Mortgage application rejection

Kevb159

Could anyone please assist with this one

I am a director of a limited company and have just applied for a mortgage of £96k

Everthing was going about to go through decision in principle full hard search on my credit report all fine.

The lender the said there was an issue with the information supplied by my accountant which ment they could only lend me £20k

I was confussed by this so started looking at the details which had been requested and supplied i observed

Net profit (before corporation tax):- appeared to be correct
Net profit (after corporation tax and before dividends):- this looked to be an error from my accountant. Am i correct in thinking this should be the net profit less the corporation tax and needs too include dividend figure?

If anyone can offer any advise and weather there is a mistake and a way to correct it. this the moment this has totally messed up my credit report and costing me a small fortune.

Kevb159

Just to add further detail i am a first time buyer and currently earn 40k including bonus.

I dont understand why this would be rejected can anyone advise?

steampowered

It might be worth speaking to a broker.

It can be difficult to get a mortgage when you are self-employed - the broker should know the best lenders to approach for your situation.

Kevb159

This was all set up by a broker. But unfortunately i am now trying to figure out the problem following my accountant intervention. As further applications will effect my credit rating even more and including valuation fees.

middleclassbutpoor

You need to speak to your accountant - looks like you have started 3 threads all on the same thing..

silvercar

middleclassbutpoor wrote: »

You need to speak to your accountant - looks like you have started 3 threads all on the same thing..

I've removed one of the duplicate threads.

Kevb159

I am just trying to get some kind of knowledge on this before tomorrow so i know how to progress. I don't get much spare time when i am working. To be honest i didnt think i was getting many replys i thought it was because of how i had worded the thread. Do i need to remove one?

middleclassbutpoor

You will find that the brokers on here who may be better positioned to help are more active during the week. The figures that lenders will utilise for what you can lend can be different in terms of some will take your last accounts, some will average out the last 2-3 years as I understand it. So if your financials this year has been far better than previous years and they have taken an average then this could bring down what you could borrow.

Speak to your accountant and give them permission to speak to your broker and get your broker to work out what has gone wrong - that is what they are being paid for.

Futuristic

Which lender is it? You can probably find the requirements online but as above just be patient and give your accountant permission to talk with broker direct.