Help! Advice please on self-employment criteria

woodyoneshoe

My daughter is in the process of moving house. She is currently with the Nationwide. Having spoken to a mortgage advisor she was told the sum they would be prepared to lend her & her partner. They only want an LTV of 27%. They have a fairly low joint income but lots of equity and extra savings to add to the pot. Now at the last minute they have refused the application because her partner (a part time house husband really) has a low income, does not pay tax & is self-employed. Because his income is so low he self-certifies rather than pay an accountant. They knew this when they made the offer, he has his books going back 10 years. Why go back on it now? They could now loose their sale & new purchase because of this. Is there anyone who might accept his income? Or should she try to get a mortgage on just her income?
I am hoping someone has had experience of this! Thanks.

GMS

As long as teh self employed income has been submitted to the Inland Revenue then it can be used. Lenders will want to see SA302's for the last 3 years typically. These can be requested from Inland Revenue.

Whether the income is sufficient for the loan is another matter. You say he pays no tax so it must be below the tax threshold??

woodyoneshoe

Yes that right. He has filled in Inland Revenue tax forms in the past & has been told by them not to submit any more until his income reaches the tax threshold. Although his income is small if it could be counted it would make the difference for the mortgage they need. My daughter is the main earner.

GMS

Could he not file his returns anyway? Even if there is no tax to be paid it would prove he exists.

woodyoneshoe

I think it's too late for that now. I expect it would be best for my daughter to be the single applicant for the mortgage and perhaps we can make up the shortfall. I assume he can still be named as joint owner as he will still be contributing his savings to the pot. It seems to be the underwriters that have changed their mind, why I don't know!