Need 50K desperately

leveller2911

baggie29 wrote: »

Thanks for all your replies. Nobody seems to have picked up on the fact that i am self-employed and my income is "flexible". This gives us a massive tax incentive to keep myself as the primary breadwinner. For example this week i have earned in excess of £1000. This is an exceptional week however. My standard week is between 400 and 500 per week.We also receive tax credits of around 180 per week.

Can you clarify where this "massive tax incentive " is with regards to being self employed?.

If I remember correctly being self employed and receiving tax credits can be a double edged sword. For tax credits your income is based on your previous year , so the following year they give you £180 a week which is fine but if in that following year your income rises (which it may well do having "flexible earnings") above the TC threshold you will have a huge over payment to pay back.

Benefits should NEVER be taken into account when assessing affordability for mortgages...

Just to add if your earnings are felxible they can fall as well as rise..

baggie29

MaxtheCat - I take offence at being dubbed as "one of lifes losers." How dare you judge somebody by the amount of money they make. I am making a decent income and working hard every day to provide for my family. Yes I get tax credits based on last years income as this was my business start up year and not a great deal of profit was made in this year.

This year has been a good year and and profits are looking good (not in comparison to you of course Mr Big Shot).

I don't sit around on my backside all day watching Jeremy Kyle and smoking weed - they are "lifes losers" in my opinion.

Pompous arrogant snob!

michelle2008

Baggie best to ignore the benefit trolls. I think you have got some good advice from others here - don't over stretch, and don't take on big debts when your income is comparatively low and you are heavily reliant on benefits.

Wait a year - see how the business takes off and what your income levels are like when your wife is working again.

You have got caught up with leaping quickly and I don't think that is the right mind frame for taking big financial decisions

baggie29

Thanks Michelle. That guy just really wound me up lol. Yes you are right and waiting is the sensible option. We are just worried that if my wife can't get a permanent job starting september 2015 then our window of opportunity to obtain a mortgage is going to close quite quickly due to her age and the prospect of rising interest rates.

Its quite frustrating as the money I have been making consistently for the last 12 months would cover the bigger mortgage payments no problem - although again this is also factoring in the tax credits which we are likely to lose come April 2015.

Thankyou to everyone who has replied to my thread. There has been some helpful advice and some not so helpful. You have helped us make the decision to stick it out a little while longer in our tiny house and put every effort into tarting up our present pad as well as finding my wife a new job and make our move more affordable. :T

lovinituk

baggie29 wrote: »

Yes I get tax credits based on last years income as this was my business start up year and not a great deal of profit was made in this year.

I hope you've been saving your tax credits or you're in for a nasty shock when you're asked to pay back your overpayments next year.

Jhoney_2

baggie29 wrote: »

Thanks Michelle. That guy just really wound me up lol. Yes you are right and waiting is the sensible option. We are just worried that if my wife can't get a permanent job starting september 2015 then our window of opportunity to obtain a mortgage is going to close quite quickly due to her age and the prospect of rising interest rates.

Its quite frustrating as the money I have been making consistently for the last 12 months would cover the bigger mortgage payments no problem - although again this is also factoring in the tax credits which we are likely to lose come April 2015.

Thankyou to everyone who has replied to my thread. There has been some helpful advice and some not so helpful. You have helped us make the decision to stick it out a little while longer in our tiny house and put every effort into tarting up our present pad as well as finding my wife a new job and make our move more affordable. :T

Now those are a whole host of great ideas!

All the very best - i'm sure you'll have enough income between you to weather the small incremental rises expected (if they even begin by then) and you'll be so glad that you came to the conclusions you have.

Thrugelmir

baggie29 wrote: »

Thankyou to everyone who has replied to my thread. There has been some helpful advice and some not so helpful. You have helped us make the decision to stick it out a little while longer in our tiny house and put every effort into tarting up our present pad as well as finding my wife a new job and make our move more affordable. :T

Overpay your current mortgage. Building equity will help you make the step up in the longer term. Interest rates could stay lower for a while longer yet.

robotrobo

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Pompous arrogant snob![/QUOTE]




Jeremy Kyle and smoking weed


eh baggie!,
hang on a minute , our jez was voted best daytime program on tv, was i the only one to vote for him?, well i was smokeing !!!!!.:rotfl: good luck

nobblyned

nubbins wrote: »

My brother in law, he once offered to buy us a house we were interested in for 400k cash so we didnt have to sell ours straight away. He has a plumbing business and lives in a 2.5 million house:mad:

Why the angry smiley that your brother in law lives in a 2.5mln pound house? Sounds like he is doing well for himself, and offering to help you out. Sour grapes much??

HHarry

lovinituk wrote: »

I hope you've been saving your tax credits or you're in for a nasty shock when you're asked to pay back your overpayments next year.

This is wise advice. A combination of an increase in my SE earnings, and a son dropping out of college led to a request to repay £1000 of tax credits within 30 days.
Even setting up a payment plan is painful - you are no longer getting the tax credits AND you have to find the repayments,