Self Employed Mortgage / Taking permanent job

Yellowanimations

Hello, I'm new here, am looking for helps also keen to contribute back and let people know how I get on with my problem.

I spoke to a mortgage advisor last week to get an idea of what me and my girlfriend can borrow. We are looking for a mortgage that is very cheap and easily affordable for us, around £130,000, we have £13000 deposit and money for fees saved.

The difficult part is that I'm self employed, sole trader, I have completed one tax return and will be filing another this coming month. Though I've been working SE for nearly three years, Here is a rough idea of the situation.

2011 - 2012: £8500 self employed + £5000 from permanent job.
Files Jan 2013
2012 - 2013: £20000 self employed
Files in Jan 2014
2013 - present £30000, min projected £35000
Files Jan 2015

My girlfriend earns £16000 perm job.

I was told it's unlikely I'd be able to borrow until 2015 as my first year isn't a complete year due to the part perm work so I'll only be at 1.5 years of accounts come Jan 2014.

I'm not sure if I've done something wrong managing my accounts, Am I leaving it too late to file my return? Can I file 2013 - 2014 in April 2014 so I don't have to wait as long to prove this income?

Also another thing is I've been offered a permanent job £35000 a year, the mortgage advisor has suggested I could take this job, then with the proof of contract get a mortgage and just leave the job and setup self employed again. That seemed a bit ridiculous but might be my only option, seems like a huge loophole if it really is correct?

Thanks for the help in advance, would be good to hear from similar cases from other self employed people when looking to obtain a mortgage.

leveller2911

Yellowanimations wrote: »

I'm not sure if I've done something wrong managing my accounts, Am I leaving it too late to file my return?

Can I file 2013 - 2014 in April 2014 so I don't have to wait as long to prove
this income?

If your trading year finishes in April 5th then you can file your accounts on the 6th April if you have them completed. I can never understand why people leave it till 31st Jan of the following year until they submit their tax return.

Wh05apk

There are some lenders who will accept one years self employed accounts/SA302's, however on your first years figures they will not be sufficient, once you have your second years figures you should be ok.


Potentially you could accept the job, then once the mortgage completes leave, however there is no real need as your accounts should be sufficient, also taking a job, purely with the intention of getting a mortgage, then leaving could be seen as mortgage fraud.

claret_mike

How can the OP's mortgage adviser claim to be giving good advice when promoting these kind of tactics where they are potentially putting their client in a position where they can be accused of mortgage fraud?