Provable Income as a seafarer

Engie

I've been told now by two different mortgage advisers that because I don't pay uk tax ( I qualify for Seafarers Foreign Earning Deduction), my income isn't provable for mortgage calculations, despite having payslips and bank account statements.

Technically, the income on my payslips is listed as Taxable income but with an NT tax code. Then in self assessment I have to prove I am eligible for the deduction (by spending most of the year working outside UK and submitting records). If I end up not being eligible for the deduction I will have to pay the tax.

I do have an AIP with a broker who told me that I would be limited in who would be willing to lend to me, but so far the two direct lenders I've checked with aren't willing to consider my income at all.

I'll be checking with more lenders but to save time, does anyone know which lenders do or do not accept income which isn't liable for UK tax? Any other seafarers that had difficulty getting mortgages?

ACG

There will be lenders and what the broker has told you is correct in that you will be limited.

There will be lenders that you can go to directly but the chances of you finding them would probably be more down to luck than judgement, we do this job day in day out and have to learn these things over time.

I cant mention lenders names as it could be seen as leading which we would be castrated for - but the good news is that there will be most likely be lenders for it. So that will hopefully inspire you to carry on with your research or to use the broker, but either way it should be enough to not mean you have to give up.

I thought you had L&C on the case?

Your other post was looking at the best rates... forget this method. In your circumstances its a case of finding a lender(s) first and then rates second.

Engie

Thanks for the reply ACG. I didn't fully realise how difficult it was to get a mortgage as a seafarer. To be honest I'm struggling to understand why banks don't accept the proof of earnings I have, I'm paid in sterling into a uk bank account, my employer has offices in the uk, I have payslips and bank statements. It seems like these sources aren't trusted at all, and somehow the banks are assuming someone would somehow make it all up and put down tens of thousands of £££ on an unaffordable mortgage only to later have the house repossessed? It's very frustrating.

I'll keep on looking though, thanks for the advice.

GMS

Speak to a broker, it will save you hours and hours of work.

Annisele

I agree this is one for a broker.

If you're absolutely convinced you don't want to pay one (and in your circumstances I think that's mad), another option might be to ask your colleagues. If you can find somebody in the exact same situation as you, who has recently taken out a new mortgage, there's a good chance that the other guy's lender would also accept your earnings.

dgtazzman

As a seafarer that just got a mortgage myself, employ a broker. Mine took our case to Nationwide and got it passed straight to the underwriters for evaluation, he just used my SA302's from the last 3 years to back up my case. The process took a little longer than a standard case would, but it all went through pretty smoothly and we had our mortgage offer after about a month, at standard high street rate. Was stressed out like mad worrying till the offer came through...

Anyway, give HMRC a call and request your SA302's for the last 3 years, with a covering letter. If you do your own self assessment online, you can just print them off from the website, but then you won't get a covering letter and Nationwide was quite insistent a covering letter be included from HMRC.

Mortgage_Mark_2

Seafarer? London & Country?

All the best with that.

Engie

Yeah, turns out L&C can't help with mortgage for me. I had no idea it would be so much hassle to get one. Why aren't payslips and bank statements enough? I don't have any SA302's yet because this is the first year I'll file for self assessment! I became a fully qualified officer in december last year.

L&C passed my case onto Simon Conn.

Mortgage_Mark_2

Have a look online for a contractor specialist broker - these cases are fairly common for them. If one of those can't help, nobody will be able to.

ACG

L&C wont be interested. With all respect to them, they are non fee charging.

Why would they spend hours on the phone ringing around when they can just move on to the next easy case?

You get what you pay for in this world and if you dont pay, yourlikely to get someone who goes after the easier cases.