Dear Lord HELP!

clusters

Hello there, I'm sorry that this will likely overlap with other threads but I'm so confused I'm in tears.
Basically, me and my partner want to get a first time buyer mortgage. He is self employed and in order to keep the tax man's salary at a minimum, his net profit for three years shows at about £9-10K but obviously he has more. I have a basic of £15K but my boss has said he will show a higher figure if it helps.
We don't have a deposit but could get up to £15K for one if we could pay it back on completion. I have a default on my credit history from 2004 (long story, not my fault but it's there so I have to say) I will have paid it off in November but the repayments are with a debt recovery firm so they don't show on my credit history. The rest of my history is clean and I got a small loan through my bank last October.
We have spoken to a couple of people and each one says something different- so far 100% mort (building to 125%) so we can buy somewhere cheap and do it up. Think it was 6.25%apr. Self cert mort but need a deposit. Buy off plan with a developer that pays your deposit. And the last advice was wait a year, save up and go from there. This isn't so good as I have to be out of my home in 2mths so time is of the essence and I would have to rent so wouldn't be able to save.

Can anyone tell me if these options are any good, what other we may have or if I basically am screwed??

Want to borrow about £140-150K and pay no more than £750 a month.

PLEASE HELP, I'M DESPERATE!!!!

Clusters

toonfish

they are all viable options, but you'll not get £150K for £750 per month unless you do it interest only and very few lenders will advance that much. Have you considered shared ownership?

owner

I bet your boyfriend wishes he hadn't conned the taxman now.

clusters

It wasn't a con. Most self employed people keep their net profit down. It's all through a professional accountant and above board, just inconvenient now!

When you say shared, do you mean with say a friend or another couple? I'd rather not financially commit to someone else, been burnt in the past.

toonfish

shared ownership let's you buy for example 75% of a property, generally through a housing association and you pay rent on the rest. The same scheme is available through certain mortgage lenders, they retain a share in the house.

pollyanna24

Even if, as you say, you haven't conned the taxman, I assume he is still paying less tax than me for example, as I am PAYE. Now if you'd done the sensible thing and saved the difference in tax, you may have a deposit.

You've gotta understand that not everyone is sympathetic when they see people paying less tax than them just because they have a different style of job.

PS. It's also annoying to see in a post "We want to borrow X, but only want to pay Y a month."

I want to borrow £1m, but only pay back a £10 a month. It just ain't gona happen, is it?

toonfish

pollyanna24 wrote:

Even if, as you say, you haven't conned the taxman, I assume he is still paying less tax than me for example, as I am PAYE. Now if you'd done the sensible thing and saved the difference in tax, you may have a deposit.

You've gotta understand that not everyone is sympathetic when they see people paying less tax than them just because they have a different style of job.

that's why he's taken the step of going self-employed and given up the security of a "normal" job. There are meny legitimate ways to reduce th etax burden which unfortunately do not help when it comes to borrowing money but it's not right to accuse someone of conning or defrauding the IR.

pollyanna24

Nowhere in my post did I say he did con the taxman, there's just no point whinging when you have to pay more for a mortgage or can't get the one you want. Like you said, he chose to give up the security and therefore has to pay the cost in some way and it appears that this is it!

Just so people don't think I'm being entirely unhelpful, when my bf was in this situation, he got a PAYE job for a few months, and then went back to his self employed status after we had secured the mortgage.

cloud_dog

pollyanna24 wrote:

Nowhere in my post did I say he did con the taxman, there's just no point whinging when you have to pay more for a mortgage or can't get the one you want. Like you said, he chose to give up the security and therefore has to pay the cost in some way and it appears that this is it!

Just so people don't think I'm being entirely unhelpful, when my bf was in this situation, he got a PAYE job for a few months, and then went back to his self employed status after we had secured the mortgage.

Jeez, even if your bed is against the wall I'd say you managed to get out the wrong side!

clusters

Wow, I didn't mean to cause offense! I'm PAYE too and have always been so. I wasn't whinging about it I thought it would be an important detail in someone helping me.
I only mention how much we would like to borrow and pay back monthly because I have been given loads of different quotes, some fall in the cost we can afford, some don't- again- was a guide so someone could say yes you can do that, or no you can't.
We would have saved for a year but unfortunately some bad news has put us in a position where we have no time, it's not a choice, it's just how life works.
I posted here to try and see if someone could help me, (thank you to the one who has) not to get abuse!

yus786

clusters wrote:

I have a basic of £15K but my boss has said he will show a higher figure if it helps.

I wish you all the best with your situation but please be careful re: the above.

One of my friends showed a higher figure and it came back to haunt him a few months down the line - so just be careful.

All the best