Self-employed mortgage - FTB - better to pay more tax and have higher average income?

K_S · 7 April 2022 at 4:29PM

@frangipan23657 For sole traders, most lenders are happy to go off of the SA302 numbers.

There are also a handful of lenders who will go off of the latest year's numbers (as long as it's not increased by a huge amount from the prior year).

SEISS grants aren't the huge roadblock that they used to be so you may have more options than you think.

If you really need to maximise borrowing, I would recommend getting in touch with a good whole of market broker and ask the question "how much can I realistically borrow?".

MSE guide to finding a broker is here https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3 Good luck!

frangipan23657 · 7 April 2022 at 4:39PM

That's very helpful to know, thanks. My income has increased since the last tax return, and will continue to increase in future ( I have contracts and proof of income) so I'm hoping that I can swing it even if the 2yr average ends up dropping the figure. I do have a broker on board actually, as a newbie, I have just been trying to do some alternative research just to make sure I have got a better idea of the whole process. It all seems to change so rapidly, and is a whole unknown to me as a ftb.

Thrugelmir · 7 April 2022 at 5:10PM

As has been said earlier best to simply declare what you've earnt (net) and pay the tax accordingly. All smooths out in the end. To reduce your actual tax bill contribute to a pension as and when you can afford to do so. There's no point in conning yourself either , interest rates are rising. Inflation is raging. Energy is expensive. Burdening oneself with high levels of debt isn't always the appropriate strategy.