View Full Version : Getting a mortgage offer
What figures do mortgage companies look at when you apply for a mortgage as a self employed person? Is it the figure you get from income minus expenses or the figure after paying tax? Is it ok to not put through all the expenses I could claim for to make the figure higher? I obviously don't want to do anything illegal - I am thinking all the little things like cleaning products for example add up over the year but can I just have paid for those out of my own pocket if you see what I mean? Really appreciate any advise - I really want to move but obviously want to do it all properly too- I just don't know what properly is! Also I do my own accounts- what documentation do I give? Obviously if you're employed you have your payslips- what do I have?! Just my own accounts? Is this ok?
loocyloo
27-02-2014, 09:37 PM
When we were looking for a new mortgage the bank was only interested in my income AFTER tax and expenses etc. They kept saying I had all these expenses etc to pay out and therefore couldn't count on that money. ie ... You have to pay car tax petrol insurance etc despite my saying that actually dhs car costs were higher than mine!
Whereas ... They looked at DHs income BEFORE tax!
BUT both of our incomes before tax ( and anything else for me! ) was the same amount!!! Total madness!
We ended up using a mortgage broker who found a bank who would look at my total income not my taxable income as understood that as a childminder we get dispensation for things!
Good luck x
Edited to say that I just showed them my accounts book ( I use pacey (was ncma then) and a copy of my tax return showing income/expenses/tax etc
When we were looking for a new mortgage the bank was only interested in my income AFTER tax and expenses etc. They kept saying I had all these expenses etc to pay out and therefore couldn't count on that money. ie ... You have to pay car tax petrol insurance etc despite my saying that actually dhs car costs were higher than mine! Whereas ... They looked at DHs income BEFORE tax! BUT both of our incomes before tax ( and anything else for me! ) was the same amount!!! Total madness! We ended up using a mortgage broker who found a bank who would look at my total income not my taxable income as understood that as a childminder we get dispensation for things! Good luck x
It was wishful thinking that there would be an easy answer then?! Lol thank you!
benandjerrys
28-02-2014, 07:58 AM
It's easier if you use an accountant. Do a post on the forum of money saving expert, some very knowledgable people on there money wise.