Self Employed Mortgage HELP

miha_2

Hi,

My husband and I are self employed and we need help with a basic question:
When underwriters look at a self employed income what do they actually look at:

As a self employed we have the following accounts:
GROSS annual income (the highest amount)
GROSS Profit (net profit + tax)
NET Profit (gross annul income -deductions - tax)

At nationwide they ask for NET Profit before tax (which in my opinion is gross profit correct???)
I have been in contact with two mortgage brokers one said you can't get a mortgage and the other said I can. I called nationwide and they have confirmed they will look at GROSS Profit.

I would really appreciate help on this as we really want this place and the advice is soooooo confusing, and we do not want to waste money on valuation fees.
Please help

Thank you

Ps: sorry for the long post

koexelek

It is definitely the NET profit, that all lenders look at.

i.e. the figure you pay tax on.

Gross profit is the top line, you take off the expenses, and the figure left is the net profit.

miha_2

koexelek wrote: »

It is definitely the NET profit, that all lenders look at.

i.e. the figure you pay tax on.

Gross profit is the top line, you take off the expenses, and the figure left is the net profit.

For argument sake let's say I have a gross of 30,000 after i teke the expenses out I am left with 25,000 after which the tax man comes and ask for 20% of the 25,000

The lender (nationwide) will look at the 25,000. Not the 25,000 - 20%

Thank you for your quick response

olly300

miha wrote: »

For argument sake let's say I have a gross of 30,000 after i teke the expenses out I am left with 25,000 after which the tax man comes and ask for 20% of the 25,000

The lender (nationwide) will look at the 25,000. Not the 25,000 - 20%

When they ask permanent employees their income they ask it before income tax.

herbiesjp

It is the NET profit before tax

miha_2

olly300 I agree but there seems to be a diffrent system for self-employed people.

I will then declare 25,000. (net profit before tax)

Thanks everyoane.

keep the advice comming as I am sure there are a lot of people in our situation.