HSBC mortgage - self employed

[kingknacker]

Hi

Just wondering if anyone here has had experience getting a mortgage with hsbc as a director of a limited company but with only 2 years accounts ?

My company has been running for 2yrs and 4 months so I only have 2 years accounts. I have a forecast for this year based on the 1st 4 months of the year. My dividends and wages come to around £42k and I am looking to borrow as much as they will give me ( which they have said on their decision in principle is £187k). I passed the credit check ok and now they have sent my application to their underwriters. Will the underwriters say no straight away because of only having two years accounts or will they take into account that I have a LTV of 49% ?

I'm getting very nervous about it as I had my offer on a house accepted (first time buyer) and I obviously don't want it to fall through. Its so frustrating that is may be an issue given that I will have no problem whatsoever paying the mortgage. It will probably be cheaper than the rent I am currently paying !

Any comments or tales of similar woes would be greatly appreciated.

[Mandat]

I got a mortgage 18 months ago with only 1 year of full company accounts, and a couple of P60's from previous years. This was with Halifax and was not a problem.

Also, the accountants here will tell you that if you are paid via PAYE then you are an employee rather than self employed.

[jonamv8]

Same scenario - not easy tbh. Was a Premier mortgage I applied for, and got, but had to supply loads of info. Are you a Premier customer?

[jonamv8]

Same scenario - not easy tbh. Was a Premier mortgage I applied for, and got, but had to supply loads of info. Are you a Premier customer?

[Sarnie]

Mandat said:

Also, the accountants here will tell you that if you are paid via PAYE then you are an employee rather than self employed.

Not if you own more than 20% of the business, for mortgage purposes.

[metalface]

Hello!

I registered especially to ask whether you'd had any success with this application at HSBC yet? I ask as I'm in more or less the exact same situation (wife has 2yrs 10 months accounts... so close to 3!) and we've just applied. Not really confident it'll be approved (even though we're not really asking for a lot in our opinion - almost personal loan territory on top of our existing mortgage balance) but we'll see.

Can't really find anything on the web regarding this

[CRB14]

I'm unsure of your trade however if you are a contractor it is possible to get a mortgage based on your current contract and your daily / hourly rate. You then don't need 2 or 3 years worth of accounts.

[kingknacker]

Thanks or your input everyone. I'm not a premier account holder unfortunately. I still haven't heard anything back yet. They would have got my accounts on Tuesday so will hopefully hear from them tomorrow or next week. I'll let you know what happens. If it doesn't work then I'll have to apply elsewhere which will take another few weeks. Just hope the vendors don't get nervous !

[Sarnie]

kingknacker said:

Thanks or your input everyone. I'm not a premier account holder unfortunately. I still haven't heard anything back yet. They would have got my accounts on Tuesday so will hopefully hear from them tomorrow or next week. I'll let you know what happens. If it doesn't work then I'll have to apply elsewhere which will take another few weeks. Just hope the vendors don't get nervous !

I'm a broker, if they mess you about, drop me a line

[metalface]

Ah that sucks... I wish this whole process could be a bit quicker! We're hopefully going to hear back next week. We've got a 2nd meeting booked in with the mortgage manager for Thursday but I'm not convinced that will happen, probably be delayed and re-arranged - if it even happens at all, as they may not approve it.

Good luck though!

[Jockman]

Sarnie said:

Mandat said:

Also, the accountants here will tell you that if you are paid via PAYE then you are an employee rather than self employed.

Not if you own more than 20% of the business, for mortgage purposes.

Correct. HBOS actually used to be 25% when I used them pre-HSBC Premier.

I'm currently moving house and so remortgaging with HSBC and their process has so far been robust but fair. The underwriter rejected my first request but for good reason and I should have no problem once I've settled on exactly how much I need.

Affordability is key and they will stress-test it in my case to 1.99% + 3%.