Self Employed, New Business, Need a Mortgage. Help!

ollybowman

Hi,

Myself and my girlfriend purchased a house 2 years ago that needed to be completely renovated. The house was deemed un-mortgageable at the time, so we borrowed money from family and friends and £25,000 from the RBS to purchase the house and do the renovations. The house is now finished, we have had it revalued and now we need to get a mortgage.

This is where it gets tricky, I have been self employed for the last 4 years, and my partner has been self employed for one year. I have now joined my partner's business, which we have now formed into a ltd company, and have been trading as such for about 3 months.

We seem to be struggling to get a mortgage through the usual channels, and wondered if anyone had ideas, as we really need to pay back the money we have borrowed.

Is it possible to get a mortgage based on our salaries as employees of the company, even though we are both directors?

Conrad

It's better not to be limited and to use sole trader incomes over the last 1 yr +. As you've only just formed the ltd structure you can in some instances, subject to Accountants advice 'undo' this for now and have the Accountants verify income as self employed sole traders, afterall lenders want historic income which tends to be based on your submissions in the past year and back.

Then you'll need a good relationship with a lender to get this through, or failing that use a broker that has.

Or you could intend let it now and switch to buy to let, but beware many of those need minimum income of £25000 earned by the highest earner.