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Switching to PAYE to apply for a mortgage
Phil92
Posts: 1 Newbie
Hi all
My wife and I are currently in the process of buying our first home. We put down an offer on a place we liked last week and have just had it accepted.
The issue is that, despite being assured all was okay by our financial adviser prior to putting our offer in, we've since found out that there's a bit of an issue in that I work for a small company and am paid in dividends. I won't bore you with the details, but essentially, I need to switch to PAYE in order to borrow enough for the mortgage.
I'm currently talking to the company accountant and he's okay with switching me over to PAYE from my next payslip onwards, but I don't know where I stand with the flat I've had an offer accepted on. Will I be able to continue with this purchase or do I need to withdraw my offer and start searching again after a couple of months on PAYE?
Any help would be appreciated, the financial advisers I've spoken to have been incredibly unhelpful so far.
My wife and I are currently in the process of buying our first home. We put down an offer on a place we liked last week and have just had it accepted.
The issue is that, despite being assured all was okay by our financial adviser prior to putting our offer in, we've since found out that there's a bit of an issue in that I work for a small company and am paid in dividends. I won't bore you with the details, but essentially, I need to switch to PAYE in order to borrow enough for the mortgage.
I'm currently talking to the company accountant and he's okay with switching me over to PAYE from my next payslip onwards, but I don't know where I stand with the flat I've had an offer accepted on. Will I be able to continue with this purchase or do I need to withdraw my offer and start searching again after a couple of months on PAYE?
Any help would be appreciated, the financial advisers I've spoken to have been incredibly unhelpful so far.
0
Comments
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I have just done a mortgage for someone (completed a couple of days ago) who owned 6% of the company and was paid in small salary and mainly dividends so it is possible.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Switching to PAYE from mainly dividends will cause a major reduction in your net pay, are you sure you will be able to afford the repayments and more importantly is it worth it?
Your financial adviser isn't very good if he hasn't managed to get you a mortgage offer based on your SA302 provided it shows enough income to satisfy the affordability criteria. You are most likely better off changing him, than changing to PAYE and lose a sizeable portion of your income to NI0
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