bank statments and husbands wages paid into my account

Kimberley82

We are hoping to get mortgage at the end of the year. It will be in my husbands name only as I have just gone self employed.

People have been saying they need 3 months bank statements, but his wages get paid into my account. Will this matter? The only thing going into his account is the child benefit.

Will it matter I have a £400 over draught that we use a lot?

hcb42

We recently had to provide evidence of salary being paid in. If it goes into your account and you are not on the mortgage, then it does leave you a bit exposed. Why not just pay it into his own account now, you have several months before you need to produce the statements if you are looking at end of year

CloudCuckooLand

I don't think going self-employed is a reason to not be on the mortgage. Being self-employed may mean you cannot prove income to help boost the income above your hubby's. But having little provable income doesn't detract from his income...

Using joint account is going to be a financial link, so best to be up front and do joint app anyway. You being self-employed might help reduce the "dependant" element of affordability, too...compared to saying you just live there and are dependant.

Stop using the overdraft. If you can afford the fees and costs of buying a house, clear the overdraft and don't go in it again. By the end of the year that will have passed into history.

Kimberley82

CloudCuckooLand wrote: »

I don't think going self-employed is a reason to not be on the mortgage. Being self-employed may mean you cannot prove income to help boost the income above your hubby's. But having little provable income doesn't detract from his income...

Using joint account is going to be a financial link, so best to be up front and do joint app anyway. You being self-employed might help reduce the "dependant" element of affordability, too...compared to saying you just live there and are dependant.

Stop using the overdraft. If you can afford the fees and costs of buying a house, clear the overdraft and don't go in it again. By the end of the year that will have passed into history.

I think I am going to ring the bank and get rid of it next pay day. I took it out 10 years ago and have just never gotten rid of it.

We want it to be in his name only as my credit isnt as good as his. Maybe we should get a joint account again, we did used to have one.

His account is so basic he doesnt even have a debit card, will this matter?

hcb42

well it matters in that it is impractical, can he not upgrade it?

Thrugelmir

For simplicity, it is advisable to run your "business bank account" for your self employment seperately to your household finances.

jamesd

When you have a joint bank account that creates a financial association between you. This means that lenders who seek the credit record of one of you will get the record of the other one as well. This doesn't happen if his wages are paid into a bank account that is in your sole name.

His bank account type won't matter for the mortgage so long as it's not a joint account.

As Thrugelmir wrote it's also a good idea to have a different bank account for a business because that makes it easier to keep personal and business accounting apart and know when you're putting money into or taking money out of the business.

Kimberley82

I do have a business account for my business that is separate from my normal one.

I think we are linked anyway as when you look at our credit scoring we are.

Its not impractical as he never used his account, the CB goes in and my car payment comes out.

They wont let him upgrade as its not a used account.

I pay for everything from my account, bills, shopping etc.

Wh05apk

Kimberley82 wrote: »

People have been saying they need 3 months bank statements, but his wages get paid into my account. Will this matter? The only thing going into his account is the child benefit.

Will it matter I have a £400 over draught that we use a lot?

"People" do not lend you the money, banks do, so it does not matter what "people" say, few banks ask for statements.

Having an overdraft will make no difference, provided you keep within it, do not cancel it, unless they are charging you for it.

As has been said, you should try to do in joint names, if you can't do then consider just in your husbands name.

Kimberley82

Wh05apk wrote: »

"People" do not lend you the money, banks do, so it does not matter what "people" say, few banks ask for statements.

Having an overdraft will make no difference, provided you keep within it, do not cancel it, unless they are charging you for it.

As has been said, you should try to do in joint names, if you can't do then consider just in your husbands name.

If we do do it in just my husbands name will it matter if they do want bank statements that he doesnt have an active back account?

Wh05apk

Kimberley82 wrote: »

If we do do it in just my husbands name will it matter if they do want bank statements that he doesnt have an active back account?

Probably not, but really try to do it properly first in joint names.