Mortgage Issue - broker vs bank

christm_2

There was only 24 hours between the quotes - nothing changes, I gave them the same bit of paper detailing all incomings and outgoings.

That calculator comes up with £192k.

Thanks

Martin

GMS

Do you have children? If so did you declare to both parties?


Any child benefit? Declared to both?

christm_2

Yes, 1 child declared to both.
Child benefit of approx £80 per month declared to both

christm_2

Also - for info:
Mortgage we're looking for is 185k on a 220 property.
My salary is 34,638
Wife self employed - salary is 8,568
80 p/m child benefit.
No loans.
2 credit cards - one with balance of 1512, one with balance of 1097. Both at 0%.Could clear them but mortgage broker said we could get mortgage without clearing them.
Credit check comes back with no issues.

Any thoughts with those details on whether broker is more correct in what we can get or not?

Thanks

Martin

kingstreet

What is wife's net profit from last two years' SA302s averaged?

That's the income Halifax will take into account.

christm_2

After salary paid as shown and re-investment into business, net profit is pretty much 0 or a loss covered by payment into business from directors.
This was disclosed to both broker and bank.

Funny_old_game

That's it then net profit (declared tax) is 0, so £120k mortgage seems reasonable and £192 totally unrealistic.

kingstreet

Whatever drawings she takes, the relevant box on the SA Online tax return is box 30 and that is the net profit; turnover, less allowable expenses, less capital allowances but before personal allowance, tax and national insurance.

She is self-employed and not a director of a limited company, as the taxation would be different, possibly with director's remuneration and dividends?

It's all down to the advisor asking the right questions.

bitmadmax

Perhaps banks view those going through a professional broker as less risky.. after all you are buying a significant financial product.. not like you're turning up at the bank for a small loan

christm_2

Apologies I have confused matters here.
It is a ltd company. 2 directors - 50/50 share split - my wife and I. I don't draw any money out of it. My wife does (the amount mentioned earlier).

Does that change things?

Thanks

Martin