Mortgage for Unprovable Income

drum-uk

Ok I'm looking to get onto the property ladder over the next 12 months, however despite been nearly 40, I have never had a "proper job" I make what I consider a reasonable income, and am well on the way to having a decent deposit. Saving regularly, and keeping up with bills, rent etc.

However my income isn't "regular", I don't have pay slips etc.

So on the assumption that I know I'm not likely to buy a house in the short term, but would like to start preparing\making my case more appealing. Firstly how can I improve my case over the next 12 months or so, and secondly are there any alternatives to the standard banks\building societies which might entertain me as a house buyer. Such as crowd-funding??

amnblog

drum-uk wrote: »

Ok I'm looking to get onto the property ladder over the next 12 months, however despite been nearly 40, I have never had a "proper job" I make what I consider a reasonable income, and am well on the way to having a decent deposit. Saving regularly, and keeping up with bills, rent etc.

However my income isn't "regular", I don't have pay slips etc.

So on the assumption that I know I'm not likely to buy a house in the short term, but would like to start preparing\making my case more appealing. Firstly how can I improve my case over the next 12 months or so, and secondly are there any alternatives to the standard banks\building societies which might entertain me as a house buyer. Such as crowd-funding??

No crowd funding - it's a regulated market.


Only, if you are submitting tax returns and paying tax you have options.


If not - that is a whole different question.

Thrugelmir

drum-uk wrote: »

However my income isn't "regular", I don't have pay slips etc.

All income is provable in some form. If it isn't then you have a problem.

drum-uk

Submitting Tax Returns, was my first step towards this, I submitted a self-assesment, this year, I have done it intermittently at best though in previous years, not in any deliberate attempt to avoid my responsilites, but more bad organization.

drum-uk

Thrugelmir wrote: »

All income is provable in some form. If it isn't then you have a problem.

The obvious thing is Bank and Paypal receipts, but how many mortgage companies would accept these for a mortgage?

SeduLOUs

drum-uk wrote: »

Submitting Tax Returns, was my first step towards this, I submitted a self-assesment, this year, I have done it intermittently at best though in previous years, not in any deliberate attempt to avoid my responsilites, but more bad organization.

Wowsers. If you've earned enough to save for a house deposit as well as paying all of your rent and bills but haven't submitted tax returns then a mortgage is the least of your worries!

Get on to HMRC. File your tax returns. Pay the tax due. Use the tax returns as a basis of showing your income if you have enough money left for the deposit.

Thrugelmir

drum-uk wrote: »

The obvious thing is Bank and Paypal receipts, but how many mortgage companies would accept these for a mortgage?

Then you should have financial accounts to go with the income. Book keeping is a basic requirement.

drum-uk

Part of my reason for intermittent tax returns is, my book keeping skills are not the best.

It has been suggested that going Limited, paying myself with PAYE, and "starting afresh" maybe the way to go, does anybody think this might be a good idea?

leveller2911

drum-uk wrote: »

Part of my reason for intermittent tax returns is, my book keeping skills are not the best.

It has been suggested that going Limited, paying myself with PAYE, and "starting afresh" maybe the way to go, does anybody think this might be a good idea?

There is more bookwork to being Ltd than there is being a sole trader. Go and pay a qualified accountant to sort out the mess.

drum-uk

leveller2911 wrote: »

There is more bookwork to being Ltd than there is being a sole trader. Go and pay a qualified accountant to sort out the mess.

But would it be easier to get a mortgage as a sole trader, or director??

kingstreet

Exactly the same.

Both treated as self-employed and typically both expected to evidence two years earnings via HMRC SA302s.