6 Months self employed any mortgages available..

Alan_Cross

If the air has now cleared itself of the whiff of sanctimonious piety, I shall (at least try to) give the OP some help.

There have been a number of lenders willing, at least in the not-too-far-distant past, to consider people in his position although usually at the cost of a premium rate.

Accord Mortgages, a subsidiary of the Yorkshire building society, was one of these and it could be they might be willing to look at your 'accountants letters'. I believe they are a lender who insists on being approached through a broker intermediary.

A further thought - you might consider whacking your tax return for 08-09 in pronto to HMRC and asking whether they could issue a statement of account for the purpose of showing to a potential lender. I know that many lenders will take a statement from HMRC as proof of income from self-employment. At least this would be something to add to the 'letters'.

It would also be worth your while, if you have a 10% deposit available now, to put aside every last red cent that you can in the time before completion such that you might have 11, 12 or 13% available at the time the transaction goes through.

opinions4u

Alan_Cross wrote: »

If the air has now cleared itself of the whiff of sanctimonious piety, I shall (at least try to) give the OP some help.

There was an implication that the circumstances described left the OP no choice but to commit an illegal act. Nothing sanctimonious or pious about clarifying the wider choices.

There have been a number of lenders willing, at least in the not-too-far-distant past, to consider people in his position although usually at the cost of a premium rate.

Accord Mortgages, a subsidiary of the Yorkshire building society, was one of these and it could be they might be willing to look at your 'accountants letters'. I believe they are a lender who insists on being approached through a broker intermediary.

A further thought - you might consider whacking your tax return for 08-09 in pronto to HMRC and asking whether they could issue a statement of account for the purpose of showing to a potential lender. I know that many lenders will take a statement from HMRC as proof of income from self-employment. At least this would be something to add to the 'letters'.

It would also be worth your while, if you have a 10% deposit available now, to put aside every last red cent that you can in the time before completion such that you might have 11, 12 or 13% available at the time the transaction goes through.

Lovely. You have clarified a course of action open to the OP. Well done.

Shakethedisease

Whatever the rights and wrongs.. I personally find it faintly ridiculous that high st lenders will only consider self-employed with 3 years books. Yet would be happy to give those they actually employ a mortgage based on 6-12 months working FOR them.
3 years is a long time to wait especially if your income is proveable, sustainable and your credit record is good. It does seem a little unfair really.

opinions4u

Shakethedisease wrote: »

Whatever the rights and wrongs.. I personally find it faintly ridiculous that high st lenders will only consider self-employed with 3 years books.

Perhaps it should be longer than 3 years.

I believe that 50% of new business start ups fail within 12 months. 90% fail within 5 years.

In a world where lenders are criticised for being reckless, would it really be right to lend to somebody who has been trading for such a short period of time?

Yet would be happy to give those they actually employ a mortgage based on 6-12 months working FOR them.

Most start ups don't employ people because they can't afford to.

95% of companies that build up a team of more than 8 staff within the first year survive the first 5 years of starting the business.

3 years is a long time to wait especially if your income is proveable, sustainable and your credit record is good. It does seem a little unfair really.

So how do you prove that it's sustainable when in the first year or so you can barely prove anything?

Alan_Cross

opinions4u wrote: »

There was an implication that the circumstances described left the OP no choice but to commit an illegal act. Nothing sanctimonious or pious about clarifying the wider choices.

Lovely. You have clarified a course of action open to the OP. Well done.

That is your interesting take on things.

I read it as being left with the choice of either commiting an illegal act or being left by the lending industry's near total inability to cope with self-employment to remain in whatever his current predicament may be.

'Having no choice' means precisely that: left without options.

silvercar

I know two people, both recently self employed, who have banked with Barclays for years and had no problem getting a remortgage with Barclays.

opinions4u

Here's what was originally posted:

... and now understand why some people lie in their application just like their CV! its wrong but some people have no choice and they do take that option to get a mortgage.

The choice in question can be interpreted as "to lie or not to lie". It could be interpreted as "wait for a bit until I am eligible for the loan I want".

Alan_Cross wrote: »

I read it as being left with the choice of either commiting an illegal act or being left by the lending industry's near total inability to cope with self-employment to remain in whatever his current predicament may be.

Ok, turn it round the other way.

Somebody you don't know has been self employed for 6 months.

They ask you to lend them £1,000.

You know that there's a 50% chance a self employed individual not trading at the end of the year - they will have no income.

Would you want to lend the money to them?

Shakethedisease

Perhaps it should be longer than 3 years.

Any reason for that ? Or do you just not 'trust' self-employed folks ?

95% of companies that build up a team of more than 8 staff within the first year survive the first 5 years of starting the business.

Meaning that 7 staff could get a mortgage within a year using their payslips, while the business owner has to wait three ? Where's the logic in that ? That's all I was pointing out.

So how do you prove that it's sustainable when in the first year or so you can barely prove anything?

I'm not suggesting that the self-employed should be granted mortgages a week after going into business for themselves, nor even 6 months. However, after a year in business I'd tenatively suggest should be looked at, perhaps, on a case by case basis. There's a whole world of difference between a 12/18 month old business struggling to stay afloat, and one with that's enjoying a healthy turnover and looking to expand. Yet ALL are treated the same for mortgage purposes by the High St.

Employees of these businesses only need provide 3 months wage slips and an employers reference as to the permanancy of their job.

Irreffutable proof via accountants books and HMRC's tax return statements. Sustainability should be self-evident with profit/loss and a certified/chartered accountants projection figures.. with bank statements to back this up. And a good credit record is self-explanatory.

I don't wish to get into an argument about this. But given the recent Government push towards 'enterprise' ( re Alan Sugar's appointment etc ) and helping small businesses.. to tar every single self-employed person and business as 'unmortgagable' no matter what for three long years is as I said very unfair. Those that do start up in order to try and go it themselves through this recession, and find (provable ) success, and despite the post above re Barclays... they are in for a nasty shock come re-mortgage time, or perhaps even 2 years from now when they try and buy a house. No High St lender the way things are now will touch them no matter how well they succeed.