Source of deposit error...

amnblog

If the broker does not get proof of deposit before application these confusions do happen.

If L and C had asked you to prove income, you would have mentioned the company funds and this could have been pre-emptied.

alexb123

Very true and its a very simple check.

alexb123

Reading up on this, is this possible? We just get the accountant to treat the money as a salary? That was it belong to mortgage payer and not the company.

We can also if needed reduce the 20% deposit down, I think 10% was required.

csgohan4

ACG wrote: »

Pretty sure Skipton will do this with a letter from your accountant as amn suggests.

What is very worrying is that L&C never checked before applying. As the saying goes, if you pay peanuts....

Or lack of peanuts

amnblog

alexb123 wrote: »

Reading up on this, is this possible? We just get the accountant to treat the money as a salary? That was it belong to mortgage payer and not the company.

We can also if needed reduce the 20% deposit down, I think 10% was required.

No Alex, it is not about treating the money from your Limited Company as salary.


A Lenders view will be if you are taking £xxx in cash out of your business so close to your purchase to provide the deposit on that purchase, can the business manage that hit on cash flow.


If losing £xxx in working capital puts the business profit at risk going forward, that is clearly a concern in assessing your risk.
That is the same whether you take the funds as 'salary' or 'dividend'.


Lenders can sometimes satisfy this concern by asking your Accountant to confirm that the withdrawal should not impact the ability of the business to trade profitably.

alexb123

Yes thats understandable. And hopefully they will look and see the business is fine with it. Fingers crossed.

alexb123

Small Update

L & C are reapplying for an Abbey mortgage as they accept the money coming from the company. We are also getting the account on a letter, which should have a lot of evidence that we can afford this money.

However, I have two questions it would be grate for some feedback again

1: Can we make more than 1 application for mortgage at a time? We might try the company bank HSBC as we already had a meeting with them.

2: We now have an intro pack from Skiptons so we have an account and contract number. Is it worth phoning them? L & C informed us that they do not do this type of mortgage. Is it still worth a go?

Thanks

amnblog

1. I had an enormous row with a Lender a couple of years ago that declined a case because deposit was coming from Limited Co, even though the Accountant confirmed it was not going to cause the business a problem. no prize for guessing who that Lender was.

2. Never run two applications at once. If you are not confident with L and C having let you down once, use another broker.

alexb123

Amn did they overturn the decision?

ACG

Have they even attempted to get this back on track with skipton?
I would be VERY surprised if this can not be done skipton. Whilst it is not exactly the same I have a similar case which was accepted with them just 2 months ago.

Its not a good idea to have more than 1 application on the go, it will also result in 3 credit checks in quick succession which is not a good idea.