Only income that you pay tax on will be used on a mortgage application, so mortgages for people who get cash payments may be problematical.
If you work in hospitality, as long as the payments go through an HMRC approved Tronc system, lenders will treat this as commission income.
Lenders will scrutinise your bank statements, so wherever possible pay your cash earnings into your bank account on a regular basis. This establishes a track record of regular earnings.
Enlist the help of your accountant or your employer’s accountant to help verify that you are a UK taxpayer. Ensure you keep records of income, expenses, payslips and tax payments.
Another factor to consider is your credit score. If you make payments in cash rather than by direct debit, this means that you may be deemed to have no credit history. Even if you have paid every bill in cash on time and have no arrears or missed payments. you may wish to switch to making bill payments by direct debit to establish a credit history.
Mortgages for people who get cash payments can often be complex. It is likely you need help to get approval from specialist lenders.
We specialise in this area, so would encourage you to speak to one of the The Team just to see what your options are before progressing too far with an application. This will ensure you get a smooth experience when applying for your mortgage.
A fee of up to 1% of the mortgage amount may be charged depending on your circumstances (ie. £1000 on a £100,000 mortgage). A typical fee is £495 plus we will receive commission from the lender.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Rose Capital Partners Ltd is an appointed representative of PRIMIS Mortgage Network, a trading name of Advance Mortgage Funding Limited which is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy-to-Let. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. Rose Capital Partners Ltd. Registration No. 08843654 registered in England and Wales. Registered Address, Leigh Saxton Green, Clearwater House, 4-7 Manchester Street, London W1U 3AE.