Spread betting for a living.

ffsear

Need some help with regards to my chances of getting a mortgage. The problem is for the last 4 years I have been making a living from spread betting on financial markets (Forex, shares commodities) from home. That had always been my dream, but since I started I have met a girl, settled down and now we wan't to buy a house together.

Is this likely to be a major problem for me when trying to get a mortgage? I have a month by month record of what I have made exactly each month since I started, but as I'm technically gambling for a living none of this is very official, its literally just a statement breakdown provided by my broker. I'm not registered as self employed or anything like that either.

Any ideas?

kingstreet

I'd be surprised if a lender viewed your income as acceptable.

As it isn't taxable, there is going to be no verifiable evidence of your income on which they can base affordability.

Thrugelmir

There's no guarantee of future earnings. Mortgages are repaid over 25 year terms. So betting offers a lender no assurances. However successful the past.

ffsear

kingstreet wrote: »

I'd be surprised if a lender viewed your income as acceptable.

As it isn't taxable, there is going to be no verifiable evidence of your income on which they can base affordability.

What about payments by my broker into my back account?

ffsear

Sorry, also forgot to mention it will be a joint mortgage with my girlfriend, who works full time, if that makes a difference?

kingstreet

I have no idea. Your partner's income will be taken into account if she can evidence it.

As I said, lenders base affordability on verifiable evidence of income, such as accounts, SA302s, payslips and P60s.

Perhaps your own clearing bank may be an option?

You could have accounts prepared by an Accountant. There would be no allowable expenses, or taxation, but he could certify your earnings, based on what you present as your evidence?

No idea if that would work, clutching at straws a little here...

ACG

I wouldnt hold my breath with this. If you have no accounts - there is no record of what you earn, also betting isnt seen as a great way to make income in the eyes of the lender. That being said you sound like you have made it work for a long time.

I do know that there are some lenders who are happy to see 6 months worth of bank statements as proof income in the absence of accounts. The rate wont be fantastic but it will get you on the property ladder - im not sure if they would accept gambling/spread betting though.

I think with this you will need to speak to a broker as you wont find a high street lender who will even contemplate it.

ffsear

Yes, i'm worried about the stigma that surrounds "spread betting" even though its the same as trading DMA.

I guess I need to get technically employed via a hedge fund or something where I can still trade my own money. Or set up my own company and trade through that.

ACG

I wouldnt give up just yet if you really want to buy. I would speak to a broker and see if they can help - it depends how much you want to buy though, if your not that fussed then it may not matter too much.