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80k deposit but cant get any type of Mortgage please help

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Comments

  • all true, have a look online for "BESTPAY" - there are loads of companies offering up to 90% return.

    I find it totally bizzare that people think I am making this all up - to what benefit? some really cynical and odd perspectives out there.
  • JustinR1979
    JustinR1979 Posts: 1,828 Forumite
    Without being rude, it's all a contradiction - you appear to be smart and stupid, good with money and bad with money.
  • and it seems like no one has any good ideas anymore so i think its best I unsubscribe now, my options have boiled down to either option one I carry on doing what I am doing and buy a cheap place at 150k cash next year, or - option two, hopefully NRAM can look past my poor credit from years ago, take my deposit and allow me to port over my mortgage debt to another property. I would hope that after 8 years of me being on interest only and not paying off any capital at all they will welcome a big chunk of money from me and since it is the same mortgage and not a new mortgage application I am hoping credit scores wont be a dealbreaker for them giving that I am willing to move from a 250k flat into a 150k house and pay them 80k cash
  • Without being rude, it's all a contradiction - you appear to be smart and stupid, good with money and bad with money.

    you are being rude, name calling and disrespectful comments arent constructive and just make you and your opinion look totally worthless.
  • JustinR1979
    JustinR1979 Posts: 1,828 Forumite
    What would you call your situation?
  • dranzer01
    dranzer01 Posts: 427 Forumite
    Ninth Anniversary 100 Posts Name Dropper Combo Breaker
    sulphate wrote: »
    Add that to the bit where he said he deliberately declared low earnings/profit so he could minimise his tax bill and save 80k? !!!!!!? Are the self emoyed not legally required to declare all their income?



    is bill gates not self employed and all the other top guys in major corporations who do tax avoidance...?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    hopefully NRAM can look past my poor credit from years ago, take my deposit and allow me to port over my mortgage debt to another property.

    NRAM no longer writes new business. Paying down your mortgage will save you your money and build your equity.
  • I thought about it more and decided to be generous and suppose that maybe the OP is telling the truth. I decided that perhaps he exaggerated a bit but he was telling a true story, therefore to test the viability of his story I had to make some assumptions, they are:

    1. The tax years in which he "unable to save anything" (an exaggeration) he was able to save £10,000
    2. His household spends £4,000 per month (£48,000 per year) (seems reasonable given his £950 mortgage)

    Using the information from the opening post in conjunction with assumption #1 I suppose that at the start of the last tax year he had £20,000 (2 x £10,000) and then during the tax year he saved another £10,000 (without any tax magic) leaving him with £50,000 to conjure up with efficient tax management.

    I'll use "worst case" to mean he pays the maximum amount of tax (as a PAYE employee of his own company) and the "best case" to mean he pays the least amount of tax (dividends!) -- I know that taking unneeded money out of the company is very silly and tax inefficient but this is just to demonstrate the point!

    If he earns £100,000 the worst case take home is £58,471.26, the best case take home is £70,630.81. This means that by using the most efficient tax structuring with £100,000 he can stand to save an extra £12,000 per year, but that's still far short of the £50,000 target we have to make his figures work!

    If he earns £200,000 the worst case take home is £95,672.15 and the best case take home is £125,813.36. That's a £30,000 difference, which is getting closer, but still far short of the £50,000 target! Also at this point it's worth noting even if his take home was the worst it could be at £95,000 per year he would have already be very able to build a healthy deposit.

    If he earns £300,000 the worst case take home is £149,099.21 and the best case take home is £181,368.92, that's a difference of £32,000 per year but still far below the £50,000 a year. Also at this point note the diminishing returns, his tax savings are not noticeably greater!

    If he earns £500,000 the worst case take home is £244,046.66 and the best case is £287,271.69, that's a difference of £43,000! We're getting there, so close to the £50,000 required... but at this point his take home is so high this entire thing sounds like fiction. Let's continue anyway!

    If he earns £650,000 the worst case take home is £313,906.06 and the best case is £366,698.78, that's a difference of £52,000! We've made it, the £50,000 figure! Yet, for this to work... his take home pay would be £30,000 per month, if he was taking home that much every month he'd have no problem saving for a deposit!

    I think those examples clearly demonstrate that there is no legal tax structuring that can allow someone to take home an extra £50,000 per year unless they earn over half a million per year.

    Let's add that with the following other facts:

    1. He is against renting but put a deposit on a £240k flat 8 years ago and has no equity (therefore lost a lot of money!)
    2. Has a flat in London that has not seen any value appreciation in 8 years

    This story is either fiction or... well, I don't want to say it's "obviously" a troll because there are situations in which someone can be a successful business person and have no idea about tax, or saving, or renting, or personal finance in general... but I struggle to believe it.

    With respect, you're not looking at the scheme in the right way at all.

    Let's look at it this way; for ease of calculation, let's say his Ltd Co has a £100k turnover. Probably around £80k of that goes out of the company as administrative expenses/cost of sales - completely tax deductable - which are actually him paying himself to consult to the company. The remaining £20k is then either left in the company and as such is only taxed on the company, or taken as salary/dividends and taxed accordingly.

    It's a lot, lot more complex than just salary and dividends.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • amnblog
    amnblog Posts: 12,733 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    It's a lot, lot more complex than just salary and dividends.

    You are right MM
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • What would you call your situation?

    judging by your trolling probably better than yours
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