Mortgage as self employmed

ada.ralu

Hi everyone. I wonder if you can help......
-we are applying for a mortgage and my hubby is self employed. He works as a driving instructor for X company. He doesn’t have a business account as he never needed one. He fills in his tax returns so no accountat. The car he uses for his driving lessons is on a finance in my name. The amount he pays monthly is beeing deducted from his gross income. However the lender doesn’t want to accept that because hubby doesnt have an accountat and the direct debit for the car comes out from our joint account. Any advice how i could prove that he’s actually paying for that car from his gross income? The lender wants to use that loan as a family expens. Thanks

ACG

Have you asked the lender what they will accept?
If they will not accept anything, then a new lender is needed.

You could maybe provide a copy of the self assessment or you could pay an accountant to verify your submission and write a letter to confirm as much - but that will take longer and cost.

ada.ralu

The mortgage advisor said it has to be used in the affordability calculation because it is on my name and not on the company name or hubby!!!8217;s name and it!!!8217;s not being paid for from a business account. Because he actually works for someone else in a self employed basis he never needed a business account. He!!!8217;ll have to get in touch with hmrc and maybe ask for a copy of the self assessment as the detailed calculation can!!!8217;t be seen on the sa302

ACG

Is it a Mortgage Advisor who works for the bank or a Whole of Market/Independent Mortgage Advisor?

You need to find out what the bank will accept. There is no point requesting paperwork that may not be acceptable. You are just wasting time.

ada.ralu

It!!!8217;s a mortgage advisor who works for the bank. From what she said nothing is acceptable.
I!!!8217;ve suggested so many things and I!!!8217;ve explained and showed that the car is being used for his work but because the dd is not coming out from his business account(he doesn!!!8217;t have one) and I can!!!8217;t show on the sa302 that!!!8217;s being deducted from his gross income they won!!!8217;t accept it. That!!!8217;s why might be a good idea to get a copy of the actual self assessment where se detailed expenses are showed

[Deleted User]

So you're using a mortgage adviser via your bank ?
Go elsewhere.

Using your banks Mortgage Adviser limits you greatly, find another adviser who can look at all deals available from all areas - not just the ones your bank is selling.
This is a big purchase so go to someone who has the most extensive knowledge.

ACG

If the advisor at the bank has said nothing is acceptable, then you are just wasting time trying to force the case through with them. It does seem odd, but if that is their stance then you need to cut your losses and find a new lender or use a proper Mortgage broker.

Mortgage_Adviser

Unfortunately what you are doing (The business outgoing is not in the business name) is going to byte you greatly.
I am not an expert in accountancy by any means but I am not even sure what you are doing is legal. If the car was bought in your name it is your outgoing so technicall he is paying money for leasing it from you.


Are you declaring anywhere the money he pays you? Are you showing it on your tax return as an income?

butterflybook

you need a broker for this one