Self-employed - proving my income

Rimo2021

Parallel_Universe wrote: »

I wonder if anyone could advise me please? I'm self-employed and am increasing my current mortgage along with my Husband (who is employed), due to selling our house to purchase a larger and more expensive one.

The mortgage lender has asked me for proof of my earnings, however as I am a sole trader and have a simple business (personal training) with very few transactions I do my accounts and tax return myself. My first return showed a loss due to start up costs, equipment etc (although I did of course make money!) and my second tax return shows a small profit which was covered by my personal allowance. My actual takings were a lot more though but due to expenses the overall profit figure was low. I am worried I will not be able to back up the amount I actually earn with sufficeint evidence.

You can get the tax office to send you a 'tax calculation' which proves your income for mortgage purposes.

However your turnover is irrelevant. The relevant figure is your taxable income.

financial_solution

parallel universe,

I was "concerned" that you may have gone deeply into the Coventry application and at nearing completion realised that you could not satisfy the requirements. At least you are not with the extra pressures this brings.

It seems my last post is being questioned as an approach. Although initially irritated by this inference I have re-read the post and understand that perhaps I should have phrased the post better.

I am trying to suggest that from the limited info available you "should" be able to get the self-cert mortgage you require. As you have not gone too far with the Coventry you have the opportunity to establish whether or not you are going to be able to satisfy their requirements when necessary. If not, you will have to search for an alternative lender. As I say, I do not have all the info available but I think you will be ok.

There is a very delicate line between saying you know a suitable product is available and seeming to be trying to "get the business" as there is between stating that more info is required for a considered opinion and an approach. The last thing I intended to do was make you feel uncomfortable. Perhaps I needed to be more circumspect with my forum etiquette.



Good luck,

Regards,

Mark.

JoeK_3

financial_solution wrote: »

parallel universe,

I was "concerned" that you may have gone deeply into the Coventry application and at nearing completion realised that you could not satisfy the requirements. At least you are not with the extra pressures this brings.

It seems my last post is being questioned as an approach. Although initially irritated by this inference I have re-read the post and understand that perhaps I should have phrased the post better.

I am trying to suggest that from the limited info available you "should" be able to get the self-cert mortgage you require. As you have not gone too far with the Coventry you have the opportunity to establish whether or not you are going to be able to satisfy their requirements when necessary. If not, you will have to search for an alternative lender. As I say, I do not have all the info available but I think you will be ok.

There is a very delicate line between saying you know a suitable product is available and seeming to be trying to "get the business" as there is between stating that more info is required for a considered opinion and an approach. The last thing I intended to do was make you feel uncomfortable. Perhaps I needed to be more circumspect with my forum etiquette.



Good luck,

Regards,

Mark.

What a load of twaddle!!!

You were implying that you could help the OP to tell lies about their income.

Come clean.

JoeK

snaffs

Rimo2021 wrote: »

However your turnover is irrelevant. The relevant figure is your taxable income.

True. Whilst it will reduce your tax bill by offsetting a lot of business expenses against your turnover income , unfortunately it is your actual taxable income as declared to the tax office that a lender will use when assessing your income for underwriting purposes.

JoeK_3

Parallel_Universe wrote: »

Valuation hasn't taken place yet so I have a little time to mull it over...

The problem is that we have still not seen your incomes.

You should be aware that some lenders work on an income multiple whilst others work on affordability but declared income is something that they will all ask for.

The self employed person and their income is a special person when being assessed for a mortgage and they will often need the services of either a very capable mortgage adviser/financial adviser or an accountant to help with the projections of income.

The truth of the matter is that you need the help of a professional here, before it's too late.

JoeK

sarkin1

hey dont worry about income just make it up. Find a broker and the job is as good as done.

sarkin1

Or as Joeky says a special friend

financial_solution

Dear Parallel Universe,

Just I quick note to check where I implied you should lie about your income, as JoeK seems to contradict himself in admitting, we do not know your income.

The basic consensus seems to be that your application is do-able.

Regards,

Mark.

JoeK_3

sarkin1 wrote: »

Or as Joeky says a special friend

What are you talking about?

If your care to read the thread, it's apparent that the OP needs professional help with their self employed income that needs unravelling.

Who said a friend?
Who said a special friend?

Please don't read into peoples posts and then start to make insinuations that are not there.

Having a look at the current year may unravell improved profits that were not apparent in the previous years accounts.

JoeK

JoeK_3

financial_solution wrote: »

Dear Parallel Universe,

Just I quick note to check where I implied you should lie about your income, as JoeK seems to contradict himself in admitting, we do not know your income.

The basic consensus seems to be that your application is do-able.

Regards,

Mark.

Sorry Mark, I rarely knock my colleagues in posts but please tell me how this is "do-able" without knowing the OP's total income?

JoeK