Another remortgage question(S)

mitchaa

Rosiesworld wrote: »

We have checked and also told the dealer about our intentions and its normal Finance with black horse.



Its not a loophole OH recieve £445 pw from a contract. out of that he has to deduct all his business costs now the tax man says its easier for him if he claims back 40p/mile for the 1st 10k then 25p for the rest. Now he has chosen not to get a big chelsea taxi and claim back all repairs insurance petrol etc etc etc. So he claims his mileage allowance and that wipes out his Income.

he pays a fair amount in other "hidden" taxes. so we certainly dont feel guilty about claiming what were alowed

he is in the business of savings lives and with doing 75K miles a year on our roads believe me he's risking his all day everyday.

So your hubby pays absoloutly no income tax or national insurance due to his mileage wiping out his income, and as a result you are entitled to lots of benefits? Does he not even pay his NI stamp to keep him in line for state pension?

So his pay isn't really £445 per week even though his bank account says it is as his running costs are roughly £130pw in fuel and £43 pw in car finance leaving an income of £272pw.

BTW..Your car must be averaging 61mpg for your mileage and fuel costs to add up.

75000/47weeks = 1600miles per week. You say you spend £130ish on fuel per week and it costs roughly £5per gallon of diesel. (£130/5 = 26gallons of fuel used) 1600/26 =61.5mpg.

What car do you drive, that is very very good average consumption.

You have said in your post that you clear £30k after fuel and finance?

Your hubby has £272pw left over after his real expenses are taken off. £272 x47 = £12784.

You get roughly £10k per year in benefits:rolleyes:

And you bring in about £7200, which is near bang on the £30k you said.

What about other running costs? Your hubby obviously doesn't contribute into the system through NI or tax but 75000 miles on most cars = 5 yearly servicings and at least 2 x tyres/brake discs/pads. Thats at least £2000 per year for that.

Also like people have said a car on a finance agreement with 75000 miles usage, are you not going to get fined heavily in extra miles? Its normally 10-15k annual usage rate??

Sorry for scrutanizing your finances, im just intrigued to get my head around the fact you manage to claim £10000net per year in benefits with a decent income between you. I can see the logic behind it with the 40p/25p mileage, i just dont think its right.

I suppose at least you are not claiming free housing and council tax benefit etc

Must be a shi**er for mortgages though based on an income of £8000:rotfl:

MarkyMarkD

Also like people have said a car on a finance agreement with 75000 miles usage, are you not going to get fined heavily in extra miles? Its normally 10-15k annual usage rate??

We've done this bit already. On an HP agreement there are no mileage limits as the idea is that you are going to keep the car at the end of it. But you can return the car after paying 50% of the original cost without penalty because that's the law. So no, he's not going to get "fined" in extra miles.

The OP has already said they have a friend who does the servicing so I don't expect they are incurring £2,000 of maintenance costs as you suggest.

Rosiesworld

MarkyMarkD wrote: »

We've done this bit already. On an HP agreement there are no mileage limits as the idea is that you are going to keep the car at the end of it. But you can return the car after paying 50% of the original cost without penalty because that's the law. So no, he's not going to get "fined" in extra miles.

The OP has already said they have a friend who does the servicing so I don't expect they are incurring £2,000 of maintenance costs as you suggest.

Thanks mark
was starting to sound like a witch hunt then


mitchaa

I presume you have the advantage of being employed so you get holiday pay, sick pay, oh not being laid off if it goes quiet, security of having a Employment contract.
My OH took a chance Got off Income support and managed to get a good reliable contract and people are having a go because he isnt spunging off the goverment.
He is woking and as a result gets Tax credits

My OH doesnt have to pay NI but does so at £30ish quarter. He pays at least £80 per week in tax so he does contiute to THE system
Your sums dont all add up either 47 weeks in a year He is self employed and a workaholic. so make that 51 weeks a year
The car is a skoda fabia diesel saves him £50 a week over the last car.

I dont really know why I am rising to this but
If the tax man says If you do this and this and you will save x amount a year I defy anybody not to do it.



we have done the last £2 to live on and we have sold our tv to buy food. So please dont have a go because we are above board and legit. There are plenty of taxi drivers and "self employed" couriers out there who are not declaring.

