Hi guys, thought I would drop by and ask some advise, on behalf of a relative. They're going to buy a house soon, and he's worried, because of his earnings. It turns out he's a private contractor, and he has some disguised earnings, paid via a loan scheme. Now they have applied for a mortgage, given a decision in principle, however, he's submitted a payslip with less wages, than he's actually paid, as the rest of the payments, are disguised as some kind of a loan payment, into the same bank account. The issue is that the mortgage broker has now asked for them to provide bank statements and they will be able to see that he gets more money, coming in than he told the mortgage company. Will this be an issue with the mortgage company?, that he gets more than he told them? Would they want to know the source of the other income?To be honest, from my end, I told him I'm more worried about him being locked up, by the tax man, instead. Your honest advise as usual required, especially regarding the mortgage.
Getting a mortgage, as a private contractor?
- Thread starter tsobo
- Start date
But how do people manage it in the first place? Do employers not check on this?
Oh OK thanks. So they won't bother about the rest?
Yes I agree, totally. Was quite surprised, actually that this is even possible, especially when someone works in a professional job.
Should I post my returns , I get stung over and over , by the taxman.
Thanks for the positive response, my thoughts as well. In fact them loans, are probably the bulk of the deposit.
I agree, I don't understand though why these loop holes exist in the first place.