[david wood]

  lmao

[Ian_Giles]

The problem with being self employed in the manner that we as window cleaners are, is that we submit our accounts to the tax man with the intention of showing our taxable income to be as low as possible, and it doesn't matter if you are using an accountant or not, as they are doing exactly the same thing for you.

Whereas when you want a mortgage you want your accounts to show exactly the opposite
I'm afraid you can't have your cake and eat it too!

Ian

[pingu]

That was my thinking in the respect of being able to show regular periodic growth combined with 'sensible' money management.

Dave.

[Neil271052]

The problem with being self employed in the manner that we as window cleaners are, is that we submit our accounts to the tax man with the intention of showing our taxable income to be as low as possible, and it doesn't matter if you are using an accountant or not, as they are doing exactly the same thing for you.

Whereas when you want a mortgage you want your accounts to show exactly the opposite
I'm afraid you can't have your cake and eat it too!

Ian

Exactly right.

If you are a sub prime buyer or self certificated you will not get the best rates and will pay through the nose which will cost you many thousands more over time.

Lenders are also tightening up now after the Northern Rock fiasco.

[*foxman]

If you run your own company just go on the books yourself for 3 months and keep the pay slips. You'll have to pay your tax, NI, etc upfront but you've got to do it anyway in the long run - once you've got around 3 months payslips it should be pretty easy to get a mortgage - all they want to see is that you've got money coming in to pay for your loan. Once it's gone through go back to being self em!

[nat]

The problem with being self employed in the manner that we as window cleaners are, is that we submit our accounts to the tax man with the intention of showing our taxable income to be as low as possible, and it doesn't matter if you are using an accountant or not, as they are doing exactly the same thing for you.

Whereas when you want a mortgage you want your accounts to show exactly the opposite
I'm afraid you can't have your cake and eat it too!

Ian

Exactly right.

If you are a sub prime buyer or self certificated you will not get the best rates and will pay through the nose which will cost you many thousands more over time.

its only over the first 2 years while you get yourself on the ladder. once you have equity and history you can get the best rates possible.

It is a vicious circle. it took me a while to get on the ladder being self emploted. but once i got my hands on my 10% and made the plunge it got easier.

at least we should be in the position we we could afford a hefty mortgage bill. more so than a general factory or shop worker

[simon knight]

With the money you guys are supposed to earning I'm surprised you need mortgages

[nat]

exactly simon....i've bought 10 houses out right

i wish. 

[simon knight]

If I didn't have a mortgage and a 15yr old daughter and a wife who spends like it's going out of fashion I'd have a very nice way of life

[matt]

With the money you guys are supposed to earning I'm surprised you need mortgages

i was a little short, i only had 900 K in cash, i had to borrow 50 K from the bank

i should be able to pay that off in a few weeks if it doesnt rain 

[nat]

If I didn't have a mortgage and a 15yr old daughter and a wife who spends like it's going out of fashion I'd have a very nice way of life

a fact of life i'm afraid. I'm in that position but add a son into the equasion as well

[simon knight]

Ouch!

[nat]

like being burnt with a red hot poker every day 

[simon knight]

Tell me about it.  Anyway I'm off to do some more graft....ciao!

[Helen]

If you run your own company just go on the books yourself for 3 months and keep the pay slips. You'll have to pay your tax, NI, etc upfront but you've got to do it anyway in the long run - once you've got around 3 months payslips it should be pretty easy to get a mortgage - all they want to see is that you've got money coming in to pay for your loan. Once it's gone through go back to being self em!

why
If you only have 3 months payslips most lenders will require employment history for up to 3 years previously. Also, don't think that they would go with this way of proving income as you would be giving fraudulent information to acquire credit and that is a no no!
If you have had a longstanding bank account. speak to that bank first.....they are now competitive with  mortgage rates and if you have shown a steady income with them, that will stand you in good stead. Usually 3 years audited accounts are required for Self employed, but again if you go to your main bank they may just be able to bend their rules a bit. Self Certified, keep away unless you have 25% deposit or more, the rates will be more and the deals available less.
Sort out in your own mind what you can afford on monthly mortage payments, and be realistic. look for a good fixed rate that achieves that amount, if possible get a fixed rate for 3 or more years, but watch out for transfrability and penalty clauses. Your own bank probably has a mortgage consultant, speak to them, the advise will be free!

