Which Mortgage lender to approach

ray1680

hello everyone, I’m new to the forum hopefully someone can help my situation.

We are looking to move home and have sold our house stc.

My wife owns 3 limited companies but only pays herself a salary of 31k includes 17k dividends from just the one company for the last 7 years and has 3 years worth of sa302s and tax overviews. With fair/good credit no defaults or missed payments. Has credit card and agreed overdraft facility which she uses.

I have started working to oversee the business for 4 months on a paye scheme and have my wages paid into my account on monthly basis 49k per annum. Prior to this I have not been working due to bringing up our child so fulltime parent. My credit file is excellent only have one credit card.

Purchase price of new property is £540k and we are putting down £180k deposit from sale of house.

We have been advised by broker to approach foundation home loans as the dip agreed at £460k however they have now asked for 6 months business bank statements for all limited businesses and i feel its going to drag on and waste our time to eventually be declined.

As we are looking to borrow min £360k can anyone recommend a lender that has more human approach ? I have read that Santander and Halifax are strict although at Dip stage they only require 1 months payslip and accounts cert.

ACG

You have been working for your wifes business for 4 months.
There is going to be a concern from any lender that you have done it just to boost your income in order to get a bigger mortgage, so realistically it is quite likely you are going to get asked more questions than most.

I have no first hand experience with foundation, I would have expected there to be better options but I would just be prepared to play the game, expect an accountants letter to be needed and so on.

What is requested at DIP stage is just what the computer says is needed. Once an underwriter gets hold of it, because your situation is outside the norm, they will then determine what other documents are needed.

kingstreet

If she is retaining the profits in the firm instead of taking them as dividends, wouldn't a lender adopting a 'salary + share of post-tax profit' approach make more sense?

ray1680

she is taking a salary plus div each year. having spoken to lenders over the phone i have mentioned its family buisness and length of employment.....they dont seem bothered as long as i can prove income by payslips and bank account

Donny2019

Santander were not that strict for us- gave us interest only on a residential mortgage and now that house is run as a commercial bed and breakfast sleeping 8 or more - still got the same mortgage so can’t grumble . I think once u get mortgage Boone seems to care do long as u pay yr payments.

amnblog

ray1680 wrote: »

she is taking a salary plus div each year. having spoken to lenders over the phone i have mentioned its family buisness and length of employment.....they dont seem bothered as long as i can prove income by payslips and bank account

They haven’t given you the full picture because the people you speak to dont do the dirty work.

Your chances of sorting this without a broker are negligible. As I don't know the case I cannot second guess why FHL are the recommended route - trying an alternate route yourself does not sound smart to me.

[Deleted User]

I suspect they want statements to see if the business can support a salary of 49k being taken. Accounts presumably won't have this showing on them and it will have a knock on effect on your wife's income as her business's now have another 50k to pay out.

Like amn I can't give any better lenders but I would expect you to have a suitability report given on application that states why cheaper lenders were discounted