Mortgage broker - ask me anything

jg89

haras_n0sirrah said:

jg89 said:

Hi Everyone,
First off thanks for all the info on this group, it has been really useful reading about everyones experiences. I just wanted to get some advice on my situation.

I am the sole director of my limited company and have been trading for 3 years with my 3rd year just finished last month. During my 1st year I wasn't really trading and had a part time job whilst I was building up my client base.

My figures are as follows:
For my 1st year I encountered a small loss of £517.

For my 2nd year I had a profit before tax and after salary of £31,815 and £26,216 after tax. My salary was £8,538 & I took out £12,000 in dividends.

For my 3rd year I had a profit before tax and after salary of £82,524 and £67,043 after tax. My salary was £8,659 & I took out £37,100 in dividends.

I need to borrow £287,000 and will be putting down 15% deposit and could possibly stretch to 20%. My credit is clean and I don't have any debt apart from my student loan.

What lenders do you think would be suitable? (I've read up about Clydesdale & Coventry but are their any others)

Would they look at all of the years, the most recent year or an average of year 2 & 3 and would it be profit before tax + salary or profit after tax + salary.

Sorry for the long post, any advice would be much appreciated!

Thanks

Most lenders would look at the last 2 years accounts so the previous loss won't be too much of an issue. Some lenders take salary plus dividends, others take salary plus profit either before or after tax so dependent on the calculators will depend on the best option for you (at the cheapest rate possible) 
What will currently be crucial will be whether your last 3 months business bank statements are showing income at a normal level and whether you have taken any grants since covid 

Thanks for the quick response!

To get the amount I need at 15% deposit it would need to be profit before tax + salary but could also look at profit after tax + salary as a last measure but would involve me having to put down a bit more on top. 

Last 3 months business bank statements are fine income wise, been even busier so all good in that regard. I didn't take any grants at all, just put myself on furlough for a few months as a precaution as I wasn't able to work due to the restrictions but due to being a director it was only around £575 each month and came off of that in July once I was able to work again.  

Are their any other lenders other than Clydesdale & Coventry that you would recommend? 

Thanks!

haras_n0sirrah

jg89 said:

haras_n0sirrah said:

jg89 said:

Hi Everyone,
First off thanks for all the info on this group, it has been really useful reading about everyones experiences. I just wanted to get some advice on my situation.

I am the sole director of my limited company and have been trading for 3 years with my 3rd year just finished last month. During my 1st year I wasn't really trading and had a part time job whilst I was building up my client base.

My figures are as follows:
For my 1st year I encountered a small loss of £517.

For my 2nd year I had a profit before tax and after salary of £31,815 and £26,216 after tax. My salary was £8,538 & I took out £12,000 in dividends.

For my 3rd year I had a profit before tax and after salary of £82,524 and £67,043 after tax. My salary was £8,659 & I took out £37,100 in dividends.

I need to borrow £287,000 and will be putting down 15% deposit and could possibly stretch to 20%. My credit is clean and I don't have any debt apart from my student loan.

What lenders do you think would be suitable? (I've read up about Clydesdale & Coventry but are their any others)

Would they look at all of the years, the most recent year or an average of year 2 & 3 and would it be profit before tax + salary or profit after tax + salary.

Sorry for the long post, any advice would be much appreciated!

Thanks

Most lenders would look at the last 2 years accounts so the previous loss won't be too much of an issue. Some lenders take salary plus dividends, others take salary plus profit either before or after tax so dependent on the calculators will depend on the best option for you (at the cheapest rate possible) 
What will currently be crucial will be whether your last 3 months business bank statements are showing income at a normal level and whether you have taken any grants since covid 

Thanks for the quick response!

To get the amount I need at 15% deposit it would need to be profit before tax + salary but could also look at profit after tax + salary as a last measure but would involve me having to put down a bit more on top. 

Last 3 months business bank statements are fine income wise, been even busier so all good in that regard. I didn't take any grants at all, just put myself on furlough for a few months as a precaution as I wasn't able to work due to the restrictions but due to being a director it was only around £575 each month and came off of that in July once I was able to work again.  

Are their any other lenders other than Clydesdale & Coventry that you would recommend? 

Thanks!

I can't name lenders on the general forum without doing a fact find as it could be seen as 'advice'. 
The brokers who post here can be PM'd if posters would like our advice in a professional capacity 

lemliss

Long and short
Been approved for a mortgage, sellers solicitors haven't responded to any calls or emails from our solicitors in 8 weeks, their offices are closed due to covid, seller not very helpful in chasing (we are renting the property we are buying currently)
Is it a possibility to transfer our mortgage offer (Nationwide) to another property? 
I was originally just going to threaten this to try get them moving but now I've thought about it im interested to know...

jg89

haras_n0sirrah said:

jg89 said:

haras_n0sirrah said:

jg89 said:

Hi Everyone,
First off thanks for all the info on this group, it has been really useful reading about everyones experiences. I just wanted to get some advice on my situation.

