Halifax mortgage - LTD company HELP

Bayy

I have one year worth of LTD accounts and a salaried NHS permanent full time job


NHS salary is £40,000 before tax
LTD is £24,000 before tax and £20,000 after tax (which I have taken out as divedens) both are pharmacists, LTD is a locum pharmacist

When my MB applied for my DIP he used the £24,000
Plus £40,000 which gave me the maximum mortgage i need.

The underwriters have since asked for my accounts to be verified by the accountant and payslips. My BM however told me she was scared because now shes showing £60,000 income (as she says she THINKS they use the after tax for LTD and before tax for wage slips from NHS) but she is unsure.

My accountant has provided a projection which shows 6k more than this year for my LTD

Extra info:
First time buyer by myself
Help to buy being used at 20% - £80k
Property price £403k
Deposite : £35k
Age: 27 and been qualified for two years in my profession
40 years 5 years fixed rate mortgage
Experien score 999/999 although missed a few credit card payment to years ago when I was at uni and currently paid everything else off on credit, have a phone contract for £15/month

Surveyor has been and happy

I am going insane !!! Will theh consider my before tax?! :eek:

Bayy

Sorry I didnt realise this was so long. Firet time posting !


If you take the time to read this I'd like to thank you!

:beer:

General_Grant

Bayy wrote: »

I have one year worth of LTD accounts and a salaried NHS permanent full time job


NHS salary is £40,000 before tax
LTD is £24,000 before tax and £20,000 after tax (which I have taken out as divedens) both are pharmacists, LTD is a locum pharmacist

When my MB applied for my DIP he used the £24,000
Plus £40,000 which gave me the maximum mortgage i need.

The underwriters have since asked for my accounts to be verified by the accountant and payslips. My BM however told me she was scared because now shes showing £60,000 income (as she says she THINKS they use the after tax for LTD and before tax for wage slips from NHS) but she is unsure.

My accountant has provided a projection which shows 6k more than this year for my LTD

Extra info:
First time buyer by myself
Help to buy being used at 20% - £80k
Property price £403k
Deposite : £35k
Age: 27 and been qualified for two years in my profession
40 years 5 years fixed rate mortgage
Experien score 999/999 although missed a few credit card payment to years ago when I was at uni and currently paid everything else off on credit, have a phone contract for £15/month

Surveyor has been and happy

I am going insane !!! Will theh consider my before tax?! :eek:

Does this MB (or MB?) have anything resembling a professional qualification? (What's a BM or was that a typo? But then again can't be the same person as they've changed sex.

(Presumably by LTD you mean a private limited company where you own all the shares.)

Bayy

Thank you for your message.

Sorry I apologise, mortgage broker (BA was a typo!)

This particular mortgage broker was recommend to me from the new build development company I am purchasing from.

Yes LTD company and I own all of the shares.

[Deleted User]

Mortgsge broker seems to be confusing matters

Income used should be:

Applicant 1 - £40,000 employed
Applicant 1 second job - £44,00 as self employed. Halifax will use the total of directors salary plus dividends taken. This figure will show on your sa302 personal tax calculation.

So total income of £84,000

Based on the amount you are borrowing (£288k?) then this shouod fit affordability no issues

The underwriter will want your payslips for Ltd company to make sure the amount being paid out on payslips matches the amount paid out on accounts (cross referencing different documents and finding the same number is one way to check the numbers are real)

What is your actual question though?

Bayy

Sorry where did you get the £44k from?

My question is initisillt my mortgage adviser applied with 40k and 24k (I.e before tax) but now she thinks the affordablility will be based on 40k and 20k (i.e the dividends I took after tax)

Sorry if I wasnt clear

[Deleted User]

LTD is £24,000 before tax and £20,000 after tax

£44k. - I assumed it was 24k salary and 20k dividend. My error


From your Ltd company, you can use any salary plus dividends. Dividends are paid out after corporation tax has been paid.

So it sounds like your taxable profit was £24k, you paid £4k in tax and took the rest out as dividends?

LRmortgage

Halifax will use the dividend figure showing at the top of your tax calculation. This is before tax.
Your mortgage Broker shouldn’t be scared. They should be checking these matters out before applying and have a very good understanding before applying.
With one year trading figures, the case should have been discussed with their Halifax BDM in advance with business case submitted to Halifax on application.

Bayy

Yes that is correct 4k tax and rest taken out as divedens.

Is there any way they would consider me for the amount the MB initially sent out? It is currently with the underwriter and they havent mentioned anything yet they have just asked for reports from my accountant as I dont have a SA302 as my accountant submitted everything online.

A help to buy is 4.5 and normal mortgage is 5.5 times your salary after all and I also have projections that show an increase in 6k next year as I wont be studying and can do more locums?

:eek:

amnblog

It sounds like your MB has little idea of what she is doing.

We manage Locum Professionals regularly and you can be sure if she lets you down there will be Brokers who can manage this properly.

[Deleted User]

The application should have been submitted with £40k employed and £20k dividends.

RE the help to buy considering more income, honestly I don't know. I don't do enough new build cases to have an insight into this. Maybe Kingstreet will see the thread.

RE Halifax taking the original £24k, no they won't take this as it is the wrong figure that was used. They probably won't take a projection either to be honest. 1 year accounts is already a risk and technically outside policy, they won't increase rhat risk further by lending on an income that doesn't exist yet.


Best you can do is find a broker who does these types of cases regularly and get some proper advice. Your mortgage broker at the moment sounds clueless to be honest.