Sole trader mortgages and underwriters

stuzzy77

Hi All,
I was looking for some advice regarding mortgage underwriters. I'm a self employed sole trader.
My mortgage provider requires two years accounts and will average the two.
My problem is that the mortgage amount is based on the net income. My 2011/12 net income in my certified accounts was £20700 but on my inland revenue SA302 its £14200 as my accountant has used a van purchase to bring down my tax liability.
My year ending 2012/14 is £32,500 and OK.
I really need a higher figure on the 2011/12 accounts and wonder if the underwriter will consider-
1. Using the net operating profit of £20700 on the certified final accounts, instead of the SA302 total profit of £14,200.
2. Can the underwriter use the £14,200 and add the overpaid tax (tax rebate) on the SA302 of £3200 to bring the operating profit up to £17200.
I need an average of around £25,000 to afford the property we need.
We have a deposit of £165,000, 7 years no arrears with the mortgage company we are using and wish to borrow around £150,000.

Thrugelmir

Supply the certified accounts rather than the adjusted taxable profit.

stuzzy77

Thrugelmir wrote: »

Supply the certified accounts rather than the adjusted taxable profit.

They will still ask for the inland revenue's SA302 as proof.

Dave_Ham

I think you are attacking this the wrong way, in my opinion.

It is incredibly unlikely this lender will change criteria/policy for you, although there are likely to be lenders where you do fit their criteria.

I would have a look at other lenders, or have a chat with a broker.

Good luck

amnblog

A good broker with put you with a lender that will work on the most recent figures alone.

That way, the reduction in the previous years figures will not be an issue.