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Company director - dividend as deposit
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acao2djr
Posts: 5 Forumite
I currently have a mortgage app going through Santander, have gone through DIP and valuation has been done (before underwriting for some reason?)
I have taken a dividend from my company to use as deposit (from profits, not a directors loan or anything like that) however now the app has got to the underwriters they have said they can't use dividends as a deposit!
My MA never mentioned this before submitting the app, is this normal with Santander? Anyone know if any other lenders accept dividends as deposit?
Waiting to hear more detail from MA when he's back on Tuesday
I have taken a dividend from my company to use as deposit (from profits, not a directors loan or anything like that) however now the app has got to the underwriters they have said they can't use dividends as a deposit!
My MA never mentioned this before submitting the app, is this normal with Santander? Anyone know if any other lenders accept dividends as deposit?
Waiting to hear more detail from MA when he's back on Tuesday
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Comments
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Ive used a dividend as a deposit with a few lenders. Never had any problems, but I have never tried with Santander.
I can not see anything on their website about deposits.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Good to know, thanks. Yes I thought if it was policy it would be on their website, maybe something specific to my case. Will see what the MA says on Tuesday!0
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This is Santander's usual approach and it can also be problematical with other lenders.
I suspect you will be applying to a new lender next week.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Yeah, I have a feeling that will be the case! Not sure whether to try another broker or stick with the same one. But as I said guess I just need to wait til Tuesday to get the full lowdown...0
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Was the broker aware of your source of deposit before application?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
You have been poorly advised, but there are other lenders who will be fine with a dividend as a deposit.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
They asked me on the initial call as far as I can remember. They asked me to send proof of deposit a week ago with consisted of bank statement and corresponding dividend voucher but they never mentioned any potential issue at either point!0
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My broker hasn't asked me yet and I plan on using a dividend from our Ltd company as our deposit....
Santander is the company we are using also - now I'm worriedMortgage for £212000 - 10/17 for 35 years!
Aiming to overpay each year as close to 10% as possible!0 -
If your broker has recommended a lender but has not yet asked you where the deposit is coming from, that is not good.
Make the source of your deposit clear to him/her next week to encourage them to do the job properly.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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