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

b33k34

mattjberry wrote: »

I clear £3700 every month in my bank. For someone to earn that much in paying tax i would have to earn £66,000 a year.

so when lenders are looking at my salary it isnt a true reflection of the real situation. I can afford a lot more

Sure, but even if you took your salary as the 'effective' 66k and added your wife's 22k in full you'd still be asking for 4.5 times joint salary and you're looking at an 80% mortgage which in the current market isn't a huge deposit. Add to that the risk that your tax status might change (your next job might be in the UK/you could lose your tax free status) and you look like a bad risk.

I don't think you're going to manage to borrow anything like that amount.

northerner999

If you are out of the country more than the 183 days then you can qualify as non-resident. Is this what you mean for why you don't pay tax? The 183 days is a GUIDELINE on such matters.

If so, then that will explain your difficulties. Also, if this is the reason why you do not pay incomce tax then buying a UK house to use as a residence (as opposed to renting it out, say) would mean you could considered a UK resident for tax reasons. I may have your situation wrong, but on my understanding I would not give out a high mortgage.

I live abroad and am paid in my country's local currency. Despite spending 10 months a years in the Middle East I would still be at risk of being considered a UK resident (and as such eligible to pay income tax on my earnings even though I am 3,500 miles away) if I maintained a property I do not rent out, had post sent to a UK address or am on the electoral register. I own property back home but rent it out, which is my proof of complete non-residence.