New mortgage application

Mark2788

Once you are approved for a mortgage is there anyway the lender can turn around and stop that mortgage application for any reason? And as self employed they ask for sa302s which I've gone through in the application process over the phone but might have to send sa302s off to them but would they also want statements/accounts on top of that? If for some reason you didn't have your statements could they just use sa302s? Thanks

David_White

Technically you're not out of the woods until the mortgage completes.

They may well ask for bank statements as well as SA302's, each lender is different in this respect.

If requested and you don't have them you'll need to either get them online or order them from the bank. There is no valid excuse for not providing bank statements when requested.

Mark2788

O rite ok then, thank you, how long after you get approved does it take on average to complete? How do they check them, are they seeing if the turnover is right etc or do they check it like an accountant?

David_White

The time between formal offer and completion will largely be down to your Solicitor and the people you're buying the property from.

I've had cases go from offer to completion in 2 weeks whereas others have taken 6 months+

Depending on your setup a lender will generally be looking at the "total income received" figure on your SA302 however this may differ depending on which lender you've gone to.

kingstreet

Depending on lender, you can be asked for;-

one SA302 or tax calculation PLUS tax year overview showing tax paid

two SA302s or tax calculations PLUS tax year overviews showing tax paid

three SA302s or tax calculations PLUS tax year overviews showing tax paid.

And/Or

You can be asked for one, two or three years accounts signed by a qualified accountant (ACA, ACCA etc)

And/Or

You can be asked for an Accountant's Certificate.

Finally, lenders also reserve the right to ask for multiple months' personal and business bank statements and even a current year projection from your Accountant.

This is not an exact science. Using Santander as an example, if you submit SA302s/Tax Calcs/TYOs when a limited compeny and not the Acct's Cert, they run an Equifax Business Search which can result in a decline if the business appears to be struggling. This has happened to us.

Mark2788

Ok that's the mortgage approval that can take 2weeks? I know the whole house buying process can go !months if done well but is that cut off for mortgage completion as well? I thought if mortgage is approved then that part of the process is done?

Ok so if they see generally that the income is close enough or exact to the figure they first receive that is good enough? If there was any differences would they let you know so you could fix it before they declined , I mean if the figures were only slightly different?

David_White

I know it's easy to say this after the horse has bolted... but why have you applied for a mortgage without knowing your figures?

Providing incorrect income figures isn't necessarily a deal breaker but it's not exactly going to cover you in glory either.

Mark2788

I was wondering what would happen if it did happen, I don't think that it is wrong but wanted to see if you can change it if there are figures that aren't exactly right? I know if there was anything wrong it'd be bad but if you could just change it correctly I can't see a problem?

Mark2788

What if they ask for auditted accounts but you don't use an accountant? But can provide bank statements that show all income received and outgoings?

Bippityboppity

We used Natwest and had to supply 2 years SA302's, plus our accountant had to provide projected figures for third year (in the end the accountant had to bring our year end forward by a month to create a third SA302) plus all bank statements (both personal and business, letter from accountant to confirm no finance agreements, and letter from accountant to state after dividends paid the account wouldn't be in minus figures this year. So we definitely couldn't have done it without an accountant. How far along in the mortgage process are you? Have you had the mortgage offer actually confirmed in writing? If not I would prepare for the fact underwriters will look at your accounts quite forensically and will cross reference and ask for proof of transactions and bank statements will have to be provided.
Our mortgage took 3 weeks to be approved and offered then another 3.5 weeks to exchange, then a further week to complete. And didn't relax till those keys were in our hands!

Mark2788

Still quite early and now doesn't look good because I haven't had proper accounts mainly used bank statements