I am the sole director of my limited company and have been trading for 3 years with my 3rd year just finished last month. During my 1st year I wasn't really trading and had a part time job whilst I was building up my client base.

My figures are as follows:
For my 1st year I encountered a small loss of £517.

For my 2nd year I had a profit before tax and after salary of £31,815 and £26,216 after tax. My salary was £8,538 & I took out £12,000 in dividends.

For my 3rd year I had a profit before tax and after salary of £82,524 and £67,043 after tax. My salary was £8,659 & I took out £37,100 in dividends.

I need to borrow £287,000 and will be putting down 15% deposit and could possibly stretch to 20%. My credit is clean and I don't have any debt apart from my student loan.

What lenders do you think would be suitable? (I've read up about Clydesdale & Coventry but are their any others)

Would they look at all of the years, the most recent year or an average of year 2 & 3 and would it be profit before tax + salary or profit after tax + salary.

Sorry for the long post, any advice would be much appreciated!

Thanks

Most lenders would look at the last 2 years accounts so the previous loss won't be too much of an issue. Some lenders take salary plus dividends, others take salary plus profit either before or after tax so dependent on the calculators will depend on the best option for you (at the cheapest rate possible) 
What will currently be crucial will be whether your last 3 months business bank statements are showing income at a normal level and whether you have taken any grants since covid 

Thanks for the quick response!

To get the amount I need at 15% deposit it would need to be profit before tax + salary but could also look at profit after tax + salary as a last measure but would involve me having to put down a bit more on top. 

Last 3 months business bank statements are fine income wise, been even busier so all good in that regard. I didn't take any grants at all, just put myself on furlough for a few months as a precaution as I wasn't able to work due to the restrictions but due to being a director it was only around £575 each month and came off of that in July once I was able to work again.  

Are their any other lenders other than Clydesdale & Coventry that you would recommend? 

Thanks!

I can't name lenders on the general forum without doing a fact find as it could be seen as 'advice'. 
The brokers who post here can be PM'd if posters would like our advice in a professional capacity 

Understood, will drop you a PM. 

haras_n0sirrah

lemliss said:

Long and short
Been approved for a mortgage, sellers solicitors haven't responded to any calls or emails from our solicitors in 8 weeks, their offices are closed due to covid, seller not very helpful in chasing (we are renting the property we are buying currently)
Is it a possibility to transfer our mortgage offer (Nationwide) to another property? 
I was originally just going to threaten this to try get them moving but now I've thought about it im interested to know...

Nationwide wont transfer I am afraid. It would be a new application 

katb88

Can I ask if you would be turned down for taking grant? 

Hubby had cancellations first few months, took first grant. Work has picked up to an even busier level last few months and he’s booked up till end of year. We have good credit, he’s self employed with 3 years of good books, im keyworker? 

haras_n0sirrah

katb88 said:

Can I ask if you would be turned down for taking grant? 

Hubby had cancellations first few months, took first grant. Work has picked up to an even busier level last few months and he’s booked up till end of year. We have good credit, he’s self employed with 3 years of good books, im keyworker? 

No you wont be but you need to be careful with lender choice as some lenders will be a lot more difficult than others. The lenders will look closely at the last 3 months business bank statements 

Skuk

Hi all, hoping to get some suggestions. 

I have sold my current property SSTC (wasn’t expecting it to sell so quick so I am going to port my mortgage to the next property to avoid ERC). I have just had an offer accepted on a new property and also a new job offer subject to vetting. Although I have a job offer I believe I require a start date to use this job with a higher salary for my affordability  when applying for my new mortgage. My issue is this vetting process can apparently take around 12 weeks and I am in week 6. 

I have had suggestions to start the mortgage application on my current salary and front up the extra in cash (which I would struggle to do) and then change my salary mid process. 

Seller is aware but still seem in quite a hurry- any other suggestions on any other options? I’m also concerned the mortgage process could be done before I receive my start date.

Thanks!

katb88

haras_n0sirrah said:

katb88 said:

Can I ask if you would be turned down for taking grant? 

Hubby had cancellations first few months, took first grant. Work has picked up to an even busier level last few months and he’s booked up till end of year. We have good credit, he’s self employed with 3 years of good books, im keyworker? 

No you wont be but you need to be careful with lender choice as some lenders will be a lot more difficult than others. The lenders will look closely at the last 3 months business bank statements 

Thank you, we have gone with nationwide, business accounts are looking good last 3 month and this month incase they request more? 

becky8690

Pre and Post Offer Correspondence

Excludes day of receipt and scanning of post.

12 working days

Is this meant to mean after leeds have requested additional info/documents