Dividend Question

YHM

Ok, I assume the day jobs are bringing in the majority of the income then? Circa 100k income?

Are these figures enough for what you require?

bigstevex

Correct, the ltd company is the part time hobby, both of us have full time day jobs. The offers are definately enough, Nationwide will offer over what we're after and Leeds... Well that 592k was incredible, odd though as all their products have notes saying £500K max loan.

bigstevex

Just to bump this question. So a few months pass and we get to the DIP stage with the Leeds BS, thankfully before we made an offer on a property. Their calculator on the website says £560K with all details entered and all outgoings.


DIP... £399K... With the exact same details. Both perfect credit ratings, £3K on a credit card which was delcared as will be cleared and closed next month prior to completion. Their reasoning when I called to query it, 'maximum salary multiplication' nothing wrong with credit checks, no one can explain to me how their calculator says £560K yet the DIP is £399K, apparently it's 'just what happens' they told me. That's not a small difference though, that's massive with no logical reasoning surely?


Are there any other lenders out there who'll go towards 5 X Combined Salary (Job 1) and net profit/dividend (J!!! Own Ltd Company) for both applicants. We need ~450k and have an 85K deposit, so approx 84% LTV.

amnblog

Four months on and a Broker has still not sorted this out for you?

You may be wise to submit self assessment returns if you have not already does so. This gets the dividend income on to the SA302 and Tax Year Overview which broadens your lending options.

ACG

Most lenders has an income multiple cap (usually around 4.5x income).
I think Leeds is one of the few lenders where their calculator does not take the cap in to account. Although from memory (Leeds is not a lender I use often) their calculator does mention the cap.

amnblog

Leeds cap at 4.75 Joint on their calculator.

As ever, the calculator is half the story.

bigstevex

Hi, I didn't need it 4 months ago hence not contacting a broker yet. I did ask for north west recommendations however I had no replies

Makes sense about the 4.75 thing I saw that myself and found it odd.

Seems Santander are my best option now, they will give 5X on incomes over 50K.

Just hope they take the 2 job situation into account.

bigstevex

Also, the SA302 bit, the dividend would be on my next SA... i.e 18/19 next april

amnblog

Do yourself a favour and get some advice Steve.

ACG is in the North West

Thrugelmir

bigstevex wrote: »

Their reasoning when I called to query it, 'maximum salary multiplication' nothing wrong with credit checks, no one can explain to me how their calculator says £560K yet the DIP is £399K, apparently it's 'just what happens' they told me. That's not a small difference though, that's massive with no logical reasoning surely?

Totally logical on commercial grounds. Which they won't disclose externally. Lenders run their mortgage books at a macro rather than micro level. Adjusting underwriting criteria on a frequent basis depending on current appetite for particularly types of business.