My employer pays me cash in hand can I get a mortgage?
Cash in hand mortgages
Getting a mortgage when you are paid in Cash in hand can be frustrating. Last time I checked the HMRC website being paid in cash is not a crime but to some Mortgage Lenders it’s like you’re from another planet. Why is this? Well in their defence the major Mortgage Banks are processing such great volumes you have to run on their tracks to a set process else you may be an unwanted applicant. In short they may simply not be bothered to understand your situation and want to move on to the next customer who’s already waiting at the checkout.
At Niche Advice we will listen. Our Advisers, including myself, are owners on the Mortgage Brokerage so it’s in our direct interest to do so. Importantly, we also have the ear of the Mortgage Lenders so can explain the whys and wherefores creating the good will to see your mortgage application over the line.
What will help my mortgage application if I’m paid in cash?
There’s no absolute answer here. It really is a conversation between you and us that needs to take place but here are some pointers:
Deposit your earnings into the bank
The nearer the amount deposited to your payslips the better. So don’t stop off the pub on the way to the bank! Go to the bank first!
Make regular deposits into the bank
The frequency of the deposits should coincide with your payday. I appreciate many cash in hand jobs are weekly so this requires an extra effort but keep focused on the bigger picture of being a home owner.
Working with a partner
If you live and work with a partner; and you are buying together: make one trip to the bank but put the earnings in separately in two transactions – this allows easy cross reference for the Mortgage Lender.
Working for family / P60s
Make sure the Accountant for the business is aware of your existence. P60s and Year-to-Date figures on payslips offer reassurance to the Mortgage Lender that UK tax is being paid.
Are cash in hand jobs consistent with the industry you work in e.g. restaurant worker, taxi driver, doorman, hairdresser etc? Are the earnings at the expected level for the occupation?
Whatever the situation you should not be excluded from a mortgage and as Niche Advice picks mortgages from the whole market if there is a solution we will present it to you.
Niche Advice offers appropriate advice to applicants paid in cash looking to get mortgages. To find out how we could help you use the Contact tab on this website or call T: 020 7993 2044.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines.