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  • FIRST POST
    • RWBLDN
    • By RWBLDN 13th Jun 17, 9:50 PM
    • 7Posts
    • 0Thanks
    RWBLDN
    Self-employed mortgage advice
    • #1
    • 13th Jun 17, 9:50 PM
    Self-employed mortgage advice 13th Jun 17 at 9:50 PM
    Hi all,

    I'm new to the forum so please be gentle.

    Just to give you a quick lowdown on my circumstances. I'm the owner/director of my own limited company and I'm still in the first year of trading. I know that most high street banks will require 2/3 years of accounts to access their mortgages so I'm keen to hear from anyone in a similar position as to what they've managed to arrange.

    Here are a few more specific details.

    - I'm a first time buyer
    - I'm a Londoner and looking to spend around £475k for a 2 bed flat
    - My predicted income this year will be around 65k after tax
    - I'll have 75k saved as a deposit when my 1 year trading anniversary comes around in November this year.

    Any help would be greatly appreciated.

    Rob
Page 1
    • glosoli
    • By glosoli 14th Jun 17, 12:33 AM
    • 673 Posts
    • 387 Thanks
    glosoli
    • #2
    • 14th Jun 17, 12:33 AM
    • #2
    • 14th Jun 17, 12:33 AM
    £400,000 / £65,000 (although I understand there can be variations in the way that your income can be calculated lender to lender) would be in excess of six times income, which isn't going to be achievable particularly with one year of accounts.
    • RWBLDN
    • By RWBLDN 14th Jun 17, 7:32 AM
    • 7 Posts
    • 0 Thanks
    RWBLDN
    • #3
    • 14th Jun 17, 7:32 AM
    • #3
    • 14th Jun 17, 7:32 AM
    Ah sorry, my gross income is 90-100k, i just gave my post tax for clarity.
    • amnblog
    • By amnblog 14th Jun 17, 7:58 AM
    • 10,037 Posts
    • 3,904 Thanks
    amnblog
    • #4
    • 14th Jun 17, 7:58 AM
    • #4
    • 14th Jun 17, 7:58 AM
    It's not a simple as that.

    Your profit is important, how you take your income out is important, the type of business you run is important, the number of shareholders and their shareholding is important, where the deposit is coming from is important.

    The smart thing to do would be to speak to a broker now to get an idea of how you can get positioned to achieve what you want.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • RWBLDN
    • By RWBLDN 14th Jun 17, 10:13 AM
    • 7 Posts
    • 0 Thanks
    RWBLDN
    • #5
    • 14th Jun 17, 10:13 AM
    • #5
    • 14th Jun 17, 10:13 AM
    Thanks for your reply. I have an appointment with a broker to discuss this further.
    • VFR-Rider
    • By VFR-Rider 14th Jun 17, 11:13 AM
    • 108 Posts
    • 115 Thanks
    VFR-Rider
    • #6
    • 14th Jun 17, 11:13 AM
    • #6
    • 14th Jun 17, 11:13 AM
    I may break tradition/ rules slightly.

    I was in a similar value situation (my income a little higher, house value a little more).

    One of the active brokers here (on this very thread no less) helped me beyond belief.

    Choose the broker carefully & make sure they're aware of the ins & outs of contracting.
    saving, saving, saving!
    • Potbellypig
    • By Potbellypig 14th Jun 17, 8:26 PM
    • 153 Posts
    • 68 Thanks
    Potbellypig
    • #7
    • 14th Jun 17, 8:26 PM
    • #7
    • 14th Jun 17, 8:26 PM
    Similar position here. Contractor and Director of a Ltd company which pays me a salary. Specialist contractor broker is probably your best/only bet. Speaking to 'normal' lenders over the last month or 2 and it would seem that they look at these things. How much you take out as a salary and how much you are taking out as a dividend. I've had 1 lender say that they would like at how much profit the company made, but no-one was even remotely interested in turnover.
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