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    • 2scompany3sfamily
    • By 2scompany3sfamily 8th Aug 18, 8:10 PM
    • 5Posts
    • 0Thanks
    2scompany3sfamily
    A pair of self employed FTBs...
    • #1
    • 8th Aug 18, 8:10 PM
    A pair of self employed FTBs... 8th Aug 18 at 8:10 PM
    Hi,

    I am a self employed SAHMum with an annual income of 10,000 (6,000 profit). The business is four years old in November.

    My husband is self employed (builder) (contracted long term to a company) and earns 48000 annually after tax. He has been in this job for 2.5 years.

    We receive the 80ish child benefit for our one child per month.

    Credit score (if they even count) are very high. No faults.

    We hope to have a 15,000 deposit (part gifted) + 5,000 for fees.

    Properties in our area are 150,000-180,000.

    We have 0 debt and our overdrafts are not used.

    Have we a hope in hell of being accepted for a mortgage?

    We are booked in to visit Natwest for an AIP this month.

    Apologies if the information is too vague - this is my second post here and mortgages in general boggle my mind.
Page 1
    • middleclassbutpoor
    • By middleclassbutpoor 8th Aug 18, 8:40 PM
    • 192 Posts
    • 168 Thanks
    middleclassbutpoor
    • #2
    • 8th Aug 18, 8:40 PM
    • #2
    • 8th Aug 18, 8:40 PM
    Are the income figures you have supported by SA032's or accounts.

    How many years do you have and are the earnings similar for previous years. You need 2 years normally and some lenders take the latest and some will look at both years and consider them both.

    You would probably be better going to a broker who can ensure the lender is an appropriate fit if you are not sure if they are right. Ultimately, your income looks on the face of it as feasible given you have 54k to be considered.

    It would concern me that on the level of earnings you have, that you have only managed to save a small amount and need a gifted deposit (another consideration for ensuring you get the right lender).

    Even if you meet natwest's criteria, I would always be concerned that you haven't got the best deal as there could be better products out there. That would be the benefit of using a broker.
    • ACG
    • By ACG 8th Aug 18, 8:57 PM
    • 17,307 Posts
    • 9,167 Thanks
    ACG
    • #3
    • 8th Aug 18, 8:57 PM
    • #3
    • 8th Aug 18, 8:57 PM
    Affordability should be fine from what you have said - although that assumes no debt and your SA302s are fairly consistent - if they have trebled then when it comes to averaging the last 2 years out you might fall short.

    Like anything, the devil is in the detail but on the face of it, you sound like you will be ok.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • 2scompany3sfamily
    • By 2scompany3sfamily 9th Aug 18, 9:15 AM
    • 5 Posts
    • 0 Thanks
    2scompany3sfamily
    • #4
    • 9th Aug 18, 9:15 AM
    • #4
    • 9th Aug 18, 9:15 AM
    My income (the lesser of the two) is consistent over 3 years, my husbands has grown significantly this year.

    Whilst he is self employed - he would most likely be able to get a letter or similar from the company he works for er... Rubber stamping his earnings long term? (Years) If that would even count in considerations...

    Paying off CC debts in previous years from an unplanned pregnancy, redundancy on my husbands part, and a lower main income inhibited our ability to save a deposit. We were living on the line for a long, long time and now, are budgeted to, and tucking away 600 a month.

    I am regretting my decision to go to Natwest for an AIP - and feel that we should be with a broker at this early stage...

    It keeps me up at night, sweating!
    • ACG
    • By ACG 9th Aug 18, 9:20 AM
    • 17,307 Posts
    • 9,167 Thanks
    ACG
    • #5
    • 9th Aug 18, 9:20 AM
    • #5
    • 9th Aug 18, 9:20 AM
    Most lenders will average out the last 2 years earnings. There are lenders who will use the latest years figures (Natwest are not usually one of them).

