How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Rakhi Vasavada Your Own Question
Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4545
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
43581946
Type Your Finance Question Here...
Rakhi Vasavada is online now

My partner and I are planning to buy a property together and

Customer Question

Hello,My partner and I are planning to buy a property together and we will need to apply for a joint repayment mortgage. We have made initial enquiries prior to applying for a mortgage and are in the process of gathering information so that we can confirm to the mortgage lender details of our income and outgoings. We have also been advised to complete our own monthly budget - planner, which we think will be very useful.My partner is self-employed and we are concerned because we will need to provide the mortgage lender with details as to exactly what his annual income is. This is difficult because, although we know that he will be able to afford his share of the monthly mortgage payments, my partner's income varies all of the time. For example, he can confirm what his gross annual income was for the last tax year, but this will differ from what his gross annual income was for the previous tax year.Also, for the purposes of our completing our own monthly budget -planner, which we would like to do, we need to know what my partner's net annual and monthly income figure is. This is difficult because my partner's Tax and N.I. contributions again vary and he is unsure as to how much Tax and N.I. he paid during the last tax year. I think we should contact my partner's accountant but we are unsure exactly what information we should ask for.I would be very grateful for any advice that you may be able to offer?Thank you and best wishes,Lucy
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

I understand your problem and it is very much peculiar to what all people who are self employed face. Being self employed, it is obvious that your income shall vary. To tackle this problem, all the lenders that AVERAGE of last to years. You too need to do the same.

While dealing with your partner's accountant, you will have to take income of last 3 to 4 years and take the average of this to make your monthly budget. This will help you a lot and go a long way in preparing the budget as well.

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards,

Rakhi Vasavada and other Finance Specialists are ready to help you
Customer: replied 1 year ago.
Hello Rakhi,Thank you very much for your help and I have accepted your offer of further Q & A time, with thanks.I wonder if you could please advise me as to the following query... My partner is able to provide from his accounts an average figure for his gross income over the last 3-4 years at £45,000 - £50,000, but his average net income over that same period would be virtually zero. How would we be able to factor this in when completing a budget planner which requires us to provide a net monthly income figure?Many thanks and best wishes,Lucy
Customer: replied 1 year ago.
Hello Rakhi,
Thank you for your help and I have accepted your offer of further Q&A time with thanks.I wonder if you could please advise me as to the following query... My partner is able to provide from his accounts
an average figure for his gross income over the last 3-4 years at £45,000-£50,000, but his average net income over the
same period would be zero or virtually zero. How would we be able to factor this in when completing a budget planner which
requires us to provide a net monthly figure ?
Many thanks and best wishes,
Lucy
Expert:  Rakhi Vasavada replied 1 year ago.

Hi Lucy,

Hello and welcome. Thank you for your follow up response.

To begin with, WHY is the net income zero ? You will have to concentrate on that area first. If the net income is zero due to heavy depreciation expense, or due to making provisioning, it should be added back.

Can you please throw some light on this ?

Warm Regards,

Customer: replied 1 year ago.
Hello,
The net income is at zero because of expenses of cost of goods purchased for resale or goods used.
Best wishes Lucy
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Lucy,

Hello again.

This can be a little problem for you because this implies that after applying COG, either your partner is not making profits or incurring a loss on the business he does.

There are also some chances that the accounts are not properly perpared or if prepared not properly interpreted.

I would strongly recommend you seeing your partner's accountant and letting her / him know your purpose. He will help you out in best possible way.

Hope this helps. Feel absolutely free to continue the conversation.

Warm Regards,

Customer: replied 1 year ago.
Thank you very much Rakhi for your help. We will contact my partner's accountant.
Please rest assured that I will now send a top rating for you.
Many thanks and best wishes,
Lucy
Expert:  Rakhi Vasavada replied 1 year ago.

Thank you Lucy for your kind words and appreciation.

Feel free to get back to me at any moment when you need.

It was total pleasure interacting with you.

Warm Regards,