Ignoring self employed income

showmethemoney123

Can anyone advise me on this please.
Me and my wife are FTB.
I am employed with a basic of £93k plus a bit of extra amounting to £5k per year.
My wife is self-employed, with the last 3 share of net profits - 7800, 8500, 10200.
I am also self-employed with my wife, but I take less than 5% of profits, so I haven't declared this to lenders.
We have 2 AIPs (both soft searches):
Barclays is £388k
Halifax is £430k
We have a 5% deposit.
We've just viewed our first home, and it is perfect for us! We are going to put an offer in.
It's on the market for £330,000.
I've been reading quite a few threads on this site and others. Am I right in thinking that self employed mortgages are more difficult to get through, and generally go through the underwriters?
If this is the case, would it be easier for us to just declare my employed income alone on a mortgage application, but we do a joint application and don't declare any income for my wife? We also don't use an accountant, so if they start asking for certified accounts then we will get stuck. According to the calculators it seems that my basic income alone is plenty for a mortgage of £313k.
But will any eyebrows be raised because we are using a different set of figures and circumstances from our AIP?
Thanks

kingstreet

Don't declare income you don't need for affordability purposes.

BTW, there are no employed or self-employed mortgages. Same mortgage from same lender, just slightly different evidence of income requirements.

Normally three months payslips against two years' tax calculations and two years tax year overviews, or similar...

showmethemoney123

Thanks for replying. I am sure that my income is enough. To be sure, should I resubmit for a new AIP, before going through a full application? Or would this risk somehow invalidating a previous AIP? Sorry if it sounds like a stupid question... I'm new to this

HappyMJ

showmethemoney123 wrote: »

Thanks for replying. I am sure that my income is enough. To be sure, should I resubmit for a new AIP, before going through a full application? Or would this risk somehow invalidating a previous AIP? Sorry if it sounds like a stupid question... I'm new to this

The AIP would have been calculated based on what you proved at the time. Did you provide payslips and accounts to get the first AIP?

If you apply for another one the first one won't be valid any more as it's based on different circumstances.

I wouldn't worry about it. If they need more income they'll tell you can you can provide your accounts to prove a little more income. You don't "need" certified accounts.

I'd just go and make an offer on the property based on your existing AIP and make it subject to finance/valuation and any required surveys being satisfactory.

showmethemoney123

Great thanks, yes we will put an offer in based on the existing AIP.
Yes, we used all income for AIP - my basic and extras, plus my wife's self-employment.
The only thing we left out was my very small share in the partnership profits.
When we get to the full mortgage application we will tell the advisor that were thinking of just going ahead based in my income and see what they say, but we will make sure to have all docs in hand at the appointment.

amnblog

You are using a broker?

Perhaps the broker has not run the dip based on anything other than your employed income anyway.

showmethemoney123

No we are doing it direct. AIP done online.
Barclays have a 3.79% fixed for 2 years at 95% LTV, which is the one we are hoping to get.
Halifax is 4.09% for 2 years. They have the £2000 cashback, but it ends next week
The plan is to overpay in the next 2 years to hopefully get it down to 90% and then get the better rates when re-mortgaging.
Do you think a broker would be beneficial here? Are there many better deals around, given the size and LTV we are working with?

amnblog

Yes, a broker would be beneficial as you are about to get yourself a headache you don't need.

Leave it to someone who knows what they are doing.

Don't waste your time at £50 an hour.

HappyMJ

showmethemoney123 wrote: »

No we are doing it direct. AIP done online.
Barclays have a 3.79% fixed for 2 years at 95% LTV, which is the one we are hoping to get.
Halifax is 4.09% for 2 years. They have the £2000 cashback, but it ends next week
The plan is to overpay in the next 2 years to hopefully get it down to 90% and then get the better rates when re-mortgaging.
Do you think a broker would be beneficial here? Are there many better deals around, given the size and LTV we are working with?

I hope that's a typo Barclays you can get 2.79% fixed for 2 years 95%.

showmethemoney123

Is that the Family Springboard? We don't have guarantors

showmethemoney123

I'll get in touch with a broker anyway and see what they have to say. Any recommendations?
We're relatively new in our area, so can't really get a local recommendation from family.