Lenders that use 1 year's accounts for SE AND offer 95% LTV mortgages

neo2020

Hi guys,

A bit of a tricky one and I've got my mortgage broker looking into this as well.

Which lenders if any are willing to:

1) Use last year's accounts (me and wife are both self-employed) rather than a 2-3 year average; and
2) Offer 95% LTV mortgages; and
3) Would offer a multiplier of 4-4.5

For background:

- We both have good credit ratings.
- The mortgage we are looking for is 190k on a 200k property.
- We are both SE and joint income is 40-45k
- Reason we need a lender that uses last year's accounts is that I had a bit of a slow year in 14/15, so a 2-year average would drag us down too much.
- Repayments are well within affordability on both 25 and 30 year options.

Thank you very much in advance.

Thrugelmir

neo2020 wrote: »

- Reason we need a lender that uses last year's accounts is that I had a bit of a slow year in 14/15, so a 2-year average would drag us down too much.

Attempting to conceal information will do you no favours. Either to obtain a mortgage or personally.

neo2020

Thrugelmir wrote: »

Attempting to conceal information will do you no favours. Either to obtain a mortgage or personally.

Not sure how you came to the conclusion that we're trying to conceal information.

From my understanding, all lenders would want to see at least 3 years' accounts, it's just some use a 3 year average to decide your "actual" income, some use a 2 year average and some will go with last year as long as it's higher than previous years.

In all of these scenarios, they would see accounts for all 3 years which we would obviously provide.

ACG

Theres only 1 lender I know of, maybe one other who would do it. Rates are not particularly great - around 4.5%, but it would get you what you want.

Get in touch with a broker, they should be able to help.

kingstreet

FWIW lenders who accept cases with one year's accounts are for people whose firms have been trading for one year.

Needing a lender which will take only the latest year's figures and not an average is a different kettle of fish and the lender pool is different.

If you have a broker, they will be researching the available lenders and ensuring you meet their criteria. Brokers on here can't suggest lenders to you and TBH wouldn't do so as your broker should do his own legwork.

neo2020

ACG wrote: »

Theres only 1 lender I know of, maybe one other who would do it. Rates are not particularly great - around 4.5%, but it would get you what you want.

Get in touch with a broker, they should be able to help.

My broker's view is it's "highly unlikely".

I also found a company online which advertises mortgages for self-employed people, who referred me to someone called Create Finance who said it's perfectly possible... but their fee is 5k unless you take one of their insurance products. I understand I'll be getting ripped off on the interest rate, but being ripped off by a mortgage broker as well is a bit too much.

The lender you know... would you mind PMing me the name so I can explore or get my broker to?

ACG

£5k in fees! Who is the lender? I would be interested to know if I am sending business to a company who is recommending a broker.

Sadly im not allowed to mention lenders. I would find another broker as personally I think it is possible, although your broker does have more information that we do on here. I think as Kingstreet suggests, your broker is looking for the wrong thing and there is normally more than one way to skin a cat...so to speak.

kingstreet

If your Accountant's certificates will show a steady build up and no wild gyrations, I can think of one high street lender which will use the latest profit figures rather than an average.

Best using Accountant's certificate as it can be downloaded from the lender's website and passed to the Accountant so the broker can get it back and check it with their BDM before submitting an application.

If limited company and not using Acct's cert, lender does Equifax business search after seeing Accts or SA302s and we've had cases declined due to the results.

Your broker should be able to establish this lender is or isn't a possibility very quickly if he reads the above. Unless of course there is another reason why this lender has been discounted.

mitch44

We have had the same. The hubby's previous years books were a lot lower and therefore all lenders were averaging which meant a £5000 drop in his wage. I know that Santander will use last years books together with a prediction from your accountant and also the Coventry use last years books. They will want to see all of the previous years though

neo2020

Just by way of update, we now have a DIP via MA from Santander. They will lend on last year's figures but wanted to see tax details for all 3 years.

We re-examined our finances and were able to stump up a 10% deposit, but MA was comfortable that we could still get the mortgage with a 5% if we needed to.

Santander asked for clarification of why the dip in the middle year happened and MA seems to think they will be happy with our explanation (both wife's grandparents passed away + mother diagnosed with cancer all in the space of 18 months spanning the tax year!!!).

Full mortgage application going in in a couple of days and MA has said they are usually very fast. Got everything crossed as we found a lovely property which we negotiated down by £5k.

kingstreet

neo2020 wrote: »

Just by way of update, we now have a DIP via MA from Santander.

Hallelujah!

The very one I was hinting at.