Transfer of mortgage..help...

Being self-employed is actually a positive thing, because it allows you some level of flexibility when it comes to working out your profit subject to tax. Without knowing your circumstances, I wonder if you could be a bit less tax efficient and report higher income, so you could get £34k mortgage?

While I realise that the 16/17 reporting had to be done by 31 Jan 2018, it is possible to go back and modify the figure. If you could then also prepare the 17/18 tax return in Apr, i.e. in a few weeks' time with a higher figure, then you could potentially apply for a mortgage with increased chances.

There are lenders who only use latest year income, but the underwriters have discretion to decline a case, if they don't see sustainability. So if your reported income is sub-£10k for years and suddenly there's a big jump, it doesn't guarantee a mortgage with lenders who use latest year figure.

If you have credit commitments, they may also need to be cleared in order to get the mortgage, so perhaps consider selling your car and getting a cheaper one. Of course, I don't know your circumstances, so just thinking out loud.

Finally, your best option may not be the existing lender, so it'd be worth reviewing your situation with a broker and applying for a mortgage accordingly. So yes, selling the property is one option, but I'd also recommend reviewing your own financial situation to see what could be done.