But Thank you all for the advise It appears that if you make more than the last person the expect to get flamed.
So you have to be living in poverty to get some decent advise
Oh but then if you have the internet that would be a luxury and frowned upon.
I thought these were the "Money Saving" forum I must have signed into the "be judged" forum instead.

Dan_Collins_2

Rosiesworld wrote: »

Thanks mark
was starting to sound like a witch hunt then


mitchaa

I presume you have the advantage of being employed so you get holiday pay, sick pay, oh not being laid off if it goes quiet, security of having a Employment contract.
My OH took a chance Got off Income support and managed to get a good reliable contract and people are having a go because he isnt spunging off the goverment.
He is woking and as a result gets Tax credits

My OH doesnt have to pay NI but does so at £30ish quarter. He pays at least £80 per week in tax so he does contiute to THE system
Your sums dont all add up either 47 weeks in a year He is self employed and a workaholic. so make that 51 weeks a year
The car is a skoda fabia diesel saves him £50 a week over the last car.

I dont really know why I am rising to this but
If the tax man says If you do this and this and you will save x amount a year I defy anybody not to do it.



we have done the last £2 to live on and we have sold our tv to buy food. So please dont have a go because we are above board and legit. There are plenty of taxi drivers and "self employed" couriers out there who are not declaring.

But Thank you all for the advise It appears that if you make more than the last person the expect to get flamed.
So you have to be living in poverty to get some decent advise
Oh but then if you have the internet that would be a luxury and frowned upon.
I thought these were the "Money Saving" forum I must have sign ed into the "be judged" forum instead.

Roseisworld, welcome to the forum, when you post on this site you run the risk of being judged, it seems to be the way.

To be honest from reading your posts I think I know what you are getting out, however its all about timing. 4 years ago pulling the equity from your home and investing in property may have been a good idea.

However currently, lenders are being very careful about how they lend money. At 95% you will be asked to prove income, no lender currently offers a 95% self cert mortgage. 90% is the highest and you have to be A+ on the credit score side. If I was you, I would stay with your lender and sit tight and just keep an eye on what is happening.

I also get what you are saying about your earnings. Not so much now, but I drive a lot of miles and in my first and I think my second years it meant my net profit was low. Not so much now as I dont do as many as 75k but I am not a taxi driver!

Good luck with whatever way you go!

MarkyMarkD

We're not all like that, rosiesworld. The fact remains that you've had honest advice that you are unlikely to be able to remortgage successfully when your taxable income is so small. And that gives you a problem.

It's great that your husband works so hard to look after his family and difficult that the circumstances make it hard to finance things (especially your home).

Rosiesworld

Thanks to both of you

Dan
Our idea was to pull the equity out of our house now before it drops and sit on it.


Markymarkd
Cheers
I have no problem with blunt answers. its being judged That gets my back up.

owitemisermusa

Rosiesworld wrote: »

Thanks to both of you

Dan
Our idea was to pull the equity out of our house now before it drops and sit on it.


Markymarkd
Cheers
I have no problem with blunt answers. its being judged That gets my back up.

Pulling out the equity is bound to cost you a fair bit, is it worth it? You will pay for having that 'equity' in raw cash so you must be sure the returns from investing it/saving it in high interest account must be enough to justify it.

Also I hope you have solid resolve not to dip into it.

As someone pointed out, you need to formally assess how much you can actually get.

In a few years' time who knows what the market will be like (hoping it's better myself but hey...)

Dan_Collins_2

I knid of get that idea, but you are putting your property at risk.

neverdespairgirl

Hi Rosie - I'm self-employed as well, and my tax return includes deductions from my gross income for business expenses. Some are obvious - like the amount I pay for rent and office expenses, etc.

I do the pence-per-mile thing too (although I drive very little for work) and it is the simple, easy, and perfectly legal way of calculating it, so don't worry about people having a go!

mpg

Dan_Collins wrote: »

I knid of get that idea, but you are putting your property at risk.

I`m trying to understand how the OP is putting their property at more risk.
If they borrow an extra £45 and put it in an account and things get difficult they could pay it all straight back to the lender and put there mortgage in a similier place to where it is today(barring any overpayment fees)


If they wait a couple of years then buy a BTL then the market would hopefully be better.