Please could you possibly help me out with a current mortgage application that we have on going.
My partner and I are both first time buyers with 2 children and have had a decision in principle. When applying, we put across both salaries.
Me £1061pm take home. Just increased to (£1368.22) take home
Partner £550pm take home Part Time
Tax credits £275pm
I have the mortgage adviser coming in two days to collect all our information such as bank statements, payslips etc.
I have in the past few days been given a salary increase by my employer which has risen by £5000 per year. I have informed the mortgage company and tax credits of this and they have said they will take this into account. I have been given a letter from my employer stating that from the start of the month I would be receiving the extra. I will also have a my payslips showing this going forward. If they contact HMRC they should be able to see this, but it has only just been changed but wouldn't be a problem as it will all be confirmed and above board with them.
I have been asked for my last 6 months bank statements, but these show more money in my account than i can account for.
For example my elderly mum was putting her savings aside and keeping it in her house as she doesn't have a bank account, so I created a saving account in my bank and put it in there for her. It shows £3300 of her money coming into my bank in march. Will they ask what this is??
Also my employer use to rent us a house but had to sell about a year ago, we use to pay a £350 rent for this property, but when he sold, he agreed for us to find a house and he would make up the short fall. Since then he has been paying us an extra £350 per month into my account. But the payments wasn't monthly at times he would deposit like £2000 into my account that would cover 6 months rent. I didn't pay tax on this as it wasn't part of my wage or anything like that. Will the underwriter ask why I have £2000 coming in at times and what its for? Will they also contact HRMC about this? As I believe it not to be taxable.
I have also been doing some freelance website developing work on the internet, where I get paid for web development work through paypal. so at times in the months I have £550 coming from pay pay. I think a couple of the months i have about £1500 coming from pay pal and another about £1750 from paypal. Will these be questioned by the underwriter and again passed to HMRC?
For example in the month of March i think i had about £8500 coming in to my bank account as my mum paid in her £3300 my payment paid £2000 to cover our 6 months rent and we had our salaries and tax credits and maybe a payment from pay pal.
Will HRMC be informed of what I have in my bank account and also the amounts, as the freelance work hasn't had tax paid on it as I haven't done it much just 3 or 4 times. Its not a regular thing or income.
I know that HMRC will need to be contacted as I have only just had the pay increase and won't have 3 payslips or the amounts showing on my bank stamens to confirm the increase. But will they question the large deposits and inform this to HMRC?
To me everything looks very suspicious, but I can account for all money apart from the paypal as there has been no tax paid on some of the paypal payments.