    There is nothing stopping you speaking to a broker. You do not say when you are booked in, but it is likely a broker will be able to see you sooner than Natwest.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • xpc
    • By xpc 9th Aug 18, 10:55 AM
    • 15 Posts
    • 8 Thanks
    xpc
    • #6
    • 9th Aug 18, 10:55 AM
    • #6
    • 9th Aug 18, 10:55 AM
    Unrelated to the mortgage, but one thing to maybe look at is the child benefit. I don't know much about it but believe that if one of you earn over 50k then you may not be entitled to this, or may have to pay a tax charge. If your partner earns 48k after tax then it sounds like they fall into this bracket.
    You may need to check this as you could potentially end up with a large repayment of the amount you have received.

    Apologies if you have already done everything you need to regarding this, but from your post it isn't clear.
    • Thrugelmir
    • By Thrugelmir 9th Aug 18, 11:51 AM
    • 59,480 Posts
    • 52,797 Thanks
    Thrugelmir
    • #7
    • 9th Aug 18, 11:51 AM
    • #7
    • 9th Aug 18, 11:51 AM

    Whilst he is self employed - he would most likely be able to get a letter or similar from the company he works for er... Rubber stamping his earnings long term? (Years) If that would even count in considerations...
    Originally posted by 2scompany3sfamily
    If he is self employed how can his earnings be rubber stamped? If the company has no need for his services or he is unable to work then he won't be paid. Absolutely no guarantees.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • middleclassbutpoor
    • By middleclassbutpoor 9th Aug 18, 5:43 PM
    • 192 Posts
    • 168 Thanks
    middleclassbutpoor
    • #8
    • 9th Aug 18, 5:43 PM
    • #8
    • 9th Aug 18, 5:43 PM
    Unrelated to the mortgage, but one thing to maybe look at is the child benefit. I don't know much about it but believe that if one of you earn over 50k then you may not be entitled to this, or may have to pay a tax charge. If your partner earns 48k after tax then it sounds like they fall into this bracket.
    You may need to check this as you could potentially end up with a large repayment of the amount you have received.

    Apologies if you have already done everything you need to regarding this, but from your post it isn't clear.
    Originally posted by xpc
    If your gross income is over 50k then child benefit starts to reduce and if the gross income is 60k then child benefit is not payable. Given the way the husband is paid and its not a PAYE it would be difficult to say whether there is a case where this will get picked up by HMRC. As the OP has said there has been a significant increase in income, it may result in a tax charge at some point.

    I believe some lenders will not even build the CB income into the affordability if one person appears to be earning over 50k gross.
    • kingstreet
    • By kingstreet 9th Aug 18, 6:05 PM
    • 33,836 Posts
    • 18,379 Thanks
    kingstreet
    • #9
    • 9th Aug 18, 6:05 PM
    • #9
    • 9th Aug 18, 6:05 PM
    My husband is self employed (builder) (contracted long term to a company) and earns 48000 annually after tax. He has been in this job for 2.5 years.
    Originally posted by 2scompany3sfamily
    is he a CIS sub-contractor?

    If so there will be options to enable you to borrow more with his income averaged from his latest three months invoices.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • 2scompany3sfamily
    • By 2scompany3sfamily 9th Aug 18, 7:19 PM
    • 5 Posts
    • 0 Thanks
    2scompany3sfamily
    is he a CIS sub-contractor?

    If so there will be options to enable you to borrow more with his income averaged from his latest three months invoices.
    Originally posted by kingstreet
    Yes - he is!



    Rgds the child benefit... I hadn't realised, thank you for flagging that for me. Staying above board and on top of things is important to us both! I DID however get my maths wrong earlier, he earns 41K after tax. I will research this thoroughly and be prepared for this income to change if necessary yadda yadda.

    Thanks all for continued advice

    QUICK EDIT: HMRC advises via the calculator that the main salary should be under 50099 - which his is, which leaves no tax to pay on that income... We will be prepared for it should the scales tip. We are a little close to the cut off with his current earnings. A Bonus (ha! yeah... likely story...) Could be the difference here!
    Last edited by 2scompany3sfamily; 09-08-2018 at 7:27 PM.
    • kingstreet
    • By kingstreet 10th Aug 18, 8:57 AM
    • 33,836 Posts
    • 18,379 Thanks
    kingstreet
    Consult an independent broker.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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