Mortgages

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Frogmella
Posts: 220
Joined: Mon May 30, 2011 2:44 pm
Location: Towcester

The system has gone from one extreme to the other.

Recently we had to remortgage because our interest only (liar loan) expired.

We only wanted 15% loan to value, we applied for a 10 year fixed interest loan from Nationwide, the payments were to be roughly a third of the amount we had paid monthly for the last ten years. My missus has been with them for 40 years, had £75k on deposit with them (from the endowment policy we took out to pay off the liar loan) and still they turned us down - apparently because we failed the stress test they apply for when interest rates rise (remember it was supposed to be a fixed interest mortgage). In the end we had to take out an Equity release deal where the interest rate was four times higher than the amount Nationwide said we couldn't afford.

Crazy world.
kerberus
Posts: 366
Joined: Mon Aug 05, 2013 3:28 pm

Ouch. :roll:
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ShaunWhite
Posts: 9731
Joined: Sat Sep 03, 2016 3:42 am

LinusP wrote:
Thu Mar 16, 2017 7:40 pm

Agreed it is not illegal but setting up a front company is a money laundering process so you are only going to put more focus on yourself and the application.

In this example you also still have the issue of both accounts being screened in order to get a mortgage so there will still be deposits from betfair/paypal which then get paid to the spouse which will inevitably raise questions.
It's not laundering. It's money dirtying if anything. And only ONE account is scrutinised if it's a sole applicant. Even mortgage companies don't look at your company's customer list or their bank accounts. Anyway, you're probably better off talking to your accountant about this rather than looking for advice here. Bottom line is that you're going to have to 'launder' your dirty trading money somehow, a quick spin on the 'delicates' cycle is all that's necessary.

EyePeaSee - You're right about the divi's I had the same issue when i was a contractor.
LinusP
Posts: 1871
Joined: Mon Jul 02, 2012 10:45 pm

ShaunWhite wrote:
Fri Mar 17, 2017 6:08 pm
LinusP wrote:
Thu Mar 16, 2017 7:40 pm

Agreed it is not illegal but setting up a front company is a money laundering process so you are only going to put more focus on yourself and the application.

In this example you also still have the issue of both accounts being screened in order to get a mortgage so there will still be deposits from betfair/paypal which then get paid to the spouse which will inevitably raise questions.
It's not laundering. It's money dirtying if anything. And only ONE account is scrutinised if it's a sole applicant. Even mortgage companies don't look at your company's customer list or their bank accounts. Anyway, you're probably better off talking to your accountant about this rather than looking for advice here. Bottom line is that you're going to have to 'launder' your dirty trading money somehow, a quick spin on the 'delicates' cycle is all that's necessary.

EyePeaSee - You're right about the divi's I had the same issue when i was a contractor.
You are contradicting yourself in that first paragraph.
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ShaunWhite
Posts: 9731
Joined: Sat Sep 03, 2016 3:42 am

LinusP wrote:
Fri Mar 17, 2017 6:13 pm
ShaunWhite wrote:
Fri Mar 17, 2017 6:08 pm
LinusP wrote:
Thu Mar 16, 2017 7:40 pm

Agreed it is not illegal but setting up a front company is a money laundering process so you are only going to put more focus on yourself and the application.

In this example you also still have the issue of both accounts being screened in order to get a mortgage so there will still be deposits from betfair/paypal which then get paid to the spouse which will inevitably raise questions.
It's not laundering. It's money dirtying if anything. And only ONE account is scrutinised if it's a sole applicant. Even mortgage companies don't look at your company's customer list or their bank accounts. Anyway, you're probably better off talking to your accountant about this rather than looking for advice here. Bottom line is that you're going to have to 'launder' your dirty trading money somehow, a quick spin on the 'delicates' cycle is all that's necessary.

EyePeaSee - You're right about the divi's I had the same issue when i was a contractor.
You are contradicting yourself in that first paragraph.
It's sarcasm not contradiction. Most self employed people need to balance what's visible and what isn't, trading is just another cash-in-hand business.
You could always declare yourself to be a financial exchange trader (rather than a gambler) with the HMRC, do your accounts, pay your taxes and have a much more acceptable form of income. Any decent accountant should be able to sort the mortgage issue out. Rules are there to be exploited rather than broken. I'm no expert (clearly) because I don't have or want a mortage.
LinusP
Posts: 1871
Joined: Mon Jul 02, 2012 10:45 pm

Quick update as I moved in a few weeks ago :D

I am currently employed (at the moment) so I have an income and pay cheques to prove it so my issue was all about proof of deposit.

Process:
  • Moved to using paypal for at least 12 months before applying
  • Stopped all withdrawals from betfair 6 months before applying
  • Moved deposit into premium bonds 4 months before applying
  • Used a mortgage broker who advised on which bank to go for, ie. how many months of bank statements required (3 in my case)
  • Stated that deposit was from savings
Had no issues from the bank, only questions from friends and colleagues on how I can afford a house at my age ;) Can recommend a broker in London as well if anyone is in a similar position.
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