Technical issue

R

Rujib

Registered User
Messages
79
Hi,

I have applied for a mortgage to a well known Irish bank. I happen to be listed as a director of my employers company. I do not have any shareholding whatsoever, I am just a named director, so I can handle certain legal transactions on behalf of the company, as all other directors reside abroad.
The bank however, insist on me giving them copies of past 3 years audited accounts, before they finalize my application!!!

I simply cannot understand the logic. Can anyone enlighten me?

R
 
Yes! I still do not fully understand the requirement for me to submit full 3 years accounts as it is not my company.
My relationship with my employer is as a PAYE employee!!

T
 
Hi Rujib, do you have an indemnity from the other directors as regards potential issues that might arise from company dealings? If not, then you are a director with all the duties and responsibilities that go with that. And that is why the bank want the accounts. Maybe time to take a look at whether you really should have accepted the directorship?
 
I think you may find that being a company director has more responsibilities than you realise.
 
give them a CRO search showing the shareholding and a letter on headed paper letting them know you are named only and not a shareholder at all.

they may feel that as a director that the firms survival and your job prospects are highly correlated, for instance - if you are a only a 'named director' of a software firm and are the software architect as well then they might want to look as much at the company as they will you.

is there a reason you are not willing to comply with their request? the co. accountant could probably clear this up with a phone call, see if that will work or try to find out why they are asking, the underwriters will let you know the reason.
 
Hi Rujib,
I think that since you dont have more than a 5% shareholding that you dont need to submit company accounts and that a salary cert as a PAYE employee would suffice. I think this is a case of the mortgage being packaged and submitted incorrecly to the underwriter.
I think you need to contact your bank to confirm your employment details i.e you are a permanent employee and dont receive any dividends etc.
Spin
Mortgage Broker
 
Rujib, if you have been with the company for at least 5 years and show a salary on you P60's covering your required loan, then there is no reason for the bank to see the company accounts especially given the fact that you are a non shareholder. I have experience with banks requesting this information only for their own benefit and not concerning you - the loan requester. Banks will ask you what you had for breakfast and if you tell them they have more information.......... On one occasion my husband was looking for a top up mortgage (he runs his own limited company and is 100% shareholder), the bank requested his accounts. I argued that he is an employee and produced a P60 along with a letter confirming his years service in the company - Guess what - it was accepted. I believe the banks should only get the information needed to confirm your ability to repay no more and no less.
 
I applied for a mortgage last year and at the time I was a director(16.66% share holding) of a company.
I went through good old REA(RIP) and as long as I was below a certain share holding(20% I think) and was PAYE paid(not based on company profits) that there was no problem and there wasn't.
But that was UB and I'm sure different banks might have there only variations.
 
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