Mortgage Help!!!!

CDMAF

I'm in need of some help and advice!!!

My husband and I have just agreed a price to sell our house and have put in an offer on another property which has been accepted. We'd been to see our mortgage adviser prior to making an offer and had been told that based on our income we'd be able to borrow more than enough to purchase the new property. However, having now started the process of purchasing the new property our mortgage adviser has informed us that as my husband has been both employed and self-employed each year for the past 3 years it is unlikely that we will be able to borrow enough to purchase the new property as lenders will only take into account my husbands self-employed figures and not his earnings from employment aswell.

Has anyone else had this problem or been in this situation and found a way around it? We'll be absolutely devastated if we can't now purchase the property of our dreams and with our second child due any day I could do without the added stress!!!!

Please, please, please can someone help put our minds at ease?!!!!!!

ACG

Find a new advisor. There are lenders out there.

amnblog

Lenders will typically factor in both incomes but may only consider half of the secondary income.

Have your seen a 'mortgage adviser; working for a lender? Or a 'mortgage broker' considering all lenders?

CDMAF

We have seen a mortgage broker. Having provided further information on my husbands income to him he is now even more confused by my husbands income! For the years 12/13, 13/14 and 14/15 my husband was both employed and self-employed throughout the year, however, during 14/15 the Government changed certain regulations which meant if he was working through and agency he would have to pay both employers and employees NI but was not considered to be 'Employed'. We have this is writing in a contract my husband has received which states that under no circumstances was he considered an employee of the company and would not receive any employee benefits and that he is in fact considered to be working through the Agency on a Self-Employed basis, however, the SA302 we have for that year states only an Employed income and not part employed and part self-employed as per the previous year's SA302's. We've used this mortgage broker before and never had any problems until now but we get the impression he thinks we're just being awkward for the sake of it!! We're not at all and we're desperate not to lose out on this house so we're doing all we can to clarify the situation with him and providing any evidence we can but he whole thing is causing a lot of stress our end!! Our broker has said that we need to prove 'continuity' therefore need to provide an SA302 that shows both employed and self-employed income as per the previous years but I don't think this is something we'll be able to provide now given the Government changes. I'm so confused by it all and at my wits end :-( The whole point in us using a broker was to get the best deal we can have someone else deal with everything for us as we have enough going on without the added pressure of searching through hundreds of different mortgages available :-(

SavingSteve

Change your broker.

ACG

Why has your accountant filed your income as employed if you are self employed?

I think this is far too complicated for this forum.

On the one hand there are lenders who will work of one years accounts/SA302s. However, if they see that you have an SA302 that states your full income is from an employed source they are going to ask why you have an SA302 and not a P60.

I think the broker is lacking here, but I do not think your accountant has helped.

But in saying that, I am only basing it on what you have provided here. Without knowing a lot more it is difficult to say for sure. I would sit down with your accountant and understand why they have declared your full income as employed when you have paperwork that states you are self employed.

Either relay that information or get it in writing and speak to your broker/new broker. It is their job to discuss it with lenders account managers/underwriters before coming back with a recommendation. To just say it can not be done without making any calls is poor - assumng he has not bothered to make any calls and do some research.

amnblog

The SA302 will show both sets of income (employed and self employed) as both are entered in the tax return.

The complication is identifying where the two sources of income are coming from to the Lender's satisfaction and managing the affordability for two income sources.

A competent broker should be able to manage this, yours does not sound like one.

CDMAF

Thank you for your replies.

Our broker has now managed to find us a lender.

Unfortunately after having spoken to HMRC at length about our situation and the regulation changes made that year, and also the way the figures are shown on my husbands SA302 it would appear that although my husband was Self Employed for all of 14/15, because he worked through an Agency (despite them providing in writing that he was in no way an employee of the company and was working on a self-employed basis) it was part of their terms that my husband would have to pay both Employers and Employees NI, this is why it is showing on his SA302 as employed. Unfortunately there is nothing we can do about it but have at least managed to clarify the situation to the satisfaction of our broker and a lender!!

Thank you all for taking the time to respond to me, it's very much appreciated and was a great comfort to know that people who knew what they were talking about saw a way around our predicament!

Wishing you all the very best and thanks again :-)

Thrugelmir

CDMAF wrote: »

(despite them providing in writing that he was in no way an employee of the company and was working on a self-employed basis)

That's an extremely grey area. Unless you operate through a limited company the employment agency will protect themselves.