Accord Mortgages

[Martin@AS Financial]

Does anyone have any prior experience with Accord?
Apparently part of Yorkshire B.S.

I am currently in mid application with them and it feels like a real inquistition is underway on every aspect of both personal and business finances.
To date i have provided the following.

1. 3 years completed accounts for the business
2. Personal bank statements for myself and my wife
3. Current mortage lenders detail
4. Proof of address at current address - more than 5 years
5. copy of current contract

Now they are coming back and asking for 3 months statements for the ltd company bank account. I really do not see how this is related to a personal mortgage application so i told them i would not be supplying this information. As yet i have had no repsonse.
I asked the broker if this is normal practise and apparently it is !
He also mentioned that my application would be deemed by them as "high risk" given that i was a contractor and also that i wanted a 90% deal. Seems like we are going backwards with a mindset like that im afraid !!

Anyone any experience of this provider and possible other options for a business with 3 years completed accounts ??

Accord are the intermediary lending arm of The Yorkshire Building Society and will therefore have a similar lending criteria. Building Societies as a general rule are natrually cautious when it comes to underwriting a client's case. The documents that you have been asked for seems to be fairly standard and does not seem to be anything out of the ordinary especially at this is a high loan to value application.

For anyone else looking to apply for a mortgage, it is worthwhile getting together the following:

- Proof of ID
- Proof of residense - ie a utility bill from the last 3 months (not a mobile phone bill)
- Your latest 3 bank statements
- If you own already - your latest mortgage statements for your residential and any buy to lets
- Your last 3 years of accounts & SA302's
- A copy of your current contract
- A copy of your CV to demonstrate cotracting experience
- Proof of deposit - this is something lenders are becoming more and more keen on seeing as they get nervous when large sums of money are being moved around. Some banks dont just want to see the money in the bank, they are interested in how it was built up. We recently had a client who had to supply 6 years worth of bank statements to demonstrate how she had saved it.

This is by no means an exhaustive list but should go someway to preventing unnecessary delays at a later date.

[framework]

Thanks all,

Some good points made here.
My point was that i do not see what the business account statement will tell them. I asked them to clarify why they would need this information to support a personal application. If they come back with a plausible explanation then i will supply this information.

Would be interesting if they were to ask for the same level of information from an MD of a larger company which turns over millions of pounds but thats probably another discussion.

[Sally@InTouch]

These guys work on the day rate, not accounts.
Contractor Mortgages - Calculate How Much You Could Borrow.

[IR35 Avoider]

I'm a bit mystified why you would object to giving them company bank statements. Contractor mortgages are usually given on the basis that, whatever the legal niceties, for practical purposes there's no real difference between the companies income and your own. Many contractors would not be eligible for mortages they were given if the lenders only looked at cashflows into their personal accounts, applying their usual rules for employees with third-party employers.

If you were applying as an ordinary employee, you wouldn't have had to give your employer's accounts. Asking for bank statements seems like just an extra check that your accounts aren't a work of fiction. Refusing to supply bank statements makes it look like you are hiding something.

[framework]

I'm a bit mystified why you would object to giving them company bank statements. Contractor mortgages are usually given on the basis that, whatever the legal niceties, for practical purposes there's no real difference between the companies income and your own. Many contractors would not be eligible for mortages they were given if the lenders only looked at cashflows into their personal accounts, applying their usual rules for employees with third-party employers.

If you were applying as an ordinary employee, you wouldn't have had to give your employer's accounts. Asking for bank statements seems like just an extra check that your accounts aren't a work of fiction. Refusing to supply bank statements makes it look like you are hiding something.

Nothing to hide, i merely questioned the need for such information to be provided for a personal mortgage application.
They have come back stating that the information is only used to verify deposits into the account by customers. Given that i currently have a large number of customers then it may take some time for them to make sense of the information. I also have a number of employees which adds to the amount of information contained within the statements. Hopefully the application does not become delayed by them coming back and forth asking for clarification on ins and outs on the business accounts.
I have provided the info and now await response and hopefully acceptance on the application.