Mortgage application

[mgrover]

recently doing similar.

i basically sent them all manors of self assessment/personal bank statements/tax overview pages/business bank statements.

all statements for last 3 months or tax related stuff last 2 years.

[willendure]

my question is the next step, and upon full application. I will obviously need to provide statements / accounts for my business account to the lender, but do I also need to provide statements for my personal account, or multiple personal accounts as I have around 3 or 4 for different outgoings / savings etc. do they need to see every account as to where the dividends are going?

the initial stage just seems very light weight, assuming it gets a lot more detailed and admin heavy come full application?

Remortgaged about 18 months ago so still fairly fresh in my mind - in fact I have a folder with all the stuff in it still saved on my PC. So here it is:

Provided full accounts for Ltd, all bank statements for Ltd, all bank statements for me and my wife, current signed contract with 3+ months still on it, proof of identity, proof of address, credit reports for me and my wife, marriage certificate, wifes payslips, and also answered dozens of other nosy questions. Was quite a PITA to get it all done, every time they seem to add more admin.

Did mine through CMME mortgages, lady named Kirsty Geddes sorted it all out, and I would recommend them. She did me a big favor by getting in touch about 6 months ahead of the rate rise to book the remortgage in cheaper than if I had left it until nearer the time.

[Martin@AS Financial]

For the purposes of satisfying anti money laundering criteria, banks need to be able to see the source of your deposit.

If the money is coming from your ltd co as a dividend, I would evidence this via 3 months of your ltd co accounts to show the build up. If you then transfer this across to multiple accounts, banks may need to see a trail history of these accounts as well to show the paper trail.

If your deposit is equity from the sale of your current home and you are buying simultaneously, a copy of the property particulars should do the job

[jamesbrown]

Gotcha. If it's all coming from existing equity, no problem.

It sounds like you have a broker already, so it would be best to direct any detailed questions towards them as you're paying them to not only identify a suitable product, but to walk you through the process. If you don't have a broker, you should definitely use one as they know how to package a mortgage application to a highstreet lender where you need to go through the correct front door even with a contractor-friendly lender. If you attempt this alone, you are likely to encounter general cluelessness and disappointment. You will need to provide the broker with things like business and personal bank statements for the last 3 months (from the main accounts, not all accounts), your company accounts for the past 2 years, P60s etc. They will know how to package this up and provide it to the lender.

[Rik1087]

jamesbrown thanks for the reply.

I guess the deposit wasn’t on my radar, as our equity will essentially be used for the deposit.
I guess it was more in relation to the lender doing the usual checks around affordability. When I did the conventional route when perm, the lender (Nationwide) wanted to know what every penny was spent on in order to asses whether I could afford the monthly mortgage fee.
I am assuming, although the lender will base their lending on my contract, at some stage they will want to see for example a) my company receives x amount b) I take out a dividend of x amount and c) what that dividend gets spent on once in my personal account?

[jamesbrown]

It isn't until your offer is accepted and the legal process begins (money laundering checks) that you need to completely map the origin of your deposit from each original source, such as a dividend. It is a cumbersome process if you have a large number of savings accounts and switch them regularly, but it's essentially a confidence building exercise for your conveyancer. The initial application process is very straightforward through a broker. If you don't have one already, I would highly recommend Ryan at Freelancer Financials.

[Rik1087]

Hi Guys,

just after advice from those that have been through a mortgage application whilst contracting.

the process as explained to me by several brokers who specialise in contractors, has been day rate x5, x46 weeks = X and then multiplied by 4 or 4.2 etc.

this amount is then agreed in principle, on average it lasts for around 30 days.

my question is the next step, and upon full application. I will obviously need to provide statements / accounts for my business account to the lender, but do I also need to provide statements for my personal account, or multiple personal accounts as I have around 3 or 4 for different outgoings / savings etc. do they need to see every account as to where the dividends are going?

the initial stage just seems very light weight, assuming it gets a lot more detailed and admin heavy come full application?