Getting a mortgage and disguised earnings?

Thrugelmir

user1977 said:

ACG said:

user1977 said:

ACG said:

is it legal (in the same way as what Lewis Hamilton does is legal and classed as tax avoidance) or is it illegal (in the same way as what Jimmy Carr did and classed as tax evasion)?  

I'm pretty sure Jimmy Carr's tax scheme was also merely avoidance, albeit he apologised and "undid" it.

He seemed to get shouted at where as Sir Lewis didnt.

I guess people don't expect much better from Monaco-dwelling racing drivers.

Sir Lewis has been in Switzerland for some years. 

amnblog

A loan from the business is not income.
Repayments from a loan to the business are not income.

Either way the lender will not have it.

Both the Broker and the Lender are legally bound to report anything that could be money laundering or tax evasion.

vixmony

amnblog said:

A loan from the business is not income.
Repayments from a loan to the business are not income.

Either way the lender will not have it.

Both the Broker and the Lender are legally bound to report anything that could be money laundering or tax evasion.

My thoughts exactly. I have told him to withdraw the application and have a clean start and have a proper employer. He still feels though that the broker will be able to get this over, somehow! 

jimjames

vixmony said:

The issue is that the mortgage broker has now asked for them to provide bank statements and they will be able to see that he gets more money, coming in than he told the mortgage company. Will this be an issue with the mortgage company? that he gets more than he told them? Would they want to know the source of the other income?To be honest, from my end, I told him I would be more worried about him being locked up, by the tax man. 

Not suggesting this will be the case and I've not applied for a mortgage for a few years but my bank account shows regular payments in every month of several thousand pounds above my salary. They're entirely legal but that wouldn't be obvious from the bank account summary. If the payments aren't being claimed towards the mortgage LTV calculations will there be a problem? I'm assuming the other way round if the payments were needed then it would definitely be an issue.

user1977

jimjames said:

vixmony said:

The issue is that the mortgage broker has now asked for them to provide bank statements and they will be able to see that he gets more money, coming in than he told the mortgage company. Will this be an issue with the mortgage company? that he gets more than he told them? Would they want to know the source of the other income?To be honest, from my end, I told him I would be more worried about him being locked up, by the tax man. 

Not suggesting this will be the case and I've not applied for a mortgage for a few years but my bank account shows regular payments in every month of several thousand pounds above my salary. They're entirely legal but that wouldn't be obvious from the bank account summary. If the payments aren't being claimed towards the mortgage LTV calculations will there be a problem? I'm assuming the other way round if the payments were needed then it would definitely be an issue.

I would think relatively commonplace for people to have incoming payments other than salary. There could be a money-laundering issue if you can't verify the source of all the funds (assuming your deposit is coming via the same account).

vixmony

user1977 said:

jimjames said:

vixmony said:

The issue is that the mortgage broker has now asked for them to provide bank statements and they will be able to see that he gets more money, coming in than he told the mortgage company. Will this be an issue with the mortgage company? that he gets more than he told them? Would they want to know the source of the other income?To be honest, from my end, I told him I would be more worried about him being locked up, by the tax man. 

Not suggesting this will be the case and I've not applied for a mortgage for a few years but my bank account shows regular payments in every month of several thousand pounds above my salary. They're entirely legal but that wouldn't be obvious from the bank account summary. If the payments aren't being claimed towards the mortgage LTV calculations will there be a problem? I'm assuming the other way round if the payments were needed then it would definitely be an issue.

I would think relatively commonplace for people to have incoming payments other than salary. There could be a money-laundering issue if you can't verify the source of all the funds (assuming your deposit is coming via the same account).

user1977 said:

jimjames said:

vixmony said:

The issue is that the mortgage broker has now asked for them to provide bank statements and they will be able to see that he gets more money, coming in than he told the mortgage company. Will this be an issue with the mortgage company? that he gets more than he told them? Would they want to know the source of the other income?To be honest, from my end, I told him I would be more worried about him being locked up, by the tax man. 

Not suggesting this will be the case and I've not applied for a mortgage for a few years but my bank account shows regular payments in every month of several thousand pounds above my salary. They're entirely legal but that wouldn't be obvious from the bank account summary. If the payments aren't being claimed towards the mortgage LTV calculations will there be a problem? I'm assuming the other way round if the payments were needed then it would definitely be an issue.

I would think relatively commonplace for people to have incoming payments other than salary. There could be a money-laundering issue if you can't verify the source of all the funds (assuming your deposit is coming via the same account).

Yes my thoughts as well. For him he has a couple of bank accounts but the loan payments, go into the same bank account he gets the wages he put forward as his genuine pay. If he was asked what these payments are, as they are regular, he would not be able to explain. Also as has a couple of other bank accounts, would closing the bank account with the loan scheme help, and he can then supple new bank accounts without the loans? as he's now done with the loan scheme, it nearly caused the poor chap a devorce, as his wife didn't know what he was upto to.