Self employment and mortages!!!!

[Stephen Blair]

You would have the debt and it would be up to you to make the payments.

 

 

 

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[steve@black]

Not the point I was making.

[Spruce Pirate]

I am not saying this happens at all but what would the chances be if a self employed person did really well for two years , got a mortgage and then would you believe it the following year net profit drops dramatically:001_cool:

 

What would happen if an employed person got a mortgage on the strength of their current employment and then either found themselves changing jobs and ending up with a lot less income?

 

Unless you're suggesting that self-employed people deliberately cook the books in order to get the mortgage approved.

 

In either case:

 

You would have the debt and it would be up to you to make the payments.

[aspenarb]

One of the lads that worked for me a few years ago went on his own and although he ran his own business he stayed PAYE. When he needed a mortgage he went through a broker and it was plain sailing , he has just bought a buy to let as a second property. Two properties as a 25 year old is not bad going and we are in the south where everything is mega expensive.Mind its tougher now than it was,I remember the days of buying houses and farms over the phone with the bank managers blessing, those days are gone.

 

Bob

[hamdogg]

I have applied for a mortgage with my partner in the last few weeks.

 

Initially it was tricky, as my HMRC earnings were low due to tax releif on capital spends.

 

However my accountant and the financial advisor just told me to remove the capital allowance from my self assessment forms, and reapply to the govt for SA302 forms. On paper, I then appeared to earn a much better taxable wage, and the bank were more than happy.

 

I was assured by both the accountant and the financial advisor that this was not fraud, and I will be more than welcome to claim the tax back again once I have secured the mortgage. I am a very honest and transparent guy, and I wasn't comfortable with this, but I am assured there is nothing wrong with it.

 

So yeah, if you have 2 years of records, amend your tax returns to reduce expences, get mortgage, amend once again to make them good. Apparently there is nothing wrong with this whatsoever.

 

Its a pretty stupid system.

 

 

I don't understand this, but I'll admit when it comes to this stuff I am a rookie!!

[Stephen Blair]

Personally I don't see a need to amend your books, the bank should look at the figures before depreciation on equipement.

 

 

 

 

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[hamdogg]

Personally I don't see a need to amend your books, the bank should look at the figures before depreciation on equipement.

 

 

 

 

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I Agree!

[Stephen Blair]

Remember, accountants and financial advisors will say stuff, but will they be pushing infront of you to take the blame if there is a problem?

If in any doubt, call the tax office.

They are not just there to catch tax dodgers, they are there to help you.

I've always had good results just asking directly.

 

 

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[Tom D]

Its a stupid system, we have been really lucky, we bought when my wife was working and quite well paid, and our fixed term ended on our mortgage leaving us paying base rate +1% interest only! We pay about £160 a month on a £150k mortgage...

Our income is good now as business has been ok, so we could probably remortgage if we wanted to, understandably we don't....

 

The banks were throwing money around like confetti a few years ago, now they have gone too far in the other direction.

[hamdogg]

Well I'm speaking to the mortage man today so I'll report up on how I go on!