sole-trader and ltd company income

lifegoeson2013

Good morning, hoping someone can help.
I need to move house and I'm trying to find out how much of a mortgage I can potentially aim for which will determine the house price for my house-hunting.

I’m self-employed as sole-trader and have 3 years accounts – SA302s for 2014 - 2017 and about to complete accounts for 2017-18.

I also have an active limited company and I worked from April to December 2017 and have income for that period.

Is it possible that a lender would take into account last year’s ltd co income as well as my sole-trader income for 2017-18?

Thanks in advance.

Lee_Berry_-_Mortgage

Hi lifegoeson2013.

I can answer this for you. Most lenders will not differentiate between sold trader or limited company status, and so, you can use your last 2 years SA302's. Most lenders will take an average of the last 2 years 'total earnings' figures. So, for your sole trading, this will be your earnings, for your limited company status, this will be your PAYE plus your dividends. Either way, this will show as your 'total earnings' on your SA302. Hope this makes sense. If you need any help on this, feel free to get in touch.

Lee.

lifegoeson2013

Lee_Berry_-_Mortgage wrote: »

Hi lifegoeson2013.

I can answer this for you. Most lenders will not differentiate between sold trader or limited company status, and so, you can use your last 2 years SA302's. Most lenders will take an average of the last 2 years 'total earnings' figures. So, for your sole trading, this will be your earnings, for your limited company status, this will be your PAYE plus your dividends. Either way, this will show as your 'total earnings' on your SA302. Hope this makes sense. If you need any help on this, feel free to get in touch.

Lee.

Lee - you've just made my day :j:j I've just emailed my accountant to ask him about the turnaround time for both sets of accounts and production of SA302 for 2017-18.
I spoke with a mortgage adviser from a large group and they told me that only my sole-trading income would be taken into account, so I've been quite worried about this. However, that's probably true for the lenders he was considering.
I will probably pick your brains at a later day if that's ok?
Thanks again!!:T

kingstreet

lifegoeson2013 wrote: »

I also have an active limited company and I worked from April to December 2017 and have income for that period.

Without at least one year's trading and if it ended in December, no lender is going to use this income.

silvercar

Lee, Are you a mortgage broker?

amnblog

Don!!!8217;t get excited by what Lee has said here. Lenders will not take your limited Company income into account in most cases.

A good broker may find you a Lender that would consider it but it will depend on your personal circumstances. A year Limited and your options open up.