Mortgages

Old Apr 26th 2011, 1:40 am
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Default Mortgages

Hi there,

First off, apologies for bringing up a subject which I know has been covered a thousand times but I have searched and not found exactly what I´m after.

I work full time and I´m looking to buy (a home, not an investment) but only have a part time employment contract. I have a 30-40% deposit but 50% of my earnings are under the table. Does anyone have experience of mortgage applications similar to this, and if so, how should I go about it? And importantly, am I likely to get investigated/in trouble for explaining this to a bank?

I don´t want to shoot myself in the foot seeking information so thought it safer to ask here first.

Any help or advice greatly appreciated.

Mike
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Old Apr 26th 2011, 3:25 am
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Default Re: Mortgages

Originally Posted by 82mph
Hi there,

First off, apologies for bringing up a subject which I know has been covered a thousand times but I have searched and not found exactly what I´m after.

I work full time and I´m looking to buy (a home, not an investment) but only have a part time employment contract. I have a 30-40% deposit but 50% of my earnings are under the table. Does anyone have experience of mortgage applications similar to this, and if so, how should I go about it? And importantly, am I likely to get investigated/in trouble for explaining this to a bank?

I don´t want to shoot myself in the foot seeking information so thought it safer to ask here first.

Any help or advice greatly appreciated.

Mike
I would think that, given the current economic climate, you'll have a problem getting a non-status mortgage.

Have you tried Halifax Hispania (now Lloyds)?
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Old Apr 26th 2011, 8:28 am
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Default Re: Mortgages

Originally Posted by 82mph
Hi there,

First off, apologies for bringing up a subject which I know has been covered a thousand times but I have searched and not found exactly what I´m after.

I work full time and I´m looking to buy (a home, not an investment) but only have a part time employment contract. I have a 30-40% deposit but 50% of my earnings are under the table. Does anyone have experience of mortgage applications similar to this, and if so, how should I go about it? And importantly, am I likely to get investigated/in trouble for explaining this to a bank?

I don´t want to shoot myself in the foot seeking information so thought it safer to ask here first.

Any help or advice greatly appreciated.

Mike
You are the 2nd person to come here asking how to fiddle the system.
Your life and you do what you do but for those doing it legit it's a bit takin' the ****.
Nothing personal
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Old Apr 26th 2011, 9:11 am
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Default Re: Mortgages

Not looking to fiddle the system. Just after advice on where I stand. Unfortunately my employer has a policy of black money payments from which I don´t benefit. What I want is a loan which I will pay back in full, as will those ´doing it legit´, not any special treatment.

The amount that I work and my earnings should be sufficient to allow me to do so, however unfortunately they fall within the norms of the place in which I work, which happen to fall outside the strictly legal framework. I´d much rather have it all straight up but this is my situation as it stands and by all accounts I am not in the minority in this way of working.

Apologies if you think I am taking the Michael, this is not my intention at all. Like many, I´m simply trying to find my way in a new system.
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Old Apr 26th 2011, 1:32 pm
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Default Re: Mortgages

I understand black money, it's part of the culture here.
The bottom line is that you and your employer don't pay tax.
You'll only get a mortgage on your declared income,they won't take black money as an income as there ¡s no way of you proving it.
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Old Apr 26th 2011, 8:47 pm
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There are so many in this situation, the government know this, and why, it is usuallly down to the exhorbitant cost of employing people, and the sums that have to be paid when the employer wants to terminate the contract of a worker, and loats of smaller companies cannot afford it.

It seems to be a "necessary evil" in Spain, of course in some cases it is just greed, where the employer wants to make more profit, by acting illegally.

The bottom line is the worker finds themselves in a position where they cannot borrow for more than the contracted hours will allow them to pay back.

It is very easy to argue that it is against the law, which it is, but, the basic reality for many is, accept the "black money" and lower SS cover or find yourself without a job.......Sad but true and more common than anyone thinks.
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Old Apr 26th 2011, 9:00 pm
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Default Re: Mortgages

It's about time they cleaned up this Black Money lark.

