Hi, my wife and I would like to by our first house together as we are sick of paying rent! I'm self employed and only have my first years accounts (which show a loss) i'll have my second years accounts in April which should show a profit of around £25,000. My wife is employed and on a salery of £17,000.

My question is, if I were to employ my wife (as she does a lot of work for me already, bookkeeping etc) give her a permanent contract and a salery of say £14,000. Could she then apply for a mortgage _base_d on the combined salery of £31,000??

We're looking to buy a house worth £125,000 and have £20,000 - £25,000 deposit.

To be assessed for a mortgage having two years of accounts is a definite requirement, if you say that your second set of accounts will show net profits in the region of £25,000 and your partner has a salary of £17,000 then your affordability should stack-up for a purchase of £125K (depending on your other outgoings), espacially with a £25K deposit come April.

In answer to your question I wouldn't recommend your approach of putting your wife on payroll, for one she'll be paying more tax and NI, and so will your employer contributions to NI. Furthermore the mortgage lenders will see right through it.

Best advice is to hold out until April, try to increase your deposit from now until then and you should be in a stronger position.

Steve Wentworth
Wentworth Financial Services
Check our site for low mortgage rates

Hello,
Thanks for all the information. Me and my family is thinking of relocating to California because of my studies. So i just want to know that is there is any house on rent or any house that i can buy.
Please help me.

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Totally agree with you..!!
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