Self employed/ lots of overtime

Davidoff

Hi

Looking for some advice on how the lenders view overtime and self employment.

I have a basic salary of 27k, however earn 45k. I always net approx the same figure each month. The additional income is overtime. Lots of time on the road and door to door pay.

My partner is a sole trader with a net income of £1000 per month, plus £2500 PA tax credits.

We are looking at properties in the region of £220,000. Will be approaching an independent broker in 2 years time with 40-50k in the bank.

Will be totally debt free with some adverse credit history that will have fallen off file.

Am I being realistic?

Davidoff

It's also worth mentioning that we have close on no outgoings as my partners business absorbs things like car insurance, utility bills etc

RickyC_IFSWP

Can you elaborate on what you mean by overtime?

Anyway, for self-employed, lenders will typically look at your average "net profits" (not the same as turnover) over the past 2 or 3 years. Your accounts may need to be certified by an accountant that the lender recognises too. An easy rule of thumb is simply to add up both your net profit figures and multiply by 4 to get a rough idea on how much you can borrow (some lenders will lend more and some less).

Davidoff

I am paid a salary for 37.5hours per week. Anything over that is paid at £21 or £28 per hour.

Edi81

Do you fill in a self assessment form?

It doesn't sound as though you are self employed but are employed and end up with a lot of overtime payments.

You say you have next to no outgoings. Will you be getting a joint mortgage with your partner? Are they self employed?

Davidoff

My partner is self employed. She completes her tax return.

I am PAYE full on employed. I earn a lot of overtime. I'm trying to work out if a lender will accept my actual earnings as my income if I can prove it is consistent via consecutive P60s

Davidoff

Also, if my income is enough, do we even need to venture down the path of including my partner and her self employed income?

Gaz83

Davidoff wrote: »

Hi

Looking for some advice on how the lenders view overtime and self employment.

I have a basic salary of 27k, however earn 45k. I always net approx the same figure each month. The additional income is overtime. Lots of time on the road and door to door pay.

My partner is a sole trader with a net income of £1000 per month, plus £2500 PA tax credits.

We are looking at properties in the region of £220,000. Will be approaching an independent broker in 2 years time with 40-50k in the bank.

Will be totally debt free with some adverse credit history that will have fallen off file.

Am I being realistic?

Am I the only one wondering how you get £2,500 tax credits per year for a household income of over £50,000?

Davidoff

Gaz,

That is not the question at hand. Whom mentioned a household? First time buyers in our late twentys.

Gaz83

Fair enough, lad - did not realise you were not living together at present.

You don't need to include your partner's details if you choose not to - our mortgage is based on my details only as my wife's credit history is poor, but mine's is excellent. Of course this can impact on affordability, though.

RickyC_IFSWP

Davidoff wrote: »

Also, if my income is enough, do we even need to venture down the path of including my partner and her self employed income?

For some reason I misread your post as saying that you were both self-employed. My bad.

The lenders would usually want your partner to be on the mortgage too because she will be living at the property.

And yes, you do need to show the lenders that your overtime pay is consistent.