Self Employed Mortgage

ChopinonaBudget

I'm self employed and employed and am currently trying to get a mortgage. The problem is I think I have just found a load of errors in my accountant's P+L workings for 2013/2014 which would have affected the mortgage offer that was made to me (which was already lousy for various reasons I won't bore you with). Luckily, the tax return hasn't gone through yet. I need to bring all of this up with my accountant and seriously consider whether what to do with that situation, but first I need to go through the figures with a fine toothed comb and see what errors there actually are.

My question is: I have just been credit checked. (it's in referral, so I'm waiting to hear back from the broker). Theoretically, if my income was wrong on the credit check, how will this affect further mortgage applications? As far as I can work out, it may be off by as much as £2k+ on a £14K salary. Would I be better off forgetting the whole thing, letting it settle, and trying again in a year?

P.S. please ignore the signature; I haven't had a chance to change it yet and it's been a while since I was on here!

HappyMJ

£14k salary? Are you sure? How much are you looking to borrow? Any other income?

ChopinonaBudget

Well, it's a bit more complicated than that - I bring in £12.5K from the sole trader business, £9K off one PAYE, and potentially another £6K off another. But lenders won't count 2nd job as it's too new, and accountant worked out £6K expenses - which is my problem. I'm looking at them and I can already see he's made an error with the car allowance and it's over by £1K, which impacts my earnings, so makes me look worse than I do. Actually, it's more like £15k isn't it?
When I hired him he did a great job of sorting out my expenses and saved me some £££s in tax, but this year it looks like he's just making error upon error.

Do you know where I stand with the credit checks being done on a wrongly calculated income?

ChopinonaBudget

Sorry, that's £12.5K gross, before expenses. Even with my working out of basic expenses, net is roughly £10K

Funny_old_game

Just rely on what you have declared to HMRC. Anyone self employed should know what their tax liability is, if not then your not in control of your business.

Thrugelmir

ChopinonaBudget wrote: »

I'm looking at them and I can already see he's made an error with the car allowance and it's over by £1K, which impacts my earnings, so makes me look worse than I do.

Try the tax board. Your accountant may be doing what's best for you financially.

ChopinonaBudget

Thanks for replying Thrugel

I might rephrase this question in a new thread though, as nobody seems to be able to answer my question (unless you have any ideas?)

Q: Will the credit check that has gone through with a wrongly calculated income impact further mortgage applications? And if so, how long would I need to wait for this 'dust' to settle?

HappyMJ

ChopinonaBudget wrote: »

Thanks for replying Thrugel

I might rephrase this question in a new thread though, as nobody seems to be able to answer my question (unless you have any ideas?)

Q: Will the credit check that has gone through with a wrongly calculated income impact further mortgage applications? And if so, how long would I need to wait for this 'dust' to settle?

What type of credit check was done? It may then again it may not. You may be able to apply immediately as it may have no effect. I think what we're trying to say is that other factors may have affected the decision.

Funny_old_game

It doesn't generally impact, however if you apply to a bank with multiple brands ie RBS/Natwest, their systems might spot another app with different detail.

If it's a genuine mistake which this sounds like, as long as your upfront with the detail it'll generally be ok.

ChopinonaBudget

Ta MJ The offer I have had is 57K which seems low but fair enough given my stupid low 'acceptable' income (i.e. not including the third job and with the overly expensed SE). What I am unsure of is whether or not to risk a new application once I have sorted out the accountant issues, or whether a new credit check with a new income would raise red flags and shut down any chance of a lender saying yes altogether.

ChopinonaBudget

Ah Funny, that could explain a lot! The mortgage offer is with Natwest whom I have credit card with and when I applied for the card, I gave my actual earnings, not this ridiculous figure I have been landed with as 'acceptable income' (i.e. not the third job and not including CB or tax credits).

I'll see what happens now and then reapply once I have sorted out my 2013-14 return and have official figures. Nightmare!