Mortgage broker - ask me anything

K_S

davetherave85 said:

A friend of mine accidently set their Company up as limited by guarantee rather than by shares and has been taking salary and dividends. Will this cause problems? Salary and dividends were declared on their first personal tax return. Thanks!

@davetherave85 I'm not sure to be honest. I've only ever seen ltd. co. director clients set up as limited by shares.

davetherave85

K_S said:

davetherave85 said:

A friend of mine accidently set their Company up as limited by guarantee rather than by shares and has been taking salary and dividends. Will this cause problems? Salary and dividends were declared on their first personal tax return. Thanks!

@davetherave85 I'm not sure to be honest. I've only ever seen ltd. co. director clients set up as limited by shares.

Ok, Thanks. Are there any lenders that will accept 1 year self employed accounts with a 20% or 25% deposit?

K_S

Ab28 said:

Hello-I wonder if you could share any insight. We’re currently applying for a mortgage through Barclays (through a broker). I’m on furlough and my husband is self employed so it’s the only lender that really suits us. He has 3 years worth of accounts that he’s provided and although he claimed SEISS last year following lockdown 1, business is back to normal. They came back last week asking for his business bank statements but he doesn’t have a business account as he just gets paid straight into his current account. Do you think this could be a problem or know what they’re looking for that they can’t see from the accounts he’s provided? Thank you for your help in advance 

@ab28 While lenders would prefer if the business bank account was separate, a sole trader using their personal bank account is not uncommon and shouldn't be a show-stopper on its own.

Having said that, I would rather sh*t in my hands and clap than submit an SE application with Barclays so unfortunately can't speak for their specific approach. I hope your offer comes through without too much trouble, good luck!

K_S

davetherave85 said:

K_S said:

davetherave85 said:

A friend of mine accidently set their Company up as limited by guarantee rather than by shares and has been taking salary and dividends. Will this cause problems? Salary and dividends were declared on their first personal tax return. Thanks!

@davetherave85 I'm not sure to be honest. I've only ever seen ltd. co. director clients set up as limited by shares.

Ok, Thanks. Are there any lenders that will accept 1 year self employed accounts with a 20% or 25% deposit?

@davetherave85 There are lenders that may consider applicants with only a 1 year of SE accounts. You don't *need* a 20-25% deposit but it will definitely help bolster your case. Post-covid, almost all SE cases are being manually underwritten so the case being properly packaged and placed with the right lender is of paramount importance.

ukri

davetherave85 said:

A friend of mine accidently set their Company up as limited by guarantee rather than by shares and has been taking salary and dividends. Will this cause problems? Salary and dividends were declared on their first personal tax return. Thanks!

I think he will have !!!!!! problems than a mortgage if he doesn’t sort this out soon. 

hollisandchar

I have just spoken to Halifax with regards to our mortgage application. They said our incomes are now verified and next step is to book in the valuation which will hopefully take place in the next few days. Do you think this means that everything else with the application has gone through okay, and it is now just the valuation that needs to be done? 

GeorgianaCavendish

Is it possible to get a rough idea of additional costs for FTBs (aside from deposit!) - would be looking to purchase early-mid next year so unfortunately will miss the stamp duty holiday. I've looked at the MSE guide and worked out about £15,850 in total costs, inc stamp duty (on 450K property ), legal fees, valuation fees, survey fees, mortgage fees and Land Registry. Does that sound about right or am I way off the mark? (I went with the upper end if there was a range)

K_S

hollisandchar said:

I have just spoken to Halifax with regards to our mortgage application. They said our incomes are now verified and next step is to book in the valuation which will hopefully take place in the next few days. Do you think this means that everything else with the application has gone through okay, and it is now just the valuation that needs to be done? 

@hollisandchar If they've confirmed that incomes have been verified, it definitely looks positive!

K_S

GeorgianaCavendish said:

Is it possible to get a rough idea of additional costs for FTBs (aside from deposit!) - would be looking to purchase early-mid next year so unfortunately will miss the stamp duty holiday. I've looked at the MSE guide and worked out about £15,850 in total costs, inc stamp duty (on 450K property ), legal fees, valuation fees, survey fees, mortgage fees and Land Registry. Does that sound about right or am I way off the mark? (I went with the upper end if there was a range)

@GeorgianaCavendish

- stamp duty £7,500

- valuation fee assumption £500 (free val products aren't uncommon so this could well be zero. Some lenders often offer cashback incentives for FTB products as well)

- legal fees £1,500 approx

- survey fees £800 (assuming full buildings survey)

- mortgage product fee (can be added to loan so not necessarily needed upfront)

- misc mortgage fees £100

A total of about £10k-11k for the above costs would be my mid-point assumption.

sunshune

Hi, I hope someone can help. I’ve had my ltd for just over a year and I’m due to have my accountant file my year account and complete a SA03 as I want to buy a house. I was impacted by covid but now have contracts in place, earning upwards of £80k. I also work through an umbrella company as a consultant ( I receive payslips) giving me a bit more money monthly.
My questions are, I would like to apply for a mortgage. Will I be able to use the figures from the umbrella company and those from the LTD? Do I need 2 years accounts or is there a lender that will go by what I have at the moment.
Also, what is the criteria for an interest only mortgage?

thank you in advance