Contractor Mortgage application

originalRS

I am director of a Ltd company and have been mortgaging with Halifax for the last few years as a contractor. My current mortgage broker have been approached to remortgage.

My wife has her own business as a PA (sole trader) and also gets a salary and dividends from my Ltd company and she is a shareholder.
The broker are insisting that she puts down "houseperson" on the application", and are discounting her earnings.

Since I feel this is not only untrue, but could also affect our "stress test" result I am not keen to falsify the application in this way, on their advice. They are saying the application has to be presented this way at the lenders request. How can that be right?

amnblog

It is right if it gets you the loan quicker and easier.

originalRS

Even if it is false? What if an issue comes up and the mortgage lender tell us to go away because we didn't declare my wifes earnings? What if the stress test fails because they don't know about the other incomes?

kingstreet

You do not enter income you do not need for affordability.

If you are using your gross contract value you can't include your wife's earnings from your firm as they are already accounted for.

As to her own SE earnings, if they aren't needed you don't enter them.

This is routine.

originalRS

Answer now supplied. Why the **** he could not have said this 2 weeks ago is beyond me.

[FONT=Times New Roman,serif][FONT=Calibri,sans-serif]Happy to explain.[/FONT][/FONT]
[FONT=Times New Roman,serif][FONT=Calibri,sans-serif] [/FONT][/FONT]
[FONT=Times New Roman,serif][FONT=Calibri,sans-serif]If we were utilising the lenders standard policy and criteria we would present you and Wife as both self employed, and evidence your earnings by way of the company accounts for the last 2/3 years with salary and dividends or net profit split on your percentage shareholding.[/FONT][/FONT]
[FONT=Times New Roman,serif][FONT=Calibri,sans-serif] [/FONT][/FONT]
[FONT=Times New Roman,serif][FONT=Calibri,sans-serif]For this application we are utilising the bespoke contractor policy and therefore using a day rate calculation which evidences 100% of the income earnt through the limited company (including the 30% shareholding of wife) which is all attributed to yourself as the contractor.[/FONT][/FONT]
[FONT=Times New Roman,serif][FONT=Calibri,sans-serif] [/FONT][/FONT]
[FONT=Times New Roman,serif][FONT=Calibri,sans-serif]We are happy to present SA302’s for the additional self employed income earnt by wife– however if we present income from the 30% shareholding it will negate the contractor policy for the lender and your application will have to continue on normal policy.[/FONT][/FONT]