Self-Employed - problems?

[Deleted User] · 22 September 2009 at 11:05AM

Hello,

I'm the MD of my own small business, employing four people, and my partner and I would like to move from our current home (which is her house - and for which she has a mortgage) to a new place together.

However:

My LTD company has only been trading since May 09
I've been self-employed for three years, but my last employed PAYE was Dec 08

I am on a decent income, but because I don't have a full set of accounts, I'm assuming that most mortgages won't be available to me and that I'm going to have to go down either the self-certification route.

What can I do in the interim to make myself more attractive mortgage-wise? Some people have suggested I could draw up my accounts early to demonstrate to a mortgage lender my income. Or do I have to consign myself to the fact I'm not going to be getting a decent rate (which is infuriating, as I earn more now than I've ever done in any PAYE job before...)

koexelek · 22 September 2009 at 11:48AM

I think you are going to struggle

There are no reasonably priced self certs anymore.

I'd say your best bet is to speak to whoever you bank with. Sometimes, lenders such as Barclays will lend on account conduct , rather than proveable earned income

Conrad · 22 September 2009 at 11:52AM

There are a number of ways to approach this. You need to spend some time with an EXPERIENCED mortgage broker (not IFA), and I do mean very experienced.

Even if they have years of experience, many do not have the required knowledge. Lender reps that visit me tell me the bain of thier lives is trying to get into to see brokers as many have this notion they know everything. This results in the broker not being abreast of changes to lender criteria.

[Deleted User] · 22 September 2009 at 12:08PM

Hi Conrad - do you have any recommendations for people to talk to? I'm based down in SE Kent (near Sevenoaks).

Tatsky · 22 September 2009 at 5:33PM

Appologies for jumping on your thread, but I am in the same boat. Been self employed for 18 months, earning more money than I ever have before.

Had a meeting with Abbey, with whom I have my business bank account and they could lend me up to 300k based on income. However, I need 2 years accounts. I am 6 months short of that, so I get nothing!

It doesn't pay to be hard working and go it alone these days.

Tatsky

[Deleted User] · 23 September 2009 at 8:47AM

I'm actually very worried by all of this.

My partner desperately wants to move - our house is fine for one person, but it's too small for two and in the next couple of years we would like to get married and move house with that before prices rocket back up again (though of course, they might not!).

My work already puts a great strain on our relationship - that's what happens when you run your own business and sacrifice a guaranteed income - but I'm worried that if I'm going to be untouchable mortgage-wise until I have two years' worth of accounts then we're not going to be moving until January 2012 at the earliest....(May 09 + 2 years + 6 months for the actual process of finding and moving home).

Self-Employed - problems?

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