self employed - easiest lender?

glitterygirlie

Hi there and thanks for reading.

I am self employed and looking for advice on who would be the best bank/BS to approach for a new mortgage. I am in with Barclays on friday who I have my business banking with, but I have read here that they are stringent and take ages! I don't have any credit problems etc, but I know things are been looked at more closely right now and don't want to become bogged down if there is someone who people think might be more suitable.


Any advice would be much welcomed!
Michelle

_Andy_

Not enough info to go on

- How long have you been SE for?
- What is your net profit for each of the last three years?
- What is your situation - FTB, remortgage?
- How much do you want to borrow and what is the property value?
- Any adverse credit?

happybroker

if your accounts look ok then you shouldn't have an issue. Lenders have different criteria to each other which is where a broker can help.

The main issue is that accountant's like to make your income look as low as possible to mitigate your tax liability where as banks like to see lots of income to evidence your ability to service the debt.

glitterygirlie

sorry I realised after posting I did not provide any info for a decision!

2007 - NP 106
2008 - NP 140
2009 - NP 110

I get an 80% share backed by accounts and certificate from the accountant.

current owner of property worth £170 with mortgage with 15 years left of £60k. I am keeping this and renting it out and can obtain consent from lender.

Loan of 4500 from barclays, 3 credit cards with zero balance. (one missed payment in July for mbna, £130 balance paid off in full when I realised the cheque had not arrived, now DD set up!) otherwise perfect record as far as I can tell!

Can obtain letter from my barclays business manager to say we run an excellent business account (currently showing approx £80k balance). We have a further £100k in invoices waiting to be paid so no worries in terms of the business.

New property 500k - 370k mortgage required. I guess I am just nervous due to the so called "credit crunch" and because I guess it makes it hardest for self employed etc to get through the usual hoops!

thanks again for all your help!

happybroker

if you bank with Barclays then you may well have a pre approved mortgage limit which is calculated using your account conduct...much like a credit card amazingly, it's based on your "propensity to repay" a certain amount of money.

A broker or your branch adviser will be able to find out if this fits. Sounds like a goer to me, you will probably need to get confirmation from a letting agent re potential rental income on your existing home.

I am assuming the net profit figures are in £'000s by the way!!

glitterygirlie

Hi Happybroker

I only bank with them on the business side, so I don't think they do the pre-app thing unless you are also with them for personal banking but I may be wrong!

I can get a letting agreement sorted, that should be fine, and yes the figures are in 000's thankfully!

I am just wondering if there is anyone who can suggest a lender? I have been told nationwide but have no idea other than barclays who to approach (i got an AIP from Leeds BS online by the way!)

thanks again!
Michelle

happybroker

Nationwide are one fo the few lenders who have some underwriters than understand risk.

Barclays are another to be fair to them, the service isn't going to blow your mind but than how often do you speak to your mortgage lender? If a broker is organising this for you they will do the shouting and screaming if any is needed.

Leeds BS (I like mutuals and live in Leeds by the way!) are ok but not the cheapest. With what you've posted I think you might have the pick of the bunch, why not get a broker to have a look and look for your self also? It's the MSE way after all!!!

glitterygirlie

Hi happybroker,

thanks for your help, I am leeds/sheffield based as well!

I think I will try nationwide, and then I always have the hapless barclays to fall back on if not!
Just a quick question - will the mbna 1 payment late be an issue do you think?

Best wishes
Michelle