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    • bigstevex
    • By bigstevex 15th Oct 17, 1:19 PM
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    bigstevex
    Dividend Question
    • #1
    • 15th Oct 17, 1:19 PM
    Dividend Question 15th Oct 17 at 1:19 PM
    An odd question,
    We pay ourselves a Dividend once a year from a ltd company we run. Our main income is our day jobs. For proof of income for Nationwide, would they want to see the dividend payment going into our account even though it's not recent, or do they just ask for a letter off my accountant to explain company profits?

    I only ask this because we pay the dividend into the directors loan account and then withdraw it throughout the year when the company has available funds.
Page 1
    • csgohan4
    • By csgohan4 15th Oct 17, 1:30 PM
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    csgohan4
    • #2
    • 15th Oct 17, 1:30 PM
    • #2
    • 15th Oct 17, 1:30 PM
    proof is from the SA302 i.e self tax return you submit, that would be proof. Some lenders may take an accounts report regarding dividends but you might want to check with a broker.
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • ACG
    • By ACG 15th Oct 17, 1:54 PM
    • 17,023 Posts
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    ACG
    • #3
    • 15th Oct 17, 1:54 PM
    • #3
    • 15th Oct 17, 1:54 PM
    As above, you are probably over thinking it.
    SA302 and tax overview documents for the last 2 years should be plenty. Nationwide will average the last 2 years from memory.

    If you have an accountant they will get them for you.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • bigstevex
    • By bigstevex 15th Oct 17, 3:31 PM
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    bigstevex
    • #4
    • 15th Oct 17, 3:31 PM
    • #4
    • 15th Oct 17, 3:31 PM
    Excellent, yes we have an accountant etc and all the self assessment info.

    Thank you, I did think we were looking at it too much
    • amnblog
    • By amnblog 15th Oct 17, 6:47 PM
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    amnblog
    • #5
    • 15th Oct 17, 6:47 PM
    • #5
    • 15th Oct 17, 6:47 PM
    The important factor is when it is registered as a dividend and therefore when it is listed on the tax return.

    Some lenders will include the profit regardless of whether you take it as dividend.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • bigstevex
    • By bigstevex 6th Jan 18, 1:40 PM
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    bigstevex
    • #6
    • 6th Jan 18, 1:40 PM
    • #6
    • 6th Jan 18, 1:40 PM
    The important factor is when it is registered as a dividend and therefore when it is listed on the tax return.

    Some lenders will include the profit regardless of whether you take it as dividend.
    Originally posted by amnblog
    This was my next question I've just thought of as I'm getting confused again. So our ltd company year runs Jan-Jan hence our profits show as follows
    2015/16 - Accounts Jan 2016 Net Profit ~10K - Dividend paid April 2016 (i.e. 16/17 sa tax year) There was logic in this, as the 5K tax free allowance started in the 16/17 tax year.

    2016/17 - Accounts Jan 2017 Net profit ~20K - Dividend paid April 2017 (i.e. 17/18 SA tax year)

    2017/18 - Accounts Jan 2017 Net profit ~30K - Dividend not yet paid....

    This is now my dilema, do I pay this dividend now so it goes on our 2017/18 SA Tax year for the purpose of getting a larger mortgage, or would nationwide accept it based on the Net profit of the company via a certificate from our accountant and I continue to pay this in our 2018/19 SA Tax year in April? But obviously if Nationwide wanted the SA302 for this dividend, it wouldn't be available until April 2019

    Or should I consider other lenders if nationwide won't accept it this way. Also, technically my dividend for this year would be slightly skewed on my self assessment as it would have the 2017& 2018 dividends included so it would look higher than it actually is.

    Hope that makes sense. We don't want to start looking at selling and buying if we're going to find out further down the line our mortgage amount isn't what we want/need and then have to back out
    • bigstevex
    • By bigstevex 8th Jan 18, 1:18 PM
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    bigstevex
    • #7
    • 8th Jan 18, 1:18 PM
    • #7
    • 8th Jan 18, 1:18 PM
    Anyone any suggestions. Also any brokers in the Liverpool area people might suggest if nationwide wouldn't accomodate this
    • bigstevex
    • By bigstevex 10th Jan 18, 10:29 AM
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    bigstevex
    • #8
    • 10th Jan 18, 10:29 AM
    • #8
    • 10th Jan 18, 10:29 AM
    Bump.

