Dear Lord HELP!

pusscat

Hi there clusters

I am ignoring the "We only want to pay X for Y a month" question as I don't know enough about that, but I can't see how you can borrow that much money for such a low repayment.

Your origional post about your OH's earnings is a bit unclear which I think may have confused other posters - it certainly confused me - but it is after 4pm!!!!

There are 2 potential scenarios here

1) your OH's company shows a profit of £10k but takes out a salary at a minimum level (so he is registered for tax and NI) and another means of profit share (say dividend share income) for the rest of his income as he is turning over a lot more than this.

2) Your OH only turns over enough to pay himself £10k a year and there is no other money in the company. He makes use of all the allowances for cars/meals/etc but only actually gets £10k income in total.

Depends on which of these scenarios you are talking about.....

Banks and Building societies have come a long way regarding contract workers and self employed in the last few years. What they need to know is how much does your OH actually earn - not what does he take in salary.

I am an IT consultant and I used to run my own limited company. Depending upon the year/contracts etc I would usually take a low salary and take the rest of the income in Dividend share income. This is common practice and is perfectly legal.(scenario 1)

I have a standard high street mortgage via the Woolwich. The income multiple was calculated from my hourly/daily rate on some formula that they use and we had no problems at all. OK. the mortgage was a very low LTV and a low income multiplier, I had a mortgage with Woolwich for years, and we both have excellent credit historys.
If you are talking about scenaio 2 then your OH is basically earning less than minimum wage and has less job security than a permie, so getting a mortgage would be less likely I would think. Car allowance and meal allowance etc is to cover the cost of running your car or eating away from home on a job - I don't think many lenders class that as income.

Hope this makes sense????

Can you be a bit more specific about OH's finances at all?

Thanks

Puss

cloud_dog

Clusters

Not sure how your OH income is structured but usually self cert mortgages allow for other sources of income, i.e. if your OH draws a large dividend periodically from his work/company this may be acceptable.

Edit: Just for info, this sort of situation is also likely to affect people who's companies use Salary Sacrifice payments, as your actual pay is less than your gross receipts.

cloud_dog