Recently self employed have full amount for 35% shared ownership but wont accept due to tax return?

leetrx

Hi Guys
so me and my partner are buying our first home and fallen in love with a particular property. This is with the help to buy scheme. we are both recently self employed, and i have inherited a deceased reletives estate which allows us to pay the 35 percent share straight away. but when doing the affordability check they want a full years tax return. our combined total income is roughly £4200 per month but neither of us have a tax return. I would appreciate any advice you may have as im scratching my head as to people having a small deposit and paying a mortgage cpompared to myself who will be paying £55,000 upfront and then £200 a month rent.

Many Thannks

Bibbitybobbitybop

Lenders need evidence. For us self employed that's tax returns and SA302s. Most need two years' worth, some three years. 

[Deleted User]

Bibbitybobbitybop said:

Lenders need evidence. For us self employed that's tax returns and SA302s. Most need two years' worth, some three years. 

There is no lender. they want to buy the 35% as cash

[Deleted User]

I would guess they need tax return to confirm your earnings are below the thresh hold for shared ownership eligibility.   Without this  tax return then you are essentially free to make up an income which they obviously cant accept as they cant verify it

haras_n0sirrah

I am a shared ownership mortgage specialist and do affordability assessments for housing associations
The issue you have is even as a cash purchaser (which would need to be signed off by the hca as they really only allow cash in certain circumstances e.g. age and disability) you would need to evidence you have sufficient income for the rent and service charge.
I imagine the issue is a combination of being too affordable based on your unprovable income but not affordable enough as you can't prove you earn it.

leetrx

haras_n0sirrah said:

I am a shared ownership mortgage specialist and do affordability assessments for housing associations
The issue you have is even as a cash purchaser (which would need to be signed off by the hca as they really only allow cash in certain circumstances e.g. age and disability) you would need to evidence you have sufficient income for the rent and service charge.
I imagine the issue is a combination of being too affordable based on your unprovable income but not affordable enough as you can't prove you earn it.

I have supplied every payment invoice since I started in January which shows I can more than afford the rent. However I do have a poor credit rating but they do not do one in this circumstance, it’s just the simple fact I have no tax return but I’m paying £55000 cash to buy the share ?🤔

[Deleted User]

There is a clue in the name of the scheme being affordable housing. Its very restricted. You cannot earn too much ( proof needed = tax return ) and you cannot earn too little - debts, rent, sc and mortgage must not be 45% of net income. You have no tax returns you cannot prove income.
Also must not be able to afford house on open market. £55k deposit and £4k income ...... well that doesnt really fit that criteria either. For a house costing around £160k with £55k deposit leaves you needing to raise a mortgage of £105k
on a joint salary of £50k ..... you could easily borrow £200k 
you therefore fail on that aspect too.