Can't find a lender

Funny_old_game

Deposits the least if your worries, your income is.

When they check companies house which is a standard check, they'll ask for all your years income whether at a loss or not. Not just the most recent good looking one if you were planning on going down this route.

Give the brokers something to work on to give you guidance, whats the last 3 years declared income to HMRC for you?

M_e

Funny_old_game wrote: »

The fact is here the poster has 3 years figures not one year from the first post.

No specialist lender needed, they probably have very low declared income in the first two years, hence why lenders want 3.

This is exactly the situation. But as most lenders want to take 3 years added together and divide by 3 (to get the mean) I need a lender who will base the loan amount on the most recent years' accounts.

Funny_old_game wrote: »

If the income has been going up, great, just make sure it goes up more ready to buy in the summer next year.

I have over 3 years accounts. If I look at the previous 3 years (as year 1, 2 and 3), year 1 is low and so is year 2. Year 2 is slightly lower than year 1 as my Rent increased. Year 3 (ended 5 April 2014) is much higher than year 1 and year 2 as I took over my bosses business. Being an Accountant I have a client base set up. It's not like I'm a builder looking for the next job. I already have x amount of clients. In terms of No. of clients my work has increased every year. However profit dropped very slightly between Year 1 and 2 because of a 20% rent increase (before I could move to a property with a more suitable rental) and due to costs involving in taking over another business. It's very frustrating that lenders can't look at you as a human being and not as a statistic on a computer. I have the same problem with insurance. The previous car I owned was insurance group 18 out of 20. I bought the car at the age of 21 and was considered a huge liability despite having no accidents/points/convictions and 4 out of a possible 4 years NCB. Even at 26 I was still being completely shafted for insurance with 9 out of a possible 9 years NCB and no accidents/points/convictions. Although I think insurance companies are even worse than lenders. My insurance doubled last year as apparently more people in my area were claiming whiplash... (probably to compensate for the high insurance they get charged)

Funny_old_game wrote: »

Your energy to get a loan is good but set your expectations also that it may not happen.

Thank you, I do understand that it's important to not get your hopes up, but I am 100% confident that I will get a mortgage in the coming months :www:

ACG

M_e wrote: »

I'll speak to a broker thanks.


Are you not even allowed to pm me the lenders who might lend based on 1 years' SA302?

No, as it could be seen as leading you to a lender who would not accept your circumstances as a whole.

A broker will get everything down and should have a good idea who to go to... thats not me saying there is a home for this as i genuinely am sitting on the fence but there could be one or 2 options.

M_e

Funny_old_game wrote: »

When they check companies house which is a standard check, they'll ask for all your years income whether at a loss or not. Not just the most recent good looking one if you were planning on going down this route.

I am not a Ltd Company and therefore have no connection with Companies House.


Coventry are happy to base the loan amount on 1 Years SA302 (from HMRC) but do want 2 years SA302's for their records (but the loan amount is purely based on the most recent year, so 3.6x profit of the final SA302)

M_e

ACG wrote: »

No, as it could be seen as leading you to a lender who would not accept your circumstances as a whole.

A broker will get everything down and should have a good idea who to go to... thats not me saying there is a home for this as i genuinely am sitting on the fence but there could be one or 2 options.

Ok, I don't fully understand why you can't, but I understand that if your hands are tied then there's nothing you can do :cheesy:

GMS

How many square metres is the studio?

thequant

M_e wrote: »

I am not a Ltd Company and therefore have no connection with Companies House.

I think this could be your biggest stumbling block, I started my business last year and managed to secure a mortgage despite not having even one years worth of accounts.

TheCyclingProgrammer

M_e wrote: »

As said to someone else, I appreciate that most lenders won't accept it as a deposit, but the lenders won't be informed. Think of it as my parents taking out a loan to give me the money I need for a deposit as a present. The money is actually secured against their house and is incredibly low interest (it is all in their name).

Then you're essentially saying you plan to fraudulently claim your deposit is a gift? Good luck with that.

You won't get far without a letter stating the money is a gift and doesn't have to be repaid.

M_e

GMS wrote: »

How many square metres is the studio?

I think they're 5.5m x 4.5m so about 25 square metres.

Yorkie1

TheCyclingProgrammer wrote: »

Then you're essentially saying you plan to fraudulently claim your deposit is a gift? Good luck with that.

You won't get far without a letter stating the money is a gift and doesn't have to be repaid.

I agree. Great, isn't it, an accountant planning fraud in order to bend the rules to get what s/he wants.