company director and mortgage

amnblog

Just wondering if you have a normally tricky lender, or one we regularly use for the self-employed.

Batchy

Tax efficient payments out of a limited company are great for your reduced tax liability, but are a liability when it comes to a mortgage

TheCyclingProgrammer

Batchy wrote: »

Tax efficient payments out of a limited company are great for your reduced tax liability, but are a liability when it comes to a mortgage

Unless you find a lender that will lend based on your company net profit. They do exist.

Its true though that it does reduce the pool of potential lenders.

ConfusedLady

Well I'm back and despite getting the accounts signed by a charted accountant and forwarding the SA302 for the tax year ending 05/04/2014 they are still sending that they can't accept the tax return for this period without the accounts for FY14 to correspond to this SA302. FY14 accounts not due yet!!!
The accountant produced a simple spreadsheet showing FY year and dividends per tax year that related to which FY year and also wrote a letter explaining when dividends were taken and which tax year they fall into yet still they don't understand!!!

ConfusedLady

OH been speaking to broker this afternoon and broker gone back to Mortgage company and they are still saying without the accounts for 2014 the SA302 for period ending 05/04/2014 is in admissible.
We have provided accounts for the period ending September 2012 and September 2013 countersigned by a chartered accountant and SA302 for period ending 05th April 2013 which shows the dividends declared September 2012 and the SA302 for period ending 05th April 2014 which shows dividend taken September 2013.
Also sent an accountants letter as requested countersigned by a chartered accountant confirming dividends and salary for both tax years.
The broker is going call them tomorrow to try and persuade them them to accept the latest SA302.
What if the broker cant persuade them? Also what is there to persuade other than the fact that there is a difference between tax year end and financial year end?

mrh

Hi,

I'm in a similar position - our Y/E was October 2013, but these accounts are yet to be completed and filed etc.

But the lenders want a signed-off copy of the 2012/13 accounts (and the 2 previous years).

They won't accept SA302's etc etc. (HMRC currently quoting 3 weeks to produce them! Requests for faxed copied denied as "not an emergency".)

It can't be anything in the accounts that scares them, as we've never made it that far! (We've been trading since 1993)

If I owned less than 20% of the shares it seems it would be much easier.

People who work for us have successfully applied for 95% mortgages with government assistance. We're after 45% and it seems to be virtually impossible.

It looks like we may miss out on purchasing this house as we're struggling to find a lender who is happy to talk to us and the accountants aren't scheduled to finish our accounts for about 4 weeks.

Hopefully the lenders will see sense. One lender told the broker in a face-to-face meeting that our accounts would be ok, but central processing have rejected them!

The more lenders we try, the further we a getting from our preferred rate and deal.

It's all a bit of mess. Hopefully it'll stabilise quickly and some common sense will be applied. We can dream....

Would be interested to here the experiences of anyone else in a similar situation.

It is no consolation, but it feels better knowing that it's not just us!



Matthew

GMS

Matthew which lender is asking for this? Santander?

Has your broker explored options properly?

At 45% with many years of accounts (assuming all ok) and affordability being met there should be lenders (subject to criteria of course)

If you get nowhere engage another broker

mrh

Thanks GMS,

We approached 2 brokers, who both recommended the same 2 deals. Got a better "feeling" about the broker we selected (and some recommendations).

The lenders so far (that I can remember):-

Coventry BS
Woolwich
Nationwide

Will see how tomorrow goes, then make some decisions how to progress.

ConfusedLady

Well we managed to speak to the underwriter and after a lengthy phone conversation and being put on hold several times. They now understand that the SA302 for tax year ending 05/04/2014 relates to the accounts ending FY13 and that we wont have accounts for FY14 yet and therefore now say they are happy to process with our mortgage. It appears they didn't quite understand the situation and the broker wasnt confident in explaining it.
Good luck Matthew

kingstreet

ConfusedLady wrote: »

the broker wasnt confident in explaining it

Oh boy, that instills confidence...