First time buyer with a complex financial history needing advice!

cqweaky

Here's the numbers crushed for the last financial year;

£11,500 PAYE (Employment)
£7,700 Net Profit
-£5,500 Net Income

The years before were similar, with 2 incomes but the figures much better. The last year hasn't been great for me business-wise but my previous years would have been maybe 10k more. I have 3 questions about a mortgage application if anyone knows the answers I would be more than grateful...

1. Does a mortgage lender use net profit or net income?
2. Does a mortgage lender use a combination of PAYE and self employed earnings?

which leads to… (if yes to both)
3. I left my job in April, how would that effect my application if at all? And if so, will my new job have any effect on it?

BONUS QUESTION;
4, I'm only aiming for a low mortgage on a auction property around £80k with a 10% deposit and the hopes of enhancing and restoring it to a much greater value. What chances do I have of getting a mortgage given the information above?

Thanks! :j

Edi81

You need a broker but it isn’t looking too promising

csgohan4

generally can lend x4.5 of your income, if your self employed you would need minimum 1 years accounts to show, but your income is very low to afford 80k and unlikely.


But check with a broker to see if you can get somewhere

ACG

How can you have a net income of minus £5,500? Your income would be £0.

Lets maybe start with the basics.
If you are a limited company:
How much did you take from the company PAYE on your self assessment?
How much did you take from the company as dividends on you self assessment?

If you are a sole trader, what was your net profit after business expenses on your self assessment?

You self assessment is also known as an SA302 and would look something like this:
https://thumbsnap.com/SnfhU45x

Rick_Albright

You could use my self proven tactics.

https://forums.moneysavingexpert.com/discussion/5864183/mortgage-success-story-self-employed

MortgageMamma

Rick_Albright wrote: »

You could use my self proven tactics.

https://forums.moneysavingexpert.com/discussion/5864183/mortgage-success-story-self-employed

Albright - You committed mortgage fraud, and you are STILL bragging about it encouraging vulnerable people to follow in your dodgy footsteps.

OP - do not do this. This man is continually reposting his "methods" on here and you could land yourself with a conviction if you do this. There are very robust methods to ensure people don't do this and you would be very likely to be caught and find yourself in a position not to be able to get a mortgage at all.

foxy-stoat

So instead of earning money you are paying out £5,500 and making a £7,700 profit on it.

Need to go back to school I think.