Coronavirus - Help us to help you.

We have temporarily reduced our opening hours.  From Monday 8 June our Principal Office will be open Monday to Friday, 9am to 6pm and closed on Saturdays. Please be patient with us while we work hard to minimise the impact of COVID-19 on our services. We apologise for any inconvenience this may cause.

Due to unprecedented demand we are extremely busy at the moment and our service levels may be longer than normal.  We apologise for any inconvenience this may cause.

Key Temporary Criteria

  • Maximum LTV is 80%
  • We are now accepting new build applications up to max 80% LTV (60% for flats)
  • We have temporarily withdrawn all shared ownership products
  • We will consider furloughed applicants by referral only. Please contact us to discuss with full details of the circumstances before submitting an application
  • We are conducting desktop valuations on all applications up to 70% LTV that meet our AVM criteria. These can then progress to offer as normal. Applications above 70% LTV and those that do not meet criteria, will be progressed as far as possible and subject to a physical valuation before a binding offer can be issued. We are now instructing physical valuations in England & Wales

 

Thank you for your patience
The Melton for Brokers

THE INFORMATION ON THIS WEBPAGE IS FOR THE USE OF PROFESSIONAL INTERMEDIARIES ONLY

Self Employed

23/08/2017

Applicants must have been trading for a minimum period of 24 months

For self-employed applicants and company directors owning 331/3% or more of the company, the following are required:-

  • LTV < 75% – most recent two years accounts or SA302 documents and respective Tax Year Overviews
  • LTV > 75% – most recent two years accounts and an accountants reference
  • BTL Applications – latest year’s accounts or SA302 documents and respective Tax Year Overviews

Profits:

  • Stable/increasing net profits: The average pre-tax net profit (or share of) from the latest 2 years accounts provided will be used to calculate income
  • Unstable net profits (i.e. where profit increases and decreases over the three year period, or where profits increase or decrease by 20% or more from one year to the next): a satisfactory explanation must be received from the accountant. Where a satisfactory explanation is received the average of the 2/3 years most recent accounts will be used
  • Declining net profits (more than 20% year on year) are not normally acceptable

The income of company directors will be based on the lower of either:

  • an average of salary and dividend payments in the last two years, or
  • the most recent year’s income

Where the applicants own 100% of the shares in a company then the residual net profit may also be taken into account

Verification:

  • A statement from an accountant con rming the profits before tax for the last 2 years plus a projection is required in all cases where the loan to value exceeds 75%
  • Acceptable Accountants qualifications are ACA, ACCA, ACMA, CPFA, FCA, FCCA, and FCMA*. Other accountancy qualifications may be acceptable but would need to be referred for consideration
  • SA302 documents will only be accepted where the loan to value is less than 75% and income can be validated through bank statements

For professionals:
(Solicitors/Architects/Accountants/Dentists/Doctors/Surveyors/Pharmacists/Vets) a minimum of one years accounts are required as long as they have been working as part of an established partnership of at least two years standing. The maximum LTV will be restricted to 90%.

Sub-Contractors:

  • Sub-contractors must have been in that position for a minimum of 12 months and be able to prove income by reference to accounts prepared by a recognised accountant or by reference to HMRC documentation

*AFA or FFA will be acceptable where the LTV is under 50%

Service Update

Due to unprecedented demand we are extremely busy at the moment and our service levels may be longer than normal.

We apologise for any inconvenience this may cause.