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

Mortgage_Mark_2

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?

He's a contractor, working through a limited company. It's the companies income, of which he's a director and pays himself salary and dividends. The company pays tax on it, he pays tax on his income from it.

It's all above board.

Mortgage_Mark_2

haras_nosirrah wrote: »

Talk about wanting your cake and eating it. You don't want to pay tax (so you can save) but you also want to use your undeclared earnings to get a mortgage. Paying your wife 100k a year won't work. Lenders do a plausibility check to pick out exactly this kind of practice and any broker who did this for you would be risking their job

Anyone else find it wrong that the op is paying less tax than a minimum wage cleaner?

It really would pay to know what you're talking about before you spout this kind of nonsense...

He's not self employed and it isn't undeclared.

haras_nosirrah

haras_nosirrah wrote: »

Paying your wife 100k a year won't work. Lenders do a plausibility check to pick out exactly this kind of practice and any broker who did this for you would be risking their job

So is the op allowed to suddenly increase his wife's income to 100k when she isn't actually doing much work for the business?

One of my colleagues was fired for not realising that it was unlikely a waitress would be on 40k a year. Santander queried it under plausibility and they turned out to be fake payslips and he hadn't noticed. The reason he was fired is he didn't do due diligence and didn't ask for bank statements or p60 to confirm income.

nospaceforbaby

stu007 wrote: »

And what happens if (when) interest rates rise?

its a fixed rate with NRAM, 120% mortgage on the flat no equity - its been fixed at the same rate for over 7 years since I bought the place, 950 pcm payment rental value 1200 so im told. thanks

Mortgage_Mark_2

haras_nosirrah wrote: »

So is the op allowed to suddenly increase his wife's income to 100k when she isn't actually doing much work for the business?

One of my colleagues was fired for not realising that it was unlikely a waitress would be on 40k a year. Santander queried it under plausibility and they turned out to be fake payslips and he hadn't noticed. The reason he was fired is he didn't do due diligence and didn't ask for bank statements or p60 to confirm income.

It's not the size of the salary that would be the issue there, as I explained to the OP previously, it's the fact that his wife would be employed by him, which they wouldn't allow.

haras_nosirrah

Lenders do allow incomes from family employed by other family members but there would be stringent plausibility checks and a reference from the accountant. Did one not long ago with son employed as a bar manager in a club owned by his dad. Lender requested 3 months payslips, bank statements, p60 and reference from company accountant

nospaceforbaby

haras_nosirrah wrote: »

Talk about wanting your cake and eating it. You don't want to pay tax (so you can save) but you also want to use your undeclared earnings to get a mortgage. Paying your wife 100k a year won't work. Lenders do a plausibility check to pick out exactly this kind of practice and any broker who did this for you would be risking their job

Anyone else find it wrong that the op is paying less tax than a minimum wage cleaner?

everyone has the choice to pay the full tax rate or not, you can start your own business for about £200 like I did - then you can put yourself on the same perfectly legal tax scheme.

The reason these tax schemes are legal is because the people who make the rules are also fiddling tax, expenses and anything else they can get a way with - its human nature to seek to improve your own life and this is why so many senior politicians offshore their tax affairs - all of David Cameron`s inheritance from his dad came from an offshore account, Starbuck, Google, Amazon, Jimmy Carr, Gary Barlow they are all doing it - I worked very hard for many years and achieved absolutely nothing, kept a roof over my head that was it - now I am starting a family so I have a responsibility to provide a home etc which for me would not previously have been possible under the full tax rate.

Mortgage_Mark_2

haras_nosirrah wrote: »

Lenders do allow incomes from family employed by other family members but there would be stringent plausibility checks and a reference from the accountant. Did one not long ago with son employed as a bar manager in a club owned by his dad. Lender requested 3 months payslips, bank statements, p60 and reference from company accountant

...not when the 'company' was a Ltd company for a contractor, I suspect.

And in actual fact, if the wife was a shareholder and was paid £100k salary and dividends throughout the year, plausibility doesn't come into it.

nospaceforbaby

Bantex wrote: »

have you had a valuation done, where I am (SE London) prices have nearly double since 2006

yes this is a recent valuation, I paid too much for it and it has risen by much

haras_nosirrah

nospaceforbaby wrote: »

she works for the company I set up so I was thinking I could increase her payslips to reflect a salary of say 100-150k P.A and we could apply for the mortgage with her payslips - she is a PAYE (non director) employee of my company so she is just the same as any other employee in that respect and we can put her salary up as we choose - the mortgage provider is only requesting 3 months payslips and one month`s bank statements

Op's wife is a paye member of staff not a director so she is not a shareholder and no dividends