Self employed mortgauge???

Andysstuff

Im in a bit of a pickle.... i have my house sold and due to complete but my existing mortgauge lender and a few other ive tried have told me that they will only take into account my last years tax return and also they wont except gross or net figures only Net profit figures which mean i cant get the £115,000 i need..

Is there anyone that will borrow on gross or just net ??? and take an average over the last three years not just last year as it wasnt my best year????

I have a perfect credit score, no debt or finance just a mortgauge and house hold bills.

Oh and i have a deposite of £66600 and im looking at £181500 house thats gives me 64% LTV

Any advice welcome as this has come about on christmas eve

wearside_2

Andysstuff wrote: »

Im in a bit of a pickle.... i have my house sold and due to complete but my existing mortgauge lender and a few other ive tried have told me that they will only take into account my last years tax return and also they wont except gross or net figures only Net profit figures which mean i cant get the £115,000 i need..

Is there anyone that will borrow on gross or just net ??? and take an average over the last three years not just last year as it wasnt my best year????

I have a perfect credit score, no debt or finance just a mortgauge and house hold bills.

Oh and i have a deposite of £66600 and im looking at £181500 house thats gives me 64% LTV

Any advice welcome as this has come about on christmas eve

A dictionary might be a good present to receive! Mortgage, deposit, wasn't, that's, I've, I and accept may help your request for advice look better!

In answer to the query, I have no knowledge of anyone in the current climate who would accept Gross income rather than net. Perhaps an independent mortgage advisor or someone else may be able to help you.

Thrugelmir

Andysstuff wrote: »

Is there anyone that will borrow on gross or just net ??? and take an average over the last three years not just last year as it wasnt my best year????

Net income from your trade or business represents your disposable earnings. Gross earnings or turnover can be very misleading. (See my signature).

In the current economic times lenders are going to be cautious. Has 2010/11 been a better year than last year for the same period ?

leveller2911

Thrugelmir wrote: »

Net income from your trade or business represents your disposable earnings. Gross earnings or turnover can be very misleading. (See my signature).



Just out of interest for an employed person do they have the same criteria? ie net profit ? or do they accept gross earnings?

Nice sig BTW

HappyMJ

leveller2911 wrote: »

Thrugelmir wrote: »

Net income from your trade or business represents your disposable earnings. Gross earnings or turnover can be very misleading. (See my signature).



Just out of interest for an employed person do they have the same criteria? ie net profit ? or do they accept gross earnings?

Nice sig BTW

It's basic gross earnings from a wage or salary. i.e You are paid £35,000 to work here a year or are paid an hourly wage of £15 for 35 hours per week. It does not include overtime or bonuses.

Net profit for a self employed individual is earnings after indirect expenses but before any taxes have been taken off. Some mortgage companies did allow gross profit figures years ago but I think it's much harder to find one now but when someone finds one let me know. My T/O is around £25k, my GP is around £20k, my NP is around £2k.

leveller2911

HappyMJ wrote: »

leveller2911 wrote: »

It's basic gross earnings from a wage or salary. i.e You are paid £35,000 to work here a year or are paid an hourly wage of £15 for 35 hours per week. It does not include overtime or bonuses.

Net profit for a self employed individual is earnings after indirect expenses but before any taxes have been taken off. Some mortgage companies did allow gross profit figures years ago but I think it's much harder to find one now but when someone finds one let me know. My T/O is around £25k, my GP is around £20k, my NP is around £2k.

Thanks for clarifying that, I'm hoping to buy in the next 12 -18 months,FTB and self employed .

I can't understand why Mortgage companies would allow gross profit? including indiect expenses seems incompetant to me and def not good business sense.

Andysstuff

Last year my gross was just under 25K then less expenses.

Its a net profit of 15k due to massive fuel bills working away from home and running costs of my van etc it soon mounts up!

So next year to get a better net profit i will have to bite the bullet on all my bills just for it to show up on paper that my profit is more!!!!

Also even if you are on an employed wage you now have to declair child minders/ nursary fees! that can take off a fair chunk! also do you think you should have to declair fuel and running costs of your car if employed???

comping_cat

Ive just re mortgaged as i had come to the end of my last deal - i am a self employed child minder so dont earn very much. I am lucky because i have made lots of over payments so my mortgage is small compared to a lot of people, but although my net takehome was not enough to cover what the mortgage companies, my advisor said that i could include everything that i had coming in. So this included child benefit, tax credits, CSA etc.

It is very difficult now for a self employed person, as the tax man said to me once, you always try to show you earn as little as possible, to reduce your tax bill, however now they have started doing away with the self certificating mortgages it makes it very difficult!

FantomX

Andysstuff wrote: »

Last year my gross was just under 25K then less expenses.

Its a net profit of 15k due to massive fuel bills working away from home and running costs of my van etc it soon mounts up!

So next year to get a better net profit i will have to bite the bullet on all my bills just for it to show up on paper that my profit is more!!!!

Also even if you are on an employed wage you now have to declair child minders/ nursary fees! that can take off a fair chunk! also do you think you should have to declair fuel and running costs of your car if employed???

Declare is not a pastry with a "d" at the beginning i.e. declair, and a mortgage does not "gauge" anything either! Jesus wept!

Bottom line is you don't earn enough, so if I were you I'd start looking to become full time PAYE employee working for someone that is far better at business than you are! Harsh but true!

FantomX

comping_cat wrote: »

It is very difficult now for a self employed person, as the tax man said to me once, you always try to show you earn as little as possible, to reduce your tax bill, however now they have started doing away with the self certificating mortgages it makes it very difficult!

it is very difficult!

Andysstuff

I earn between £500 & £600 a week but its the way that they they now look at lending that is the problem for me, i can easily afford the this mortgage i have no oher debt at all and my LTV would be 64% and i would have put down a deposit of £66000 oh and a perfect credit rating! Would you borrow me the money???

The mortgage would be £600 a month, so all i can do is not claim for anything on my tax return in April to show max net profit but this will affect my girlfriend as she gets nursary fees paid for !! oh and i will have to pay a chunk of tax to lol

Sound Fair?