    Additional information, my accountant can't certify my Self assessment as I do that part myself, she can only certify my company accounts she's told me. Hence my above question shrinks down to, can I still use nationwide based on this or do I need a broker with options of other providers as I won't be using SA302 to prove income it will be my day job payslips and certified company accounts?
    • YHM
    • By YHM 10th Jan 18, 10:45 AM
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    YHM
    • #9
    • 10th Jan 18, 10:45 AM
    • #9
    • 10th Jan 18, 10:45 AM
    Why don't you just look for a lender that focuses on Net Profit + Salary. Then the issue about the dividend is benign.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • bigstevex
    • By bigstevex 10th Jan 18, 12:16 PM
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    bigstevex
    Do you know of any
    • bigstevex
    • By bigstevex 10th Jan 18, 1:49 PM
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    bigstevex
    So a bit more research says Nationwide will accept what I have as will the Leeds building society.
    Nationwide offer ~466K and Leeds 592k based on figures input

    Both have PAYE full time jobs in addition to the above profits obviously hence those figures above
    • YHM
    • By YHM 10th Jan 18, 2:29 PM
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    YHM
    Ok, I assume the day jobs are bringing in the majority of the income then? Circa 100k income?

    Are these figures enough for what you require?
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • bigstevex
    • By bigstevex 10th Jan 18, 11:24 PM
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    bigstevex
    Correct, the ltd company is the part time hobby, both of us have full time day jobs. The offers are definately enough, Nationwide will offer over what we're after and Leeds... Well that 592k was incredible, odd though as all their products have notes saying 500K max loan.
    • bigstevex
    • By bigstevex 24th May 18, 12:23 AM
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    bigstevex
    Just to bump this question. So a few months pass and we get to the DIP stage with the Leeds BS, thankfully before we made an offer on a property. Their calculator on the website says 560K with all details entered and all outgoings.


    DIP... 399K... With the exact same details. Both perfect credit ratings, 3K on a credit card which was delcared as will be cleared and closed next month prior to completion. Their reasoning when I called to query it, 'maximum salary multiplication' nothing wrong with credit checks, no one can explain to me how their calculator says 560K yet the DIP is 399K, apparently it's 'just what happens' they told me. That's not a small difference though, that's massive with no logical reasoning surely?


    Are there any other lenders out there who'll go towards 5 X Combined Salary (Job 1) and net profit/dividend (J!!! Own Ltd Company) for both applicants. We need ~450k and have an 85K deposit, so approx 84% LTV.
    • amnblog
    • By amnblog 24th May 18, 7:52 AM
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    amnblog
    Four months on and a Broker has still not sorted this out for you?

    You may be wise to submit self assessment returns if you have not already does so. This gets the dividend income on to the SA302 and Tax Year Overview which broadens your lending options.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • ACG
    • By ACG 24th May 18, 8:01 AM
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    ACG
    Most lenders has an income multiple cap (usually around 4.5x income).
    I think Leeds is one of the few lenders where their calculator does not take the cap in to account. Although from memory (Leeds is not a lender I use often) their calculator does mention the cap.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • amnblog
    • By amnblog 24th May 18, 8:10 AM
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    amnblog
    Leeds cap at 4.75 Joint on their calculator.

    As ever, the calculator is half the story.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • bigstevex
    • By bigstevex 24th May 18, 7:16 PM
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    • 342 Thanks
    bigstevex
    Hi, I didn't need it 4 months ago hence not contacting a broker yet. I did ask for north west recommendations however I had no replies

    Makes sense about the 4.75 thing I saw that myself and found it odd.

    Seems Santander are my best option now, they will give 5X on incomes over 50K.

    Just hope they take the 2 job situation into account.
    • bigstevex
    • By bigstevex 24th May 18, 7:32 PM
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    • 342 Thanks
    bigstevex
    Also, the SA302 bit, the dividend would be on my next SA... i.e 18/19 next april
    • amnblog
    • By amnblog 24th May 18, 9:19 PM
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    amnblog
    Do yourself a favour and get some advice Steve.

    ACG is in the North West
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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