Why won't lenders consider me for a mortgage as i dont pay income tax

theartfullodger

have never had this problem before with previous / current mortgage.

Sigh! Dunno if the news got through but the world has changed, mortgages are harder to find, lenders are much much fussier...

mark55man

will you be living in the UK or not. if so will that tax free bit might be in jeapordy

if you are buy to let (to get foot on UK property market), then maybe you could look at something smaller

depends on your view on where the market is going -or if the bigger house is part of lifestyle choice for later

TEDDYRUKSPIN

I agree with herbies. It is not affordable in bank terms!

Q2. When I go to live or work abroad, will I continue to pay UK tax?

A2. If you remain treated as resident in the UK for UK tax purposes, normally you will be taxable on your income arising in the UK and overseas. If you are treated as resident and pay tax outside the UK we can give appropriate credit for any tax paid abroad.
If you become treated as non-resident, you will normally only be taxable on your income arising in the UK.
Q3. In what circumstances would I become non-resident?

A3. Normally if you leave the UK to work abroad full-time, you will become not resident and not ordinarily resident in the UK if

• your absence and employment from the UK covers a complete tax year (i.e. 6 April to
  5 April), and
• you spend less than 183 days in the UK during the tax year, and
• your visits to the UK do not average 91 days or more a tax year over a maximum of 4 years.

For visits to the UK, days of arrival and departure are not normally counted as days spent in the UK.

Trollfever

I can afford a lot more

As you bank with HSBC you will be aware that they have very considerable experience in lending to UK Expats.



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Wakey2008

Read TEDDYRUKSPIN's post above because it sounds to me like you should be paying tax.

I would get onto Revenue and Customs before they get onto you.

mattjberry

Must not have made it clear.

I'm not an expat.

I live in the uk but qualify not to pay tax as I work abroad more than 183 days each year.

I get that money every month regardless. I only have to prove that I do not have to pay the inland revenue some of the money back.

Obviously asking the wrong people here, who don't fully appreciate taxation rules.

mark55man

doh - its a public forum - anyone who could help you with the level of advice you appear to need would be charging for it. TBH that seems to be what you need

mattjberry

No problem, then if that's the case, back to an earlier question I asked...

Can you point me in the right direction a lender / specialist advisor?

Trollfever

can you point me in the right direction a lender / specialist advisor?

>>>>>>>>>>>>>>>>hsbc.

poodlehorse

mattjberry wrote: »

I am looking for a mortgage and I am finding that because I don't pay income tax due to the nature of my work (offshore), many lenders/underwriters will not consider me for a mortgage.

What is the reason for this?

Have you actually been told that is the reason they won't lend to you? Because I don't think what you do or the fact you get tax back is relevant (my DH is in same situation by the way so I do understand how this works). You are just asking for too much. You get a mortgage based on multiples of your salary it doesn't matter you get a tax rebate. Your salary has stayed at the £47K but your take home pay is that of someone paid much higher, I get that - but it isn't relevant to the mortgage application, in my view. What the rebate does allow you to do is overpay your mortgage by rather a lot every June or whenever they pay it in. Or move in a few years to the bigger house and not have to take out a bigger mortgage.