Newly self employed wanting to move house?!

kprice580

Hi all & good morning,

My hubby has only been self employed for 8 months and we are concidering moving closer to his business to help cut costs, the thing is we've contacted our mortgage lender and they said thet we need '2 years worth of accounts books' to show income! I had my heart set on moving but this has put a real downer on us .

Is there any way we can get round this or is it standard practice for every lender ???


PLEASE HELP!!!

Thanks Katy x x

koexelek

You could look at a self certification mortgage ( where you don't have to show proof of income).... but they are getting few and far between then, and even then , most companies need you to have been trading for at least a year. Maximum 75% loan to value at best though

Conrad

A couple of lenders will accept an Accountants certificate to cover 6 months income. An individual can discuss with the Accountant what profit ought to be declared. For example you dont have to put down certain element as expense, such as use of home office unless you want to, which has the effect of increasing net income.

Obviously you need to be sure the payments are affordable and the income stated is realistic.
This can be a cheaper alternative to self cert, and in any event self cert lenders are often asking for Bank statements and so on now.

Robert_Sterling_3

How far is it from your home to your place of work?

kprice580

Hi and thanks for your replies.

Reply to Robert_Sterling:
We live in Doncaster and the business is in Sheffield, you might say it's not that far and I agree, but he has to go in a large van everyday at a cost of £80-£100pw just for diesil, more when he has collections & deliverys to do!
He has on occasions taken my car but then I have no transport to go anywhere (like today!)
We have weighed up everything to come to the conclusion to move and feel this would be best. If we did move we would have a smaller mortgage due to equity in our current house, and outgoings due to the close location to the business.

I just hope there is a solution out there to help us.

Katy x x

kprice580

koexelek wrote: »

You could look at a self certification mortgage ( where you don't have to show proof of income).... but they are getting few and far between then, and even then , most companies need you to have been trading for at least a year. Maximum 75% loan to value at best though

Thank you koexelek:T

Who would you recommend us to contact for more information??

Katy x x

littlened

I've just mentioned on another post, we got turned down for a mortgage from Abbey because I couldn't provide 3 years accounts, or at least 2 years accounts and an accountants projection for this financial year.

You 'may' be able to find someone to accept you and give you a mortgage, but sadly, I wouldn't get my hopes up.

betmunch

With 8 months accounts and a decent chunk of equity you have a chance. I would get to an office of a local mortgage broker ASAP.

Koexelek is right, the mortgage you need is becoming rarer and rarer!

Good luck with it

littlened

Forgot to mention, we did get offered a mortgage, can't remember who it was through, but we needed 20% deposit, and the arrangement fees were around £2000, and we couldn't add them onto the mortgage.