Additional Loan for Mortgage holder with Abbey failed!
Discussion
Well here is the situation - I started my company in Aug08 and clearly do not have a full years worth of accounts.
Now I hadnt envisaged this to be any issue at all but I had planned to incease my borrowings on my property (significant LTV). However due to the fact I am self employed and dont have 1 years accounts they will not lend me a penny additional - they stated they would only take my partners income into consideration which is a teachers wage so 5k odd over ave sal and miles too little for the total current mortgage & the extra pot I required.
I moved into being self employed as the salary & flexability & experiance it would give me. When I first applied for my mortgage I was earning 4-5 times less salary than now but if I had monthly payslips for that it would be adequate for the borrowings I required.
So what are the options?
I got passed onto unsecurred personal loans to be greated by a 9.4% (when the mortgage on SVR is 5.44%) and that appears to be no issue at all - oddly they just asked what do I pay myself in divi's/envisage the divi's to be (working it out on an equivalent monthly position). No proof required!!!
Since I started my comp I have not taken a penny in PAYE due to the fact I had significant earnings Apr-Jul in the Perm role which more than covered the NI aspect so purely paying myself divi's until the end of this tax year then next tax year taking the min wage & divi's.
I have just thought about paying myself the full wage (divi) per PAYE for 3 months and then supply that proof to the bank and as soon as its approved revert back to divi format. Now is this a realistic option?
Other routes I guess are super balance transfers which allow bal tfr to your current account but these are thin on the ground.
Maybe the new car I had planned for early next year is now canned until Sept09!!!!
Help required.
Note - Currently the Mortgage is split into 2 parts 80:20 and the 80% is currently on the SVR so no early redemption fees and the other 20% is on interest only BoE rate tracker until Oct09 (under BoE rate) early redemption fees would apply.
Now I hadnt envisaged this to be any issue at all but I had planned to incease my borrowings on my property (significant LTV). However due to the fact I am self employed and dont have 1 years accounts they will not lend me a penny additional - they stated they would only take my partners income into consideration which is a teachers wage so 5k odd over ave sal and miles too little for the total current mortgage & the extra pot I required.
I moved into being self employed as the salary & flexability & experiance it would give me. When I first applied for my mortgage I was earning 4-5 times less salary than now but if I had monthly payslips for that it would be adequate for the borrowings I required.
So what are the options?
I got passed onto unsecurred personal loans to be greated by a 9.4% (when the mortgage on SVR is 5.44%) and that appears to be no issue at all - oddly they just asked what do I pay myself in divi's/envisage the divi's to be (working it out on an equivalent monthly position). No proof required!!!
Since I started my comp I have not taken a penny in PAYE due to the fact I had significant earnings Apr-Jul in the Perm role which more than covered the NI aspect so purely paying myself divi's until the end of this tax year then next tax year taking the min wage & divi's.
I have just thought about paying myself the full wage (divi) per PAYE for 3 months and then supply that proof to the bank and as soon as its approved revert back to divi format. Now is this a realistic option?
Other routes I guess are super balance transfers which allow bal tfr to your current account but these are thin on the ground.
Maybe the new car I had planned for early next year is now canned until Sept09!!!!
Help required.
Note - Currently the Mortgage is split into 2 parts 80:20 and the 80% is currently on the SVR so no early redemption fees and the other 20% is on interest only BoE rate tracker until Oct09 (under BoE rate) early redemption fees would apply.
Eric Mc said:
You're not self employed for a start.
I am outside IR35 I can have multiple contracts running concurrently.Should I simply state to them that I am a contractor - in which case I could simply give the daily rate/annualised Gross Sal??
Also IF you have to give annualised salary what is the norm you clearly have to deduct bank holidays (unless they pay your company) and then whats the general concensus with amount of leave?
Did I mention IR35?
As a director of your own limited company you are most defintely NOT classified as being self-employed.
Tell them exactly what you are, that you are a director of a limited company.
Does the company pay you a salary through the PAYE system?
Does the company pay you dividends?
As a director of your own limited company you are most defintely NOT classified as being self-employed.
Tell them exactly what you are, that you are a director of a limited company.
Does the company pay you a salary through the PAYE system?
Does the company pay you dividends?
Eric Mc said:
Did I mention IR35?
As a director of your own limited company you are most defintely NOT classified as being self-employed.
Tell them exactly what you are, that you are a director of a limited company.
Does the company pay you a salary through the PAYE system?
Does the company pay you dividends?
Yes I am the sole director and I pay myself dividends, I have opted for no salary from Aug08 to Apr4th09 due to the fact I have more than paid enough NI in the old role but will start again on min wage set up in Apr09.As a director of your own limited company you are most defintely NOT classified as being self-employed.
Tell them exactly what you are, that you are a director of a limited company.
Does the company pay you a salary through the PAYE system?
Does the company pay you dividends?
Eric Mc said:
Did I mention IR35?
As a director of your own limited company you are most defintely NOT classified as being self-employed.
Tell them exactly what you are, that you are a director of a limited company.
Does the company pay you a salary through the PAYE system?
Does the company pay you dividends?
So when they ask me what I do for a living I state x job, then when they ask what salary what should I state? Just my daily rate?As a director of your own limited company you are most defintely NOT classified as being self-employed.
Tell them exactly what you are, that you are a director of a limited company.
Does the company pay you a salary through the PAYE system?
Does the company pay you dividends?
Welshbeef said:
Eric Mc said:
Does your own company pay you a salary?
I decided not to until Apr09 due to the fact I have more than paid the min NI Apr-Jul08 in my perm role.I could easily start paying myself a wage if necessary to get around this issue. Do you suggest that and if so why?
Thanks
Exactly.
As the director of your own company you are in pretty much complete control (subject to tax and company law regulations ) of the income you can derive from your company. And you can chose how much to pay in salary and how much to pay in dividends.
Your accountant should be on the case on this.
As the director of your own company you are in pretty much complete control (subject to tax and company law regulations ) of the income you can derive from your company. And you can chose how much to pay in salary and how much to pay in dividends.
Your accountant should be on the case on this.
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