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Mortgage for self employed

Mortgage for self employed

A self-employed wants to apply for mortgages, he does not have last two year profits to show as such required.  He has deposit £50,000 which he got out of the sale of property from other country. What should he needs to show to lenders to have his mortgage?  Can he pay himself so that he can show payslips to the lenders or there is any other way out to have mortgage in this scenario?  

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29th Feb 2016 16:06

Please refrain from asking the same question in a different way. It just wastes peoples time.

No, a self employed person cannot employ themselves.

The lending criteria will change from lender to lender. Your client should:-

Engage a mortgage broker that specialises in mortgages for the self-employed.Engage a competent accountant instead of the dimwit they are currently using.  

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29th Feb 2016 16:07

I think I know the answer to this, but I will ask it anyway:

Do you mean that his accounts for the last two years:

have not yet been prepared?have been prepared but he has lost them and can't obtain copies?have been prepared, and are in his possession, but show lower profits than his lenders need to support what he wants to borrow? 

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By Tarique
29th Feb 2016 16:10

Your assumptions are all correct, but what is the solution?

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29th Feb 2016 16:14

You already know

Tarique wrote:

Your assumptions are all correct, but what is the solution?

 

Just stick him on the payroll. Ensure his salary is £200k per annum. Of course, the business won't pay him that. We just need a payslip or two for the mortgage lender.

 

Come to think of it, there's a phrase for that. Ah yes, mortgage fraud. That's the one.

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29th Feb 2016 16:18

All correct?

Tarique wrote:

Your assumptions are all correct, but what is the solution?

Assuming you mean john's assumptions, he listed three mutually exclusive scenarios, so they can't all be correct.

If you want sensible answers, you really need to start by providing sensible information. A solution based on guesswork is more than likely to be wrong.

EDIT : Beaten to it by john. As he says, there may not be a solution. There is a reason why a mortgage company won't lend to someone who doesn't appear to have the income to pay them back.

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29th Feb 2016 16:15

If you are referring to my post, my "assumptions" can't all be correct as they are mutually exclusive.

If it is my third scenario that is correct, there is no solution unless the accounts are wrong. Many problems do not have a solution. Life is like that sometimes.

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29th Feb 2016 16:15

I think the solution is, as it so often is, to hire an accountant instead of posting barely intelligible questions on the internet.

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By Glennzy
29th Feb 2016 16:25

Sub Prime

Tarique.

Back in the day there used to be loan products called "self cert mortgages" where self employed people who couldn't prove they had sufficient earnings to pay their loans simply said they did and got a loan at higher than market interest rates.

How these were ever allowed is beyond me but as its almost an open admission of tax evasion and if I worked at HMRC I would have asked all the banks for a list of loans sanctioned on this basis, then spent some time bringing these people to justice.

These loans were largely responsible for the global banking meltdown and as such I imagine are no longer available.

If clients come to you with crap like this, common sense should tell you not to get involved.

If something smells fishy its usually because it is.

 

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29th Feb 2016 17:15

Bit like "Jaws"

Just when you thought it was safe to go back in the water

https://www.selfcert.co.uk/

Is it me or, do some of the enquiries on AWeb, become more and more incoherent?

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By Tarique
29th Feb 2016 18:25

Any way out?

Any way out for my client how he can apply for mortgage under the above given situation

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29th Feb 2016 18:39

He can apply for a mortgage at any time.

Whether he will be accepted is another matter.

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By Tarique
29th Feb 2016 18:43

Success

Every one love success

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By Tarique
29th Feb 2016 18:50

what is the normal practice?

How the practice of mortgage applications nowadays?

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29th Feb 2016 19:06

Process
Just bung the banker a few quid to get the application processed.

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By kealy
29th Feb 2016 20:13

Tarique
Your income has to be able to be verifiable. As Glenzy said there are no uk lenders that will entertain self cert. Automated Income Verification is used by a couple of the main high street lenders, so lying/over inflating your income is not an option. From what you have said, I don't really understand what the situation is, or why it can't be remedied by pulling some accounts together. If you can provide a bit more information I might be able to help. What industry? If it is construction, for example, a couple of lenders will treat them as employees and only ask for cis deduction statements. If your client has become self employed in an industry which he had previously been employed, again there are a couple of niche lenders which might help. The biggest challenge that from what you have posted so far is that you are pissingp*ssing in the wind.

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29th Feb 2016 21:06

Tarique

If you are in practice it's time to give up.

 

Your questions are a bit like Bradley Wiggins asking which way does he point his bike to go forward

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