Can a ltd company get a mortgage on the latest years books?

Sam_1985

Hi everyone,
My hubby has a ltd company (7 years trading) last years books were down in profit as he spent 5 months of the year training for a second trade. This year his accountant has got his books completed quickly as he knows we are looking into a mortgage, hubbys earnings this year are £41000 and mine are £12000.
We have no debt and no childcare bills.
We have 3 kids together.
My question is would we be able to find a broker to work with this years figured as if they take an average the amount they’ll lend will drop considerably?
Our accountant has said he will write a letter to explain profits were down because of training, Will this help?

ACG

You have a couple of potential options.
Latest years figures only, depending on the LTV you may find rates are a touch above the norm.
Average the last 3 years figures (2 good years and 1 bad) might make it fit? You stand a better chance of getting normal rates down that route.

But if you speak to a broker, there are lenders who despite what their criteria says on paper, they can make exceptions with a good reason, which this may fall in to.

Sam_1985

We will have a 10% deposit.
We did think rates would be a bit higher which is something we are fine with and happy to accept if it means getting onto the property ladder.

ACG

There is potential for normal rates.

We did one last year where the customer only had one years accounts, the lender needed 2. We managed to explain the situation as to why the case was a good one and he actually got the cheapest 3 year fixed rate on the market at the time. But then last month we had a customer who had a big drop in income with an explanation but the same lender would not accept it.

Get a broker involved and they will see what can be done, worst case scenario, there will be lenders, it will just cost you more. As an absolute maximum, I would expect it to be around 4.5%, but you may end up with something below 3%.