[Neil271052]

The problem with being self employed in the manner that we as window cleaners are, is that we submit our accounts to the tax man with the intention of showing our taxable income to be as low as possible, and it doesn't matter if you are using an accountant or not, as they are doing exactly the same thing for you.

Whereas when you want a mortgage you want your accounts to show exactly the opposite
I'm afraid you can't have your cake and eat it too!

Ian

Exactly right.

If you are a sub prime buyer or self certificated you will not get the best rates and will pay through the nose which will cost you many thousands more over time.

its only over the first 2 years while you get yourself on the ladder. once you have equity and history you can get the best rates possible.

It is a vicious circle. it took me a while to get on the ladder being self emploted. but once i got my hands on my 10% and made the plunge it got easier.

at least we should be in the position we we could afford a hefty mortgage bill. more so than a general factory or shop worker

That is a good point.

All the time that property was going up in price weekly  that was perfectly possible.

With property prices stagnating and in many places actually falling  people who bought  at the top of the market could actually be in negative equity in two years when they want to change to a new mortgage 

[nat]

The problem with being self employed in the manner that we as window cleaners are, is that we submit our accounts to the tax man with the intention of showing our taxable income to be as low as possible, and it doesn't matter if you are using an accountant or not, as they are doing exactly the same thing for you.

Whereas when you want a mortgage you want your accounts to show exactly the opposite
I'm afraid you can't have your cake and eat it too!

Ian

its all specualtation in regards to where we will be in 2 years...we will see i guess

Exactly right.

If you are a sub prime buyer or self certificated you will not get the best rates and will pay through the nose which will cost you many thousands more over time.

its only over the first 2 years while you get yourself on the ladder. once you have equity and history you can get the best rates possible.

It is a vicious circle. it took me a while to get on the ladder being self emploted. but once i got my hands on my 10% and made the plunge it got easier.

at least we should be in the position we we could afford a hefty mortgage bill. more so than a general factory or shop worker

That is a good point.

All the time that property was going up in price weekly  that was perfectly possible.

With property prices stagnating and in many places actually falling  people who bought  at the top of the market could actually be in negative equity in two years when they want to change to a new mortgage 

[Helen]

why
If you only have 3 months payslips most lenders will require employment history for up to 3 years previously. Also, don't think that they would go with this way of proving income as you would be giving fraudulent information to acquire credit and that is a no no!

Helen,

I haven't heard one lender who has asked for 3 years employment history. There is nothing fraudulent about it, if you go on the books and pay your tax it is totally legit! I know at least five people who have done the above with no problems - the bank ask for bank statements as well to make sure the money is going in etc - I think your confusing it with lieing about how much you earn 

No there is no confusion here. You are either self employed or employed, if you are LTD then you will be on the books so to speak. so no problem with proving income. What I am saying is that if you have ONLY 3 payslips which relate to the 3 previous months, the lenders will want proof of employment which will include proof of income aswell for up to the last 3 years. In some cases they will require emloyers written confirmation aswell. The terms differ from lender to lender and will also be dependant on the loan to value % mortgage requirement. I can only presume that the 5 you know who have done it this way had a large % deposit, which then reduces the requirements the lenders will ask for. That's why I said speak to the Mortgage consultant in your own bank, or even one based in an Estate Agency, they normally give free advise, you don't have to go with their mortgages offered, but you can glean alot of information from them and then be more confident to approach other lenders by yourself

[Paul Coleman]

exactly simon....i've bought 10 houses out right

i wish. 

Me too.
I put 2 on Whitechapel road, 3 on Pall Mall, 3 on The Strand and 2 on Regent Street.
No hotels yet though.

[twt]

i just showed my mortgage company three years of tax return calculations from the inland robbers revenue and that was all i needed because the could see how much i was being taxed on so they knew how much i was earning.