Self employed FTB

[simon]

Hello

I have a deposit

But the bank won't lend me very much because my accountant reduces my income to a few grand a year for tax purposes

The bank said to have a word with accountant to not reduce my income and then re apply next financial year...

Any other suggestions ?

ACG

How much is your income on the most recent accounts and previous accounts and how much are you hoping to get from the bank?

[simon]

My accountant puts income at 12 grand per annum for passed 4 years...

Bank offered to lend me 31 grand...

Ideally I need to lend 80 / 90 k ....

ACG

Are you a limited company?
Are the net profits of the company higher?

somethingcorporate

Then you'll need to be "visbily" earning £20-25k plus to stand any chance of securing a mortgage that large.

[simon]

Not a limited company

My net profit is 25k plus per year

It shows on my bank statements the amount that gets paid in to my account (my income / wage)

But bank will only go by what is on paper from my accountant !

csgohan4

you can't have tax efficiency and earn good on paper for the lenders in our case, so you need to show on your tax return a modest income to satisfy affordability criteria

ACG

Your accountant can only put through legitimate business costs.
Accountants can only be "good" to a certain extent.

Ultimately, you can not have your cake and eat it. You can not have business expenses but then ask them to be ignored when applying for a mortgage. Your business needs those items/services in order to trade, so they will always be a cost.


If your business is turning over £100,000 and expenses are £99,000 then you are not earning £100k, you are earning £1k.

csgohan4

some people purposes draw more salary or dividends the 2 years or so before a mortgage to have something on paper