Santander Mortgage App trouble ahead

newbie_emma

Hi everyone

Some advice needed please!! I'm on pins!
Applied as a FTB to Santander, got the AIP via our broker at weekend (online in minutes) and full app went to them on the 10th. We got an email from our broker saying it's gone to underwriters, is this normal practice or a sign of trouble ahead??
Our application is a tricky one, OH (single application) has good credit but is self employed and 50, we went for 19 yr mortgage term with £20k deposit against a house for £123,000. We've got £47k savings, averages about £27k normally hovering in the current account and certificate from accounts saying we've got Ltd due to regular contract work pushing income up to £52/£53k a year and turnover of £105k. (previous tax returns show only about £18k net profit).
We know we can afford it however I've been reading a lot of horror stories about Santanders extremely strict lending criteria and internal policies and I have a gut feeling we won't get our application approved!!
Lord knows how long we're going to have to wait for a decision, and our commercial vendor wants to exchange in 21 days :mad::mad:

kingstreet

If this is Ltd Co, what are his director remuneration and dividend figures for the latest two tax years?

They are the only relevant figures in the circumstances.

If any of the deposit is coming from you and you will reside in the property but not be party to ownership nor mortgage that will be a problem, but won't get picked up until solicitor stage later.

newbie_emma

Thanks for your reply! He only went Ltd 3 weeks ago when we got an accountant in to do our books, he's been a sole trader for 25 yrs. we didn't realise we'd gone over the vat limit so didn't even register on time (accountants are sorted all that out for us but we don't have a vat number yet). We we're asked to provide 3 months bank statements ID etc and an accountants certificate along with SA302 which we've done. Our broker processed him as sole trader because he Ltd was still being set up ?? I'm not contributing financially to the purchase wil this still be a problem x

kingstreet

Ok. So what were the net profits from his SA302s in the last two tax years? Lenders take an average.

As long as the deposit is not coming from you, nor from an account in your name or joint names, it will be fine.

newbie_emma

That's a relief, all the money is in his accounts etc so it's all from him! This is the trouble, we claimed every expense we could (legally) which makes the net profits look low. One shows £18,000 (12 to 13) the next shows £16242 (13 to 14) and the next shows £52484 (14 to 15). They've done some projections as well but don't think they'll be considered and wrote on their certificate that current monthly average income is £5k but when everything is averaged out income is low

kingstreet

You can only hope they use the Accountant's Certificate to base lending on the latest year only then.

newbie_emma

Hope so! Got my everything crossed...