It hurts a very unstable economy and it is all the legit people that end up paying.
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Old Apr 26th 2011, 9:04 pm
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Default Re: Mortgages

Originally Posted by pj-snuko
It's about time they cleaned up this Black Money lark.

It hurts a very unstable economy and it is all the legit people that end up paying.
Of course the legit people end up paying, but so do the poor workers who have to accept the black money, as this thread demonstrates, no borrowing for mortgages, low pensions based on low salaries, low sick pay, etc.....
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Old Apr 26th 2011, 10:09 pm
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Default Re: Mortgages

Originally Posted by JLFS
Of course the legit people end up paying, but so do the poor workers who have to accept the black money, as this thread demonstrates, no borrowing for mortgages, low pensions based on low salaries, low sick pay, etc.....
I agree entirely, the system sucks and needs total reform.
Black money is virtually the only money round where I live and has been that way for years amongst the Spanish.
Nowadays it is nearly all immigrant labour on black money.
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Old Apr 26th 2011, 10:30 pm
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Default Re: Mortgages

Originally Posted by pj-snuko
It's about time they cleaned up this Black Money lark.

It hurts a very unstable economy and it is all the legit people that end up paying.

Absolutley but when self employed have to pay at least 270 euros a month just to go to work regardless of income and when it costs the employer around 1900 euros a month to pay an employee 1200 p.m it aint gonna happen , those pricks in Madrid dont have a clue about the real world and small business
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Old Apr 26th 2011, 11:11 pm
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Default Re: Mortgages

It's a ridiculous system (black money), with all the snags already highlighted.

I do know that in the past the banks and especially the cajas allowed for this and were flexible in their lending criteria for mortgages, but it usually involved telling lies and that's more dangerous now than it used to be.

I still wonder at the adverts in the free expat newspapers openly offering to supply all sorts of employment details. P45s, etc. etc. and all that is needed is a credit card.

And if your employment contract is only for a few hours each week, that would give you plenty of time for your well-paid other part-time job, but there shouldn't be a need for any of that.

I would advise the OP to shop around for a sensible mortgage broker.
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Old Apr 27th 2011, 12:50 am
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Default Re: Mortgages

I wouldn't want any one to think I'm a raving capitalist.
I feel for any one who has to struggle through life due to a corrupt system.
That includes many people in many ways, black money or tax payer.
I guess hard working tax payers having to rent would feel the same as the OP, it's probably more unfair to them in some ways.
Hopefully the meek will inherit the earth one day but I'm not holding my breath.
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Old Apr 27th 2011, 1:15 am
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Default Re: Mortgages

As a country, Spain would be in a far better position if it weren´t for this black money culture. However, I imagine, with so many employed/employing in this way, any clampdown would be the death of that particular government!

Thanks for all your replies.

As some have already said, employers either can´t or won´t pay legitimately (mine certainy) and in the current market I am expendable. I´ve spoken to a handful of people at work who have all said to go anonymously to all the Cajas to see what they say. If this proves fruitless, I´ll probably wait until after the dry summer months, go autonomo and build up some accounts to support my cause. I´ll lose out financially in the short term for sure but hey-ho!
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Old Apr 27th 2011, 1:50 am
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Default Re: Mortgages

Originally Posted by twistedmelon
I understand black money, it's part of the culture here.
The bottom line is that you and your employer don't pay tax.
You'll only get a mortgage on your declared income,they won't take black money as an income as there ¡s no way of you proving it.
Not entirely true - you can get what's called a 'non-status mortgage' where income does not have to be confirmed.

Yep, you'll pay more for the privilege but it's an option if you can find someone who will offer this.
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Old Apr 27th 2011, 1:55 am
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Default Re: Mortgages

Originally Posted by 82mph
id to go anonymously to all the Cajas to see what they say. If this proves fruitless, I´ll probably wait until after the dry summer months, go autonomo and build up some accounts to support my cause. I´ll lose out financially in the short term for sure but hey-ho!

When you are trawling the cajas perhaps you should ask if they would actually grant a mortgage now to an autonomo .
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