Advice re mortgage

londoncab

Hi, i am looking to get a mortgage later on this year and am after some advise re deposits and length of self employment.

I am a licenced london black taxi driver so am self employed have been in this job for 1 year now and have a years books from my accountant.
At the moment i have a 10% deposit saved.

I was wondering if there are any mortgage companys that would look at me at the moment or if i need 18 months or 2 years books with a bigger deposit.

Any info to set me on my way would be much appreciated

londoncab

Would be gratefull for any advise

many thanks

herbiesjp

There may be 1 or 2 lenders that could look at this.

They will look at the 1 year, and a projection for year 2

But your NET profit will need to be high enough to justify the borrowing you are looking at (along with fitting all other criteria)

With "only" a 10% deposit, you will have limited options available also.

Best bet would be to discuss with a whole of market mortgage adviser

londoncab

Thanks for replying

I shall most properly start looking in june as i need to move by october by that time i should have 15% deposit plus all other costs, then id have 18 months books by then.
Just to add i have no bad credit etc just one loan for around 3000, and my missus works part time as well.

Would this open up more lenders to ourselves ??

Many thanks for looking

herbiesjp

18 months books not really much help - although it may be able to give you/your accountant a more accurate idea of the projection for year 2

15% deposit will definitely help, along with any additional income your OH may have.

So a few more doors will open up

However, it will all depend on the figures in your accounts, along with how many years worth of accounts you have when you come to apply.

So in terms of what is better for you, when it comes to getting a mortgage it will mean showing as high as NET profit as possible, despite wanting to minimise your tax liability and keeping a low NET profit.

londoncab

Many thanks for your advise herb.

If i could just pick your brains one more time if i was to wait the whole year and have the 2 years books again does this open more doors ??

herbiesjp

yes that will open up more doors

ads910

the mortgage lender will probably ask for 3 years audited accounts,

give your accountant a call, let him know your situation and he may be able to help you out!!

herbiesjp

the mortgage lender will probably ask for 3 years audited accounts,

Depends on the lender

give your accountant a call, let him know your situation and he may be able to help you out!!

He can only help out in so far as doing the two years accounts

londoncab

Many thanks herb for all your advise greatly appreciated...