self employed mortgages

tharps23

Hi guys,

Have a DIP of 265k. My wifes PAYE im self employed. Have sent my SA302 forms and she has sent payslips. Im slighly worried when Halifax ask for 3 months bank statements that we will lose the mortgage, as since the new year works been rather slow... Do underwriters take your SA302 profit into consideration when accessing affordability, or will these 3 bad months hinder our ability to get the mortgage? 

Any advice appriciated! 

K_S

@tharps23 Depends on how bad those three months look (in comparison to 'normal' times) and what the reasons are for the downturn.

Are your projected profit figures for 2020/21 somewhat comparable to prior years? And is your business back to normal now?

tharps23

reasons for downturn is covid, wouldnt say back to normal but slowly improving. My wifes salary could comfortably cover all bills including mortgage payments anyway but worried this will hinder us. MB says because we have a fairly large deposit they may not require 3 months statements anyway! 

K_S

tharps23 said:

reasons for downturn is covid, wouldnt say back to normal but slowly improving. My wifes salary could comfortably cover all bills including mortgage payments anyway but worried this will hinder us. MB says because we have a fairly large deposit they may not require 3 months statements anyway! 

@tharps23 Out of professional interest, please do update the thread when you hear back.

tharps23

Will do, appriciate the kind words! 

_AandL_

tharps23 said:

reasons for downturn is covid, wouldnt say back to normal but slowly improving. My wifes salary could comfortably cover all bills including mortgage payments anyway but worried this will hinder us. MB says because we have a fairly large deposit they may not require 3 months statements anyway! 

We’re going through the same thing. We also have a large deposit but have been told they will only consider with 3 months statements. Be interesting to see if it is possible. 

stevenbecca

K_S said:

@tharps23 Depends on how bad those three months look (in comparison to 'normal' times) and what the reasons are for the downturn.

Are your projected profit figures for 2020/21 somewhat comparable to prior years? And is your business back to normal now?

This is crazy, how can they take the money in your account into consideration when earnings are down yet when there up they only use the sa302, my current year shows over 3k a month on my business account but they'll only use my worst 3yrs accounts on affordability which os considerably lower

ukri

It looks like the OP is hoping that Halifax will not ask for recent bank statements and just go by the last 2 years accounts.

_AandL_

Surely all lenders will be going off of bank statements now? 

tommyt-saver

I’d be very keen to hear any updates here because i’m in a very similar situation, but my partner’s business accounts are looking to be about 80% where they normally would be. If they will look at the past 6 month bank statements, this would look very reassuring too. I wonder if you can offer 6 month accounts to help get a mortgage over the line? 

tharps23

Will be able to update soon as weve had an offer accepted on a property today. Speaking with MA monday to get the ball rolling.