) My accounts for my company are prepared by a retired accountant.

2) I have not done Self Assessment as I fall under the income threshold at which I am required to do it.


After 4 weeks discussions with them they say I cant get a mortgage or port my current mortgage with them. Therefore I need to pay the substantial early-replayment charge and go elsewhere....


Will anyone else take me? I've searched the market with the help of a mortgage advisor and we couldnt find a lender who would take my application.


Here is the kicker... I would have a LTV of 19%!!!! Im absolutely no risk to the lender. BTW... I have great credit, no other loans, consistent good income from my business etc.



Can anyone help? Is there a lender out there who would lend to me on LTV alone?


Thanks in advance

GMS

How much do you want to borrow?

How much do you take as salary and dividends?

nickonion

Im after £83k loan.
I take £8k salary and £31k divs.

AndyT678

Would it not maybe be easier to take your already prepared accounts to an non-retired accountant and get them signed?

nickonion

Certainly would be easier if I had a certified accountant sign them.
The accountant must have "Prepared the books and/or accounts of the business". Does that mean I now need them to re-write all the accounts for the last 3 years?

Its a lot of work and a long way round.... suppose it will cost less than my early repayment charge tho!

Wh05apk

If you are a ltd company then the accountant has to be qualified so should be able to sign them off.


You should also be submitting tax assessments as your income is £39k


It sounds to me like your accountant is doing something wrong here, no lender will accept you without accounts or proof of income.

Leon_W

Quite Wh05apk. Why can you not get SA302s ? Paying tax or not you should be filing returns.

nickonion

Thanks guys. Not sure I agree really though...

As a limited company you can submit your own accounts. You dont need to be a certified accountant to do so.

Not being a director, just a shareholder I dont need to complete the Self Assessment.... hmrc.gov.uk/sa/need-tax-return.htm - I dont fall into any of the criteria. (Its over £41,450 when you need to)

.... my question was not on those points tho.

Surely at a LTV of less than 20% any lender should accept me regardless. There is ZERO rick to any lender. Its common sense.

Leon_W

Your first line in your original post says that you are a director !


In your last post you say that you can submit your own accounts and don't need to be a certified accountant. This is true. If you've done this then SA302s would be available.


A lender CANNOT accept a mortgage application without proof of income and will not take you on "regardless". No income, no mortgage.


I'm sorry but I don't think you're being straight with us here.

Thrugelmir

nickonion wrote: »

Not being a director, just a shareholder I dont need to complete the Self Assessment....

Surely at a LTV of less than 20% any lender should accept me regardless. There is ZERO rick to any lender. Its common sense.

Then your contractual income is only £8k a year. The dividends are only paid if (a) the Company declares them (b) The Company has sufficient reserves or makes sufficient profit to pay them. Your dividends are non guaranteed income.

Im a director of my company, with a 50% share

However this is contradictory.

My point about contractual income still stands to a degree.

AndyT678

If your retired accountant buddy is properly qualified but has just let his ICAEW or ACCA or whatever membership lapse why not just pay his subs for this year then he can sign off without any extra work.