UK mortgage advice

[Play]

Originally Posted by blueuk

NO mortgage company will give you a job when you can't show a P60 showing some earnings for the previous tax year. You can't just get a job 3 months before.

Typo?

Originally Posted by blueuk

Best option go self employed legit, sell some more stealth stuff, make 25k year profit you'll pay 4k max in tax 1.5ni (or has been said go limited and pay dividents to avoid ni) you'll need 2 years SA302 to get a mortgage

If you are the sole shareholder of a limited company, some banks will look at your companies finances, as oppose to the salary/dividends you take out from it. That's neat, because they understand people are trying to be tax efficient.

[J4G3D]

With regards to the last few comments.

My relative had his own business, turned over 1m pounds (pocketed 40k) he was unable to get a mortgage. Had his business for many years. He had to go on the booked on another relatives business, to obtain wage slips and only then could he get a mortgage.

So those saying go self employed.. How do I prove salary without wage slips?

Also, my friend got a mortgage 1 month after getting married. He had no job, just selling cars on the side (not paying tax, not a declared business). He managed to get it no problem.

Just confusing, no doubt I will struggle.

[JamesNorth101]

First instance - chances are he was turned down to to not having a high enough income

Second friend - if it was joint then likely the wife was earning enough. He would not have been able to get one by himself without a proveable income

[J4G3D]

Originally Posted by JamesNorth101

First instance - chances are he was turned down to to not having a high enough income

Second friend - if it was joint then likely the wife was earning enough. He would not have been able to get one by himself without a proveable income

He was pocketing 40k and wanted to buy a 340k house. He said it doesn't matter how much you earn, if you're self employed they'll reject you regardless.

Second friends partner was working. But as he's got a joint mortgage, how did they accept him if he's not worked?

[JamesNorth101]

He doesn’t earn enough to get a mortgage for a house that expansive unless he has a £180,000 deposit

You get a mortgage for 4 times yours annual earnings usually. He would need to have a £34,000 deposit and earn £80,000 a year.

It’s nothing to do with being self employed he simply doesn’t quality

Joint mortgages are done on joint earnings. If the partner is earning enough than that is all that matters.

If you're self employed it's easier to get a broker to find you a mortgage. They will help you find lenders and tell you exactly what the lender needs to see from you.

You would need to explain your entire situation to to them.

Theres too many variables to consider regarding your friends situation to jump to any conclusions.

Originally Posted by JamesNorth101

He doesn’t earn enough to get a mortgage for a house that expansive unless he has a £180,000 deposit

You get a mortgage for 4 times yours annual earnings usually. He would need to have a £34,000 deposit and earn £80,000 a year.

It’s nothing to do with being self employed he simply doesn’t quality

Joint mortgages are done on joint earnings. If the partner is earning enough than that is all that matters.

Exactly this.

[J4G3D]

Originally Posted by blueuk

Plus as has been mentioned a few times, NO mortgage company will give you a job when you can't show a P60 showing some earnings for the previous tax year. You can't just get a job 3 months before.

Best option go self employed legit, sell some more stealth stuff, make 25k year profit you'll pay 4k max in tax 1.5ni (or has been said go limited and pay dividents to avoid ni) you'll need 2 years SA302 to get a mortgage

According to the gov website, to get a SA302 form, you need to work for 4 years?

https://www.gov.uk/sa302-tax-calculation

[JamesNorth101]

Why you have not already gone to talk to a mortgage brokers I don’t know.... they are who you need to talk to

[Play]

You cannot compare friends and family to yourself when you're asking why a lender did lend to Person A but not Person B.

Forget the fact that no two people will be treated the same due to an array of variables, but no two lenders will treat the same person in the same way.

One lender may deem a person risky, reject mortgage application, but another lender may wish to accept.

Look, you've been told all the basics here, and there's nothing more anyone here can add, all you can do now is speak to a broker and see what best can be done.

[J4G3D]

Originally Posted by JamesNorth101

Why you have not already gone to talk to a mortgage brokers I don’t know.... they are who you need to talk to

Because I still have a CCJ, so Im waiting for that to come off first.

No point going to a mortgage broker with a CCJ and no job is there? it is the wrong time to go. Hence why Im asking questions in advance.

[J4G3D]

Originally Posted by Play

You cannot compare friends and family to yourself when you're asking why a lender did lend to Person A but not Person B.

Forget the fact that no two people will be treated the same due to an array of variables, but no two lenders will treat the same person in the same way.

One lender may deem a person risky, reject mortgage application, but another lender may wish to accept.

Look, you've been told all the basics here, and there's nothing more anyone here can add, all you can do now is speak to a broker and see what best can be done.

That is understandable, but you've/others mentioned that you wont get a mortgage unless you've worked solid for 2 years. Why say that if no two people are the same when applying for a mortgage? seen as my friend didn't work for 2 years prior and got a mortgage with his partner.

I have a partner who's currently working as well.

Upon googling, I can't seem to find this 2 year working preference. All I see is that you should be working for a minimum 6 months and that you should ideally be out of your probation period.

Thanks for the info, but I guess I will need to do a bit more research before my CCJ drops off.

A mortgage broker/adviser is on the cards when the time comes.

[JamesNorth101]

Originally Posted by J4G3D

Because I still have a CCJ, so Im waiting for that to come off first.

No point going to a mortgage broker with a CCJ and no job is there? it is the wrong time to go. Hence why Im asking questions in advance.

Need to wait for that CCJ to drop off (which takes 6 years) before applying for anything but you can ask for advise before that to make sure your in the best position when the CCJ drops off.

You really should go speak to a broker.... otherwise you will get to the point when you are ready to apply only to find out that you should have done this or that 6 months ago.

[Ill Be Back]

Originally Posted by JamesNorth101

It’s not the estate agent that you need to really worry about. They don’t have anything to do with mortgages they just show you the homes

No one would report you to the NCA though.

You should look at starting a limited company, employing yourself through it. Take the maximum you can as tax free allowence and then £20,000 or so per year on top of that as dividends (means you don’t have to pay NI that way)

Your going to struggle to get a mortgage without any employment history for the last few years though. Or are you buying for cash?

Hi James, so the maximum tax free allowance as of 2020 is £732.00. With the dividends do I take it out as a lump sum at the end of the year or can this be spread?

[james_112233]

Originally Posted by phaz0rz

Wow. Even if you've got the cash in hand they want you to prove where it came from when you're buying a home in UK? No wonder all the Saudis come to USA to hide cash in "investment properties". No questions asked over here.

(Sorry I don't have more to contribute - thought the thread was an interesting topic)

The Saudi's have bought up half of London.

When you got money you can buy what you need to "prove" where it's come from.

What the OP needs to do is go find the equivalent of Saul Goodman in his town and ask for advice 1 to 1. Not on a public forum.

[Hank]

^^^ this is a two year old thread only bumped by a serial spammer.

[james_112233]

Originally Posted by Hank

^^^ this is a two year old thread only bumped by a serial spammer.

Never the less an interesting read as I missed it the first time round.

[rsot]

Originally Posted by james_112233

Never the less an interesting read as I missed it the first time round.

Too true props

[rsot]

Originally Posted by UmonySleev

You can't equate someone else's life situation with yourself.

Welcome to the forum - all the best as you master stealth

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