Mortgage Declined

PaulC5

Lender (Santander) has just rejected our mortgage application due to my companies equifax report showing 'Adverse Performance Figures'

I am in effect a one man band and have no out goings other than the normal VAT, Corportation Tax, National Insurance etc the rest is paid to me split between dividends and salary.

The business has never had any borrowing other than a credit card for the first 12 months that was paid off in full each month.

I cant work out what the problem is because what is earnt by me after VAT and TAX's is mine.

Really peed off and cant see how I can get a report from Equifax to see what these 'Adverse Performance Figures' are that they can see.

ACG

Not something I have ever come across before, but im sure there will be other lenders. Santander are not known for being the most lenient of lenders.

kingstreet

Are your profits falling year-on-year?

PaulC5

kingstreet wrote: »

Are your profits falling year-on-year?

Profit on year has increased but only 3 years accounts available with the 1st year being only 3-4 weeks trading.

PaulC5

Im just wondering if this would make a difference.

I only supplied my SA302 forms for the last 3 years and put that I am employed by my business.

Would it of been better if we put the business end of year accounts instead so they can see the whole picture or does it not make a difference?

Thrugelmir

PaulC5 wrote: »

with the 1st year being only 3-4 weeks trading.

That doesn't constitute a year. Certainly an insufficient time frame on which to base any decision.

PaulC5

Thrugelmir wrote: »

That doesn't constitute a year. Certainly an insufficient time frame on which to base any decision.

Sorry I was thinking Tax years.

Go and troll somewhere that someone else cares if you haven’t got anything productive to say.

kingstreet

I'm not familiar with the report in question, so I'm speculating on the information it might contain.

PaulC5

Just a little update

The only thing myself and my accountant can find that would be negative on my business credit score would be a late filing/payment penalty for corporation tax which was brought to our attention in January this year.

It turns out it was for dormant period right at the beginning when I set my business up before I got my first contract so nothing was actually due.

We have received only in the last 2 weeks confirmation from HMRC that the penalty has been reversed and cleared of any penalties.

What we are guessing is that the credit report/score hasn't yet updated to show this but would this be classed as an 'Adverse Performance Figure' in the lenders eye or do they just make terms up as they go along and it could mean anything?

PaulC5

Anybody think this could be the issue? ^

tvfreek

Hi Paul - have you been able to speak with Santander to find out where they are getting this information from?