Illustration retracted

K_S

kingstreet said:

Halifax works from average director remuneration and dividends evidenced by latest two years tax calculations/SA302s and accompanying tax year overviews. If the latest year is lower, they will discard the average and work from the latest year instead.

How have these changed in the period in question?

@kingstreet I don't know if policy has changed very recently but since the prior year is <50k, doesn't Halifax take the lower of the two years?

K_S

Jglews said:

Earnings were as described, broker had sa302’s prior to going to lenders, my Ltd company profits increased this year by net 6.5k, which is the only change but shouldn’t an increase improve affordability? 

@jglews Not necessarily when it's Halifax. For self-employed income <50k/year, they will take the lower of the two years, not the average. But even that wouldn't explain a 50% drop in affordability.

I think what may have happened here is the the broker may have applied for borrowing based on salary+netprofit (which Halifax will consider subject to referral to full underwriting)


The underwriter may have reviewed and declined to use net-profits and fallen back on salary+dividends which gives you a lower borrowing figure.

Just an educated guess based on the limited info in this thread.

kingstreet

K_S said:

kingstreet said:

Halifax works from average director remuneration and dividends evidenced by latest two years tax calculations/SA302s and accompanying tax year overviews. If the latest year is lower, they will discard the average and work from the latest year instead.

How have these changed in the period in question?

@kingstreet I don't know if policy has changed very recently but since the prior year is <50k, doesn't Halifax take the lower of the two years?

Good point. Forgot that.

Jglews

Thankyou to all that commented, it helped me get a better understanding, 
Im still in talks with the advisor (although the original one has since left the company) 
fingers crossed I can get sorted,