Bank statements and PayPal deposits - First time buyer

aiwnjoo1

Sleepless night no1

amnblog

Your broker is underwriting from your employed income.

Your PayPal payments from freelance work should not come into it and if your are avoiding tax you are not in the Google league yet? Yes, you should declare it on your self assessment return. If you have earned it this tax year you don't need to declare it yet anyway.

I would be surprised if the lender even mentions the PayPal credits as most of us sell the odd item on eBay as a minimum.

I would be confident you have bigger things to worry about. If concerned, consult your broker, not the part time tax inspectors on this forum.

csgohan4

maybe tax investigation insurance?

aiwnjoo1

Google league? Also im not avoiding tax I simply didn't understand it therefore have now started the process of paying tax that is due so everything is above board. No need to keep going on about it.

Quote: I would be confident you have bigger things to worry about.

What do you mean by this or was it again a reference to tax?

AnotherJoe

aiwnjoo1 wrote: »

ok im worrying a bit more now.

1. My partner has an overdraft of 1,000 will this be a problem? her income is around £900 per month but i am in the position with savings to clear this for her if the lenders require.
Should have done it months ago its a bit late now.
Technically her income is less than what she owes on the student overdraft
"technically" ? Seems you mean "actually" !

so im wondering if they will discount her income as its a joint application, I pay all bills however.
Yes they will count her income. And look at her overdraft.

2: There are some deposits from savings and paypal which they are saying is sustaining my day to day living which is wrong, my affordability from my income plus bills shows that we have about £1300 a month disposable income. Because we are buying things for the new home and saving, my monthly bank statement is around 0 so thats why they think that, will this be an issue?
It could be. Why are you buying things for a home now and muddying the picture before you've even exchanged contracts?

3: I have been asked for my savings statements which is fine however all deposits into savings is from PayPal will they then go digging into that?
Well they may if you are relying on "savings" for daily spending because in that case you are relying on Paypal despite saying you aren't. Are your savings accounts increasing or diminishing?

Will getting a parent to commit to paying the mortgage if it falls behind help,
Only if you are applying for one of those type of mortgages. Are you?Are parents happy to commit to paying your mortgage for the next 30 years? Nice parents !!
even though this will never happen and we could pay the mortgage payments three times over my statements don't really show that.
Your broker should have advised you (if it wasn't obvious???) to have cleaned up your bank accounts before applying so they would show that, and not show you apparently living off savings fed by PayPal.
Will this help or am i over worrying.
No, and possibly not, in that order. Its all a bit late now though, there are things you could have done 3 or so months back that you cant do now at the point of application.

The PayPal deposits are not in the thousands, 50/100,200 here and there over three months, same into the savings account.

Im just really worried about all this. I have contacted HMRC and awaiting a callback to discuss further so thats in the pipeline which is good.

When you started looking for a mortgage, were you not advised to clean up your bank accounts?

You'll just have to see what will happen, you would need a time machine to fix some of these issues, if they turn out to be issues.

Stop buying stuff for a house you may not get yet, aside the mortgage, other issues may derail this purchase. Clean your accounts up, stop living off your savings (about which I'm confused are you putting money into savings and then taking it out again to live on? So seems you are 'saving' too much?)

Good luck.

Thrugelmir

aiwnjoo1 wrote: »

3: I have been asked for my savings statements which is fine however all deposits into savings is from PayPal will they then go digging into that?

Paypal is not the source of the money. The money comes from elsewhere. Anyone can pay or transfer money to anyone else using Paypal all around the globe. .

amnblog

aiwnjoo1 wrote: »

Google league? Also im not avoiding tax I simply didn't understand it therefore have now started the process of paying tax that is due so everything is above board. No need to keep going on about it.

Quote: I would be confident you have bigger things to worry about.

What do you mean by this or was it again a reference to tax?

I mean you have more important issues whenbuying a property than being arrested by HMRC anytime soon for earning a few hundred pounds which they would expect you to declare yet anyway.

aiwnjoo1

My savings shows it is increasing not decreasing, but funded by PayPal. Essentially i always save as much as possible and then when I need to if I saved too much transfer some out to cover living expenses that accrue once all bills are paid. They savings never substitute earnings to pay bills.

I will keep you all posted on the outcome. If declined I will just clean it all up for a future application and lesson learnt!