Private Mortgage - Private Income?

Ferferksake

I'm enquiring for a relation who has a private (legitimate) source of income. The income is variable as to both amount and frequency, but can be seen going through his bank account. What he does isn't classified as self-employed either, so he couldn't self-certify. Under the circumstances I can't think of a bank or building society that would be interested in lending to him.

Are there companies, groups or agencies where private mortgages or peer to peer lending can be applied for?

Thrugelmir

Never heard of "private" income. All income has a verifiable source.

Ferferksake

I perhaps didn't choose the right word. I meant private as in not coming from an employer.

holly_hobby

Source is not as important as for it to be declared to HMRC ?

IS it declared to HMRC via annual assessment ?

(Also why all the cloak and dagger as to its source, and what the remittance is actually for ? I say this, not from an inquisitive point of view, but only to say that the more details we have, the more relevant the advice provided)

H

RecoveringAlcoholic

Professional gambler?

getmore4less

Income from shares is fairly common source of personal income.

Ferferksake

Internet poker, non-taxable as long as you don't claim to be professional. Don't think a high street lender would be impressed to hear that as a source of income though!

jimpix12

You would need to self-certify for that apparently. See here: https://forums.moneysavingexpert.com/discussion/1929333

What deposit has he got?

I would also highly suggest he consults with a tax professional to make sure he doesn't owe HMRC anything; i.e. if he's just relying on what he's read on the internet about gambling taxation etc.

holly_hobby

Unless he has set up a business and trades as a gambler (i.e where for example you could effectively offset expenses, costs, and losses against gains), then if not carrying on such a trade, he is under HMRC rules, not liable to income tax on any lawful winnings. (there has been previous debate and confusion over this, but the above has been formally confirmed by HMRC as accurate).

However, in respect of reliance upon such income in support of a financial application, I am afraid that he wont find anyone to accept this basis. This is because the income can not be assessed as either being regular or of a minimum level, as in essence one can't predict just how many times he will win or lose, the regularity of it, or of how much capital will be involved.

Self cert would be the most sensible route to take, if there were any self cert lenders still about.

Having said that if he was looking for an investment propoerty, he would be able to effect a buy to let mortgage, where the provider does not seek proof of income or its source. (of course they will hold the reservation to do so if reqd) - in effect a self cert without being promoted as such.

The predicted rental income of the property (to suit lender critera and make it viable for the individual) should be circa 125% of the mortgage costs (which may be interest only). Of course there is other criteria that I wont give into just now, but happy to assist if he wants to consider a rental property instead of buying for his own residence.

However, regardles of whether income needs to be proven or not, your friend must really consider as to the sheer unreliability of his income, against a static and regular debt - that must be paid (along with other household costs), whether he has had a blast at the tables, or walks away with just the lining of his pockets.

Personally, I think the risk is just too great, to consider putting any reliance on servicing a mortgage from it - but I'm not him nor a very good gambler !! (£2 each way on the Grand National is about my level )

Hope this helps

Holly

handytips

Couple of interesting statements coming out here, there seems to be more and more of this going on, pro gamblers are a rare thing, most will tell all and sundry they are making mega bucks whereas in reality they may be on a bit of a streak, but believe me it will all end in tears. I wouldnt go anywhere near these kind of enquiries as the money laundering threat is there for all to see, the OP needs to tell whoever to declare thier income, as sooner or later HMRC will knock especially if they are not claiming benefits, i will let you all work that one out

holly_hobby

Money laundering is a procedure taken to disguise money's originating from illegal sources, as to appear to have arisen from legitimate sources.

In its simplest form being able to prove a legitimage source of your income or capital held.

If our guy from day one, can prove the source of his initial capital used to start his gambling "career", and that all subsequently achieved winnings, are from registered and licensed premisis e.g casino's (i.e - not talking a load of guys round a table in someones back room), he is obviously able to prove both his initial and on going sources of capital in question to HMRC if so requested.

Therefore if the individual does achieve his capital/income via licensed gambling prems, a brokers issue isn't ML, but finding a lending willing to accept the basis of such income (many will decline not only on the volitile nature of the source, but the fact that he is not paying income tax - albeit lawfully if he is not trading as a gambler).

H