Mortgage letter

Rachel

Hello

I have a client who is trying to get a new mortgage. I have supplied Self Assessment and Annual Accounts and they are still struggling to determine the clients income. They would like a letter detailing how much is taken out of the business monthly, obviously this varies. I understand that they want to make sure that the client can pay their mortgage. Has anyone else had to do this recently? Do you have a template?

Kind Regards

Rachel

shadeofblue

Personal (residential) mortgage ? or mortgage on Premises ?


if personal suppose they want a detailed expenditure breakdown to see if there income covers there expenses and that they can afford the mortgage

Rachel

Personal, yes I agree they need to prove that they can afford it but surely SA, CT and Accounts should be enough.

Rachel

I do have a copy of the letter from the MIP toolkit but also wondered if I should go into specifics and wondered what others experiences were.

Thanks

Monsoon

It really shouldn't be necessary. Trouble is, bank managers don't really know what they are asking for. It sounds like they want to know he has good cashflow as well as enough income.

Assuming his business and personal bank accounts are separate, the monies coming into his personal account should show what he takes from the company and when.

However - SA, CT and Accounts should indeed be enough!

I would be inclined to simply say "In the past, Mr X has taken all available profit [or as applicable] out of the business and we see no current reason why this would change."

Don't give more than you need to, and make sure you cover your back.

Rachel

Thanks Monsoon, it is the covering my back that I am now concerned with because I feel I have provided everything possible without spelling out every transaction.

Monsoon

And clients wonder why we want to charge for giving mortgage references.....!!!


Cover your back by giving a caveat to everything you tell 'em - and make sure the client pays you for the extra work!

Rachel

Well client not happy with my "disclaimer letter" and want to write own. This must be where lots of client relationships breakdown as they want the best deal but we can't stick our heads on the block

Monsoon

The bank would love you to guarantee the client's income. We can't, we aren't clairvoyant.

Don't spend too much time on this, because they are asking for something we can't give. You've done all you can. Good luck!

Rachel

As expected the mortgage advisor has said that my letter is not good enough. They require 2 years audited accounts when she has only turned over say £20k and only second year of trading. Also, they don't seem to understand dividends and say that the salary of £6k is not enough.

Obviously, my client wants my help but I don't think there is much more that I can do. Does anyone have a nice phrase that I can say this without offending my client?

Does anyone know of mortgage companies that provide mortgages to people with several sources of income rental, company salary and dividends and additional salary?

I always feel guilty - I probably need to toughen up.

Thanks

Rachel

Rachel

Please can you expain to me how your members will help me, are they more superior than people on here? Does anyone sign up to www.help4accountants.co.uk. Why would I pay £60 when it isn't clear what your website is.

Are you just going through all the old threads on here and advertising erm spamming

Monsoon

This guy has been reported for spamming lots of times.

Rachel

I have reported too, such time wasting and possibly conning people to give up their money drives me crazy

Rachel

His name is Foz Hussain

Rachel

Now it looks like I have been talking to myself! But happy he has been removed