PDA

View Full Version : Mortgage



dolly1985
16-04-2014, 09:41 AM
Hello,

In the future we may want to sell our house and buy a new one, is it easy to increase your mortgage when you are self employed?

Thanks

rickysmiths
16-04-2014, 12:47 PM
We did. You have to have Certified Accounts done by an accountant and have at least 3 years. We didn't use all my income as it can vary so we used only a third of my income which prob. helped.

HTSMumma
16-04-2014, 01:08 PM
My husband is a financial advisor. He recently came across a mortgage firm who would accept only one year's worth of accounts. I forget their name but I will find out if it helps. Many will accept two year's worth though. Speak to an independent financial advisor to help you find the kindest mortgage company to self employed folks.

We're looking to buy soon and hubs will be doing our mortgage. Our application will have to be absolutely perfect as his own mortgage application will be scrutinised by any mortgage company. We're both self employed so not sure how it's going to work when looking at our income!!

Simona
17-04-2014, 09:19 AM
Hello,

In the future we may want to sell our house and buy a new one, is it easy to increase your mortgage when you are self employed?

Thanks

The best thing is to seek professional advice on this as we here will have had different experiences.

Self employed people do have mortgages and CMs should be no different...there are millions of us!! The latest statistics show self employment is on the rise


The company offering you a mortgage will ask for evidence as all are different as each applicant is different....so yes accounts will be necessary...for how many years it will depend on the company
Financial advisors can be extremely useful in these cases as they can do a lot of the work for you

Follow their advice and above all....good luck!

samb
17-04-2014, 03:23 PM
I'm going through the process at the moment. I have a fab financial advisor who has taken my last 3 years figures but most will take an average of last 2 years apparently. Also she advised me to not put any expenses through as they will take the figure after tax. It's given me a big tax bill but means I can get a bigger mortgage so long term gain for us. We've agreed a sale on our flat just need to find a house now.

MAWI
17-04-2014, 09:30 PM
We bought a new house last year and Barclays mortgages just wanted clarification from the tax office of my earnings that I had submitted on my Tax retirn. Cant remember the name of the form but it was a P- something and took about a week to come through.

dolly1985
18-04-2014, 07:31 AM
Great-thanks everyone :-)

Kiddleywinks
18-04-2014, 08:30 AM
Also she advised me to not put any expenses through as they will take the figure after tax.

I'll be the first to admit I don't know much about mortgages, or about getting a mortgage now that self certificated ones don't exist, and whilst I can sort of see the logic in this to gain a mortgage, would the longer term implications not cause future difficulties....?

50% of previous years tax bill to be paid on account for the following year being one

If you are claiming any form of benefit based on your income, for another.
(tax credits for example - you'll have been overpaid for the year you haven't declared any expenses, have to pay back from your current year award the overpayment, and the following year you won't receive any or as much as you are entitled to due to your previous year's earnings)

Would HMRC not question the differences in your income enough to trigger an audit/inspection

Would not claiming expenses but paying 20% tax + National insurance, on earnings over the threshold make that much difference to the mortgage amount you'll get.....

samb
18-04-2014, 03:00 PM
I'll be the first to admit I don't know much about mortgages, or about getting a mortgage now that self certificated ones don't exist, and whilst I can sort of see the logic in this to gain a mortgage, would the longer term implications not cause future difficulties....? 50% of previous years tax bill to be paid on account for the following year being one If you are claiming any form of benefit based on your income, for another. (tax credits for example - you'll have been overpaid for the year you haven't declared any expenses, have to pay back from your current year award the overpayment, and the following year you won't receive any or as much as you are entitled to due to your previous year's earnings) Would HMRC not question the differences in your income enough to trigger an audit/inspection Would not claiming expenses but paying 20% tax + National insurance, on earnings over the threshold make that much difference to the mortgage amount you'll get.....

I worked it out and yes for me it is worth it...
1. I don't have any benefits so doesn't affect me
2. I would have been just over the threshold for paying on account this year even if I had taken off expenses so yes it's a large amount but I have been putting money away for this anyway so not a problem- already have it all in an account. If you pay too much it gets deducted eventually so yes short term loss
3. I don't mind being audited... I have nothing to hide
4. Yes it made enough of a difference for us to do it- the difference between 290k and 330k so fingers crossed!

Kiddleywinks
19-04-2014, 10:18 PM
:thumbs up: Sounds like you have all your bases covered lol

Happy house hunting ;-)