Thoughts on our situation?

Mrh1019

Hi everyone, I’ve asked a couple of questions here lately and you’ve all been so helpful. We’re starting to look more seriously about putting a house on the market. I was wondering what people’s thoughts were on us getting a mortgage? Our situation is as follows -
hubby sub contracts - Halifax apparently take gross pay off wage slips so income £44k, my income is £16800. We went bankrupt in 2013, all now wiped from our credit files and not something I am at all proud of. We both have very good credit now according to the three main agencies? Well I think mine is somewhere between good and very good and his is 999!

We have a 50-50k deposit and are looking at buying up to 300k.  

Does anyone know if we stand a chance?

thank you xx 

Mrh1019

Oh we have a car on pcp that we pay £185 per month and £1500 on a credit card x 

MovingForwards

Ignore the score / rating as that's not seen or used by any financial institution, they have their own internal algorithm methods when assessing applications.

What's showing in the credit history and closed accounts sections, on all three credit reference agencies? There is a fourth but rarely used. 
Clearscore, Credit Karma and MSE credit club are where most members access the records.

Due to previously being bankrupt you will want a broker, not the likes of L&G etc as they only like straightforward cases.

What is your OHs actual income as lenders calculate it differently to each other. How long has he been a sub-contractor and has he continued to work throughout this present climate?

Any children?

Any other debts aside from the CC and PCP?

With more information people will be able to offer opinions, and hopefully the resident brokers will pop along later.

Mrh1019

Hi thanks. He hasn’t been working throughout as the company he works for shut for three months. He’s been back five weeks and has those pay slips. We’ll try and drag it out till he has thirteen weeks of pay slips I guess? His gross pay is averaging £44k, profit is around 32k. We are in the process of instructing a broker. 

Our file is completely clear now of anything related to the bankruptcy. 

We have three children. 

He has sub contracted for the same company for eight years.

thanks so much for your help.

x 

comeandgo

If your husband is sub contractor is he not self employed?  In fact he is, you mention profits, he needs to present his accounts, not payment slips.

Mrh1019

comeandgo said:

If your husband is sub contractor is he not self employed?  In fact he is, you mention profits, he needs to present his accounts, not payment slips.

Hi I’ve spoken with Halifax who require pay sleeps for sub contractors xx

Mrh1019

Pay slips 🤣 not pay sleeps 

NatalieAGC

The likes of creditKarma and ClearScore are not CRA’s they are merely 3rd party companies who you allow to access your actual Credit file which will be Equifax / Experian and TransUnion . The above 3rd Parties only update once every 4-6 weeks.   

I also agree with broker and not one like trussle/ L&C etc

TWIGLET1234

I will be surprised if Halifax only want CIS deduction vouchers (you call them pay slips) 
You’ll he asked for 2 years of SA302’s. Do you have those? This shows what’s been reported to HMRC. 

The income that Halifax will take for him is what is shown on there. So the amount that he has to pay tax on. Ignore the CIS tax deductions. The SA302 will show his gross income, less any tax deductible expenses. ie, if he deducts fuel expenses, materials etc. The figure they use is Gross - Allowable expenses. Remember, the CIS deduction is just a way of paying tax as you go, rather like PAYE. Lenders use the gross income just the same as for employed people. Employed people have payslips. Subcontractors have deduction vouchers. But lenders will want what’s been submitted to HMRC. To be fair, anyone could bodge up a CIS deduction voucher (payslip as you call them) 

Mrh1019

TWIGLET1234 said:

I will be surprised if Halifax only want CIS deduction vouchers (you call them pay slips) 
You’ll he asked for 2 years of SA302’s. Do you have those? This shows what’s been reported to HMRC. 

The income that Halifax will take for him is what is shown on there. So the amount that he has to pay tax on. Ignore the CIS tax deductions. The SA302 will show his gross income, less any tax deductible expenses. ie, if he deducts fuel expenses, materials etc. The figure they use is Gross - Allowable expenses. Remember, the CIS deduction is just a way of paying tax as you go, rather like PAYE. Lenders use the gross income just the same as for employed people. Employed people have payslips. Subcontractors have deduction vouchers. But lenders will want what’s been submitted to HMRC. To be fair, anyone could bodge up a CIS deduction voucher (payslip as you call them) 

I have spoken with a broker who has confirmed that for CIS Halifax take wage slips? I’ve also researched on line and this appears to be the case at other places too? I could be wrong though? 

Mrh1019

This is from the Halifax website? Not sure if I’ve read this wrong? Thanks 

Construction Industry Scheme Contractors (CIS)

Applications from customers employed on a Construction Industry Scheme (CIS) Contract will be considered. An average of the latest 3 months income should be used and evidence of the income for these applicants must be provided.

Customers should be treated as self employed if they pay their own tax or sub contract to more than one company.

See more details of the criteria in the Self Employed/Contractors Income Table.