Proof of earnings

add2much

Hi,

I am looking at getting my first mortgage,
I am mostly paid by my company by dividends and my tax-free allowance through PAYE.
On applying for a mortgage what would I put as my earnings and how /what would be my proof of earnings ?
Thanks in advance

Mortgage_Mark_2

Depends on shareholding.

>25% = payslips
25%> = trading accounts/SA302's.

Unless that income is as a contractor in which case there's probably a far better way using the contract rate.

kingstreet

HMRC SA302s or accounts.

Add together director's remuneration and dividends for a particular year.

Take the average of the last two years as your income.

If the latest year is lower, use that alone without averaging.

add2much

Wow,, Fast replies,

On showing accounts, would any money that i have not withdrawn ( almost 50% of the mortgage ) be taken into account ?

Opinion

Mortgage_Mark wrote: »

Depends on shareholding.

>25% = payslips
25%> = trading accounts/SA302's.

Unless that income is as a contractor in which case there's probably a far better way using the contract rate.

Is this specific to any particular lender or generally how they all are?

kwmlondon

Seriously. Thought this thread was about proof of earrings. It's been a long week...

Mortgage_Mark_2

add2much wrote: »

Wow,, Fast replies,

On showing accounts, would any money that i have not withdrawn ( almost 50% of the mortgage ) be taken into account ?

Not unless your chosen lender uses share of net profit, rather than personal drawings.

Mortgage_Mark_2

Opinion wrote: »

Is this specific to any particular lender or generally how they all are?

Generally all lenders will use that sort of guide. There may be one or two that use 20% rather than 25% however.