Mortgage - 3 Years of Company Accounts as Deemed Self Employed??

elstimpo

I'm looking to take our a relatively low mortgage on a property i own.

I've found a good deal, but the information they are requesting is considerable. Pay Slips, Proof of Address and Bank Account Statments are all fine but;

3 Years of SA302's - Which i don't believe are even relevant anymore and been replaced by a Tax Overview which i have.

3 Years of Company Accounts - As i own more than 20% of the company i work for they deem me as self employed and require this.

Also, the fact that i'm looking to take out 16% mortgage on the properrty i currently own mortgage free, is apparently irrelevant.

Do i really have to jump though these hoops and give them my company accounts for 3 years?

Thanks

Thrugelmir

elstimpo wrote: »

Do i really have to jump though these hoops and give them my company accounts for 3 years?

You are no different to any other applicant. The lender knows absolutely nothing about you and your finances. Before lending you money the underwriting team will be required to follow the due internal set process.

[Deleted User]

Are you arranging this yourself and found the deal yourself or doing through a broker?

Especially with self employed clients one of the questions I will ask them is 'Do you want to save a few quid if it results in a more stressful applicaiton or will you pay £1 extra month for an easy life?'

There will be lenders that will most likely do it on the Tax Calcs and Tax Year Overviews with no bank statements. Some will do it on an accountants reference alone.

We only get a feel for how lenders treat certain applicants by doing lots of cases with them, you wont have that luxury so its guesswork if you will get an easier life or not.

Each lender is entitled to assess risk differently, the one you chose is obviously a bit more careful with self employed cases than some

JayCeeEssex

Elstimpo - I am afraid that if the underwriter requests information, then that information IS required!
There are the odd times where it is possible to argue a point with an underwriter, but the general rule of thumb is "It's their bat and their ball and if they choose to play football with a ping pong ball, then so be it!"

elstimpo

Thrugelmir wrote: »

You are no different to any other applicant. The lender knows absolutely nothing about you and your finances. Before lending you money the underwriting team will be required to follow the due internal set process.

Not sure i appreciate the tone of your reply? Why so hostile? Surely every single applicant is different?

elstimpo

Deleted_User wrote: »

Are you arranging this yourself and found the deal yourself or doing through a broker?

Especially with self employed clients one of the questions I will ask them is 'Do you want to save a few quid if it results in a more stressful applicaiton or will you pay £1 extra month for an easy life?'

There will be lenders that will most likely do it on the Tax Calcs and Tax Year Overviews with no bank statements. Some will do it on an accountants reference alone.

We only get a feel for how lenders treat certain applicants by doing lots of cases with them, you wont have that luxury so its guesswork if you will get an easier life or not.

Each lender is entitled to assess risk differently, the one you chose is obviously a bit more careful with self employed cases than some

It's through a mortgage broker, i've asked them if they can rule out lenders who require my company accounts as naturally i'm very cautious about giving out this info to anyone.

I'm happy to take a slightly worse deal.

elstimpo

JayCeeEssex wrote: »

Elstimpo - I am afraid that if the underwriter requests information, then that information IS required!
There are the odd times where it is possible to argue a point with an underwriter, but the general rule of thumb is "It's their bat and their ball and if they choose to play football with a ping pong ball, then so be it!"

Surely there are some mortgage lenders who can make an assesment based on three years of my tax overview?

I'm also confused that a relatively low mortgage can't be secured against assets?

JayCeeEssex

There are possibilities, but a lot will depend on your overall position/credit profile and history.
Generally speaking, most lenders are quite happy with Tax Year Calculations and Tax Year Overviews for the last 3 years. The overview obviously just gives the headline figure, it is how that figure is achieved on the calculations that the underwriter is really interested in!

[Deleted User]

elstimpo wrote: »

Not sure i appreciate the tone of your reply? Why so hostile? Surely every single applicant is different?

You would think so but no. Vast majority of lenders have a check box for underwriting and most will have the same underwriting requirements for 80% deposit as 5% deposit.

Majority of the 'manual' assessment is done by an automated system either accepting or rejecting cases.

The bit about treating each client differently is the brokers bit who should decide which lender to go to based on priorities and how the case is made up

Thrugelmir

elstimpo wrote: »

Not sure i appreciate the tone of your reply? Why so hostile? Surely every single applicant is different?

Factual not hostile. Lenders operate at a macro level not a micro level. Policies being set at board level. Underwriters have an element of discretion but not the ability to change rules as they think fit.

When people are hesitant. Natural assumption is that there's somewthing to hide. As majority of people simply get on with providing whatever information is requested. After all the aim is to borrow money.

[Deleted User]

I just re-read this.

I assumed they were asking for 3 years of company bank accounts and you felt that this was too much information.

3 years of company accounts is very very normal thing to ask for and quite strange that you are being hesitant in providing it. Most of the info is on companies house anyway if they really wanted to go look for it.

they will be looking to see if the income in the company can support the level of income you are drawing from it.
I had a client who was draining all the cash in her company to boost the dividends. I didnt even submit anything for her but these are the reasons they sometimes request company accounts.

As before though, there are a few lenders who work on accountants certificates and ask the accountant to sign off that the numbers are sustainable. Your broker will know who these companies are