Accord Mortgages

[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.

[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.

[Sally@InTouch]

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

[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.

[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.

[Fandango]

I've just secured a new Mortgage with HSBC with a similar set up to yourself (keeping our exisiting property & renting it out and getting a 80% LTV mortgage on the new property).

I just needed 3 years accounts, existing mortgage details (so thaey have an idea of what other financial commitments you have), personal bank statements for me and my wife, so they could see regular outgoings etc and that was about it. I didn't have to show company bank statements(although i took them along with me just in case)

If you want the mortgage then it's unfortunately a case of showing them whatever they ask for, what harm can showing them the company statements do?

[speling bee]

Am with Accord via Contractor Money. Sounds like what they asked for 2 years ago.

[Alan @ BroomeAffinity]

Par for the course. I don't think they are being unreasonable at all tbh. And I think its obvious that the operations of the company has a direct link to the payment of your mortgage: All of your income (presumably) comes from it, and it's health has a direct bearing on your ability to pay. (Although the same argument could be made if you were permie and its unlikely they'd want to see your employer's accounts.)

As someone (Maslins?) said already: If you don't provide the info, they won't lend. Unless there's something in the company account you don't want them to see then there's no problem anyway, surely?

[Scrag Meister]

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 ??

Sounds like a similar amount of information that I had to supply to my current mortgage holder back in 2009.

Too many people were lying through their teeth back in the day and look where we are now. Up tulip creek.

Lenders are just a whole lot more careful than they were 4-5 years ago, back in the NINJA mortgage days when even a tramp's dog could get a mortgage.

[Pondlife]

No, its a new purchase. Current house will be rented out.
If its a necessity to provide this then fine, its just that i fail to understand how the comings and goings in the business account are linked to a personal mortgage. I would ahve thought that 3 years accounts would have been sufficient in this regard given that they have already contacted my accountant to "verify" the content of the accounts.

Will wait and see how they respond.

I should think you're getting away lightly. Obviously there aren't any figs being posted (and I'm not asking) but I'm surprised they're not asking for more info on the existing mortgage and how much the rental will cover etc.

As far as they are concerned you have 'no fixed employment', small salary and large performance related bonus, an existing mortgage and you want 90% LTV. I'm not having a pop but you have to see that you (we) don't come across as their idea of the perfect customer.

[framework]

It doesn't sound that unreasonable if you're asking for 90% LTV IMVHO. You mentioned an existing lender - is this a new purchase or are you remortgaging. Do you pay min wage plus divvies up to the threshold or more/less. How does this value sit as a % of the amount you're asking for.

With all the 100% self-cert crap that was lent you can see why they would be cautious about someone who doesn't fit in the standard tick boxes.

As someone metioned, if it's that bad go to a specialist who understands the way you operate.

No, its a new purchase. Current house will be rented out.
If its a necessity to provide this then fine, its just that i fail to understand how the comings and goings in the business account are linked to a personal mortgage. I would ahve thought that 3 years accounts would have been sufficient in this regard given that they have already contacted my accountant to "verify" the content of the accounts.

Will wait and see how they respond.

[Maslins]

No direct experience with that provider, but we've certainly seen mortgage info requests getting more and more onerous.

The problem is, as soon as you say "that's ridiculous I'm not providing that" chances are they'll say "well you can't have the mortgage then". Lenders aren't generally keen on lending at the moment, so unfortunately I don't think you're in much of a position to be calling the shots.

[Pondlife]

It doesn't sound that unreasonable if you're asking for 90% LTV IMVHO. You mentioned an existing lender - is this a new purchase or are you remortgaging. Do you pay min wage plus divvies up to the threshold or more/less. How does this value sit as a % of the amount you're asking for.

With all the 100% self-cert crap that was lent you can see why they would be cautious about someone who doesn't fit in the standard tick boxes.

As someone metioned, if it's that bad go to a specialist who understands the way you operate.

[captainham]

Have you tried the specialists such as contractorfinancials?

[framework]

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 ??