Self employment and mortages!!!!

[the hedge man]

They would prefer you to stack selves in asda on full time employment earning £200 a week like I said to my mortgage women if your self employed your keen to work and want to make money I've never been out of work but they don't see it like that!

 

Stack shelves (or in my case a greenkeeper on a golf course) full time and be self employed on top. That's the way I do it and I'm fricking loaded lol

[hamdogg]

I've no interest in working on the books for anyone!!

[Tony Croft aka hamadryad]

Bankers control the money supply, they expand it and contract it according to their needs.

 

Max Keizer would be a good place to start looking at the reasons why mortgages are hard to come by right now, one of them is that England PLC or rather (corporation) is bankrupt, yes i did say that!

 

There are advisors that can help, they are hard to track down and charge a fair bit for the skills, but essentially if you want a mortgage or remortgage right now your going to have to box clever.

 

I personally wouldnt recommend getting into one right now, I got out of mine recently for the very same reasons i wouldn't take one for a while. The bankers are playing a game of monopoly right now, interest rates we have enjoyed for some time are not going to last. if your old enough youll remember your parents struggling through the markets crashes, but I suspect this one is going to make that one look like kids play.

 

One of the reasons they maintain bubbles is the release of equity, house prices rise beyond TRUE value, folk release this fantasy money and pump it into an economy that cant sustain itself with goods created. Thats why Pensions just got relaxed, so the older gen with the most backup can also pump real money into a failing economy.

 

Theres trouble ahead will robinson.

[rovers90]

One major problem is that most self employed do everything they can to keep their tax liability down each year.....this doesn't help mortgage prospects

 

As an ex mortgage advisor with a high street bank, Steve has hit most of the problems we had with self employed people on the head. You cannot have it both ways. I used to deal with a lot of taxi drivers and takeaway/restaurant owners who obviously take a lot of their sales in cash. Do they bank it all?? No way. The bare minimum to pay as little tax as possible. They then wonder when their accounts show £7k net profit pa why you will only give them a £28k mortgage. I remember asking a customer for his accounts and he replied "Which set do you want?" They had actual accounts based on their actual turnover and then a different set for the tax man.

 

I'm not saying tree surgeons fall in to the above examples (never saw a tree surgeon in 7 years of doing mortgages actually) but if you are doing everything to keep the tax down it will effect your mortgage chances as your net profit will be low.

[hamdogg]

The net profit I got from my account is a lot more than that's on the form the mortage folk want to see!!

[Billy]

As Rovers 90 says above most SE declare barely anything them want a mortgage on their promise of "but really in earn another 30k on top of that in cash" or similar, that's worthless. Providing you are trading profitably and making good money consistently if you declare it it shouldn't be too hard to get a mortgage I got my first last year and. It was pretty straight forward, worst part was the condescending financial advisors assuming they can talk down to ' a simple tree cutter' about turnover net profit and asking if I was confused between the two!

 

 

WM Tree Services

 

http://www.bestkenttreesurgeons.co.uk

[martwizz]

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.

[Acg128]

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.

 

Amend 2 years old books???

[Spruce Pirate]

My wife and I are both self employed, we got a mortgage with no problem at all. I don't think it's the being self employed that is the problem, but as other's have said, the tendency for us to try and minimise our earnings for tax, hence big spends at the end of the financial year. If you declare your correct earnings and are applying for a mortgage within your means, IME, you shouldn't have a problem.

[steve@black]

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: