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Source of deposit error...

alexb123
alexb123 Posts: 117 Forumite
Part of the Furniture 10 Posts Name Dropper Combo Breaker
in Mortgages & endowments
Hi All,

We applied for a mortgage with a 20%. We were taking that money from our company as we thought it would be classed as saving as its profit from this tax year. However, its been decline for this reason, that the money is coming from the company.

Will we now be able have any chance of supplying the deposit from a relative? Or are our hopes of getting mortgage now gone?

Thanks in advance for any help.
«134

Comments

  • ACG
    ACG Posts: 24,912 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Is the money going to be declared as a dividend on your accounts?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Let_Us_See
    Let_Us_See Posts: 1,319 Forumite
    There is nothing stopping a relative gifting the deposit and despite the decline you may be able to use the existing application.
  • alexb123
    alexb123 Posts: 117 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    ACG wrote: »
    Is the money going to be declared as a dividend on your accounts?

    Thank you for the reply.

    Yes, but in this tax year. I think that might be the problem but I'm not fully sure.
  • alexb123
    alexb123 Posts: 117 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    Let_Us_See wrote: »
    There is nothing stopping a relative gifting the deposit and despite the decline you may be able to use the existing application.

    Thank you thats good to know. Its not an option I want to take but having an option really helps :)
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    alexb123 wrote: »
    We were taking that money from our company as we thought it would be classed as saving as its profit from this tax year. However, its been decline for this reason, that the money is coming from the company.

    This early in the tax year it could be viewed as earnings. As your actual income is yet undermined unless you've evidence to the contrary.
  • ACG
    ACG Posts: 24,912 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Who is the lender?
    Are you applying through a broker? I imagine with some discussion this should not be a problem.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • amnblog
    amnblog Posts: 12,784 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You have hit a classic issue with deposits.

    Some Lenders can get comfortable if your Accountant confirms the withdrawal of cash will not hamper the business.

    Some Lenders will not entertain deposit funds from the business.

    Technically, nothing to stop you using a gift instead, but that does not mean the lender you have selected will accept it.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • alexb123
    alexb123 Posts: 117 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    ACG wrote: »
    Who is the lender?
    Are you applying through a broker? I imagine with some discussion this should not be a problem.

    L & C are the broker and Skiptons the lender.
  • alexb123
    alexb123 Posts: 117 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    amnblog wrote: »
    You have hit a classic issue with deposits.

    Some Lenders can get comfortable if your Accountant confirms the withdrawal of cash will not hamper the business.

    Some Lenders will not entertain deposit funds from the business.

    Technically, nothing to stop you using a gift instead, but that does not mean the lender you have selected will accept it.

    Okay so they might consider that the money won't be a problem to the business. Thats good. The business is doing really well. It just a shame that doesn't so far appear to count for anything. Only the last 3 years return and all that :)
  • amnblog
    amnblog Posts: 12,784 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Then L an C should know better quite frankly.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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