Over many years, in cases where the SA302 is insufficient to backup a mortgage, lenders have asked to see the accounts to make sure there were, in fact, sufficient profits to have enabled extra dividends, in other words they review the available profits rather than the SA302.
My client is telling me that her broker is insisting that she must pay the maximum dividends (and so incur extra tax liabilities) to get her SA302 as high as possible, as it's only specialist lenders that are prepared to look at the accounts. From memory, with other clients, those specialist lenders have been included Halifax, Santander and Nationwide!
With not that much in profits, it would seem that she could process a £50K salary, putting the company into technical insolvency, but the lender would be delighted with the SA302!
She's getting upset with me and so I'm likey to give in but has anyone else had recent experience of lenders' lending policies on something like this?