Sa302

hits76

Hi everyone. I think this is a question for the brokers on here but I would be grateful for any advice received.
I'm a ltd company director owning 100% shares. I'm aware that some lenders (such as Santander) will accept SA302 as proof of income. Most of these come with a caveat of 'we reserve the right to request company accounts'. I'm very reluctant to provide accounts - my question is how likely are they to request accounts if the application is in order and I have a clean credit history?

ACG

In 3-4 years I have only ever seen a lender request accounts twice and both of them were due to a specific reason which we knew about before applying as I spoke to the underwriters in advance.

In short, unless there is a specific reason they would need accounts, it is unlikely they would request them.

Do you mind me asking why you do not want to provide accounts? Other then being nosey, it might also help us to work out if it is likely it would be picked up.

Thrugelmir

Lenders can access the accounts that are filed on public record with Companies House. Alternatively use a business credit agency such as Dun & Bradstreet to access a "score" for same.

hits76

Thank you both for the helpful responses. It's probably silly but I just don't feel comfortable giving commercially sensitive data over to a complete stranger. I have nothing to hide.. honest!

kingstreet

If you submit only SA302s to Santander (they much prefer an Accountant's Certificate you can find here;-)

https://www.santanderforintermediaries.co.uk/downloads/1044

they will underatake an Equifax business search on the company.

hits76

kingstreet wrote: »

If you submit only SA302s to Santander (they much prefer an Accountant's Certificate you can find here;-)

they will underatake an Equifax business search on the company.

I assume the business search would be a credit check? Would you agree that SA302's alone are usually sufficient for income verification?

kingstreet

I would agree that if that's only what the lender requires.

Santander prefers an accountant's certificate and may request one even if you submit the correct SA302s/SA Online Tax Calcs plus Tax Year Overviews.

No, the Equifax search is a detailed business check and we had a case declined due to some information they picked up they couldn't see from SA302s.

hits76

There is one issue that may be a problem with submitting accountant certificates and accounts. My company net profit is reduced by 50% due to amortisation of goodwill and therefore distributable dividends are also reduced by 50%. Does anyone have experience of this? Will lenders add back the amortisation to obtain the true net profit or will it just be 'computer says no'?