Mortgages for Sole Traders

derekfortune

Hi,

I have been a sole trader since Apr 09 and business is good. We have seen a house we really like but as I do not have 2 years of accounts the mortgage appears to be a problem.

The house is 229,000 and we are looking to put down 23,000 and my wifes salary x4.25% = 175,000.

During the last 7 months I have a turnover of 14,000 which over a 12 month period would = 24,000 which if in full time employment along with my wifes salary would not be a problem.

However as I do not have any accounts so what are my options?

Kind Regards, Derek

opinions4u

You will only be able to rely on your wife's salary.

Lenders are usually not particularly interested in turnover - net profit is what matters to them. And they want to see a trend.

You've not been trading long enough to get accounts, declare a net profit or show an improving trading trend. You're 2 to 3 years off being able to do this.

So you are going to struggle to get a bigger mortgage at this point in time.

herbiesjp

You are a sole trader - but what is it that you do?

What did you do prior to this?