Halifax Proof of Income - mortgage decision

goldenfemale

I have just applied for a mortgage and was approved online, however they then asked my broker for proof of income (accounts) as I am self employed.

I contacted my accountant and he prepared profit and loss summary as an appendix with letter stating my deductible expenses, net profit for tax purposes and also listing real net profit after business expenses which is within the required amount I need. However if they take the net that I put through for tax purposes then I dont meet threshold (ie, current mortgage deduct interest, roof repair, car etc) which are really normal expenses but deducted cause I can.

My broker feels I need a fuller accounts but my accountant didnt do full accounts for self assessment clients (apart from profit and loss), I am now a Ltd Co but accounts not due till may and july?

My main client who I worked for over 4 yr also wrote letter stipulating my current money earned with them and also what I will earn now doing higher paid work (i do with them basically (90%-95%) of my total income).

I am so nervous, I really want this mortgage as its my dream home. Its a new build and I am putting 5% deposit and builders 20% - however it was all agreed, its just the proof of income now I am worried - will it do??

if it doesnt, can I appeal.

I am a freelance solicitor and not sure if they consider types of jobs as a good secure self employed work - its secure, but will they see that??

Any hints, advice/thoughts?

koexelek

goldenfemale wrote: »

However if they take the net that I put through for tax purposes then I dont meet threshold (ie, current mortgage deduct interest, roof repair, car etc) which are really normal expenses but deducted cause I can.

Unfortunately, that is the figure Halifax will want to use

dunstonh

However if they take the net that I put through for tax purposes then I dont meet threshold

Either your income declared to the HMRC is your income or you are committing fraud.

Historically, self employed individuals do try to reduce their income for tax purposes but the consequence of that is that your income is reduced for borrowing purposes. If you try and push your income upwards and show that the income was really higher than you declared then the accountant, mortgage broker and lender should really be reporting you under money laundering rules for tax fraud as its a clear breach under the money laundering regulations.