Obtaining a mortgage when you have just started a new job self employed.

psbrett

Me and my partner are finally looking for a house and have saved a nice deposit of say 15% for a property around £150k.
The problem is I have just started a new job on a self employed basis so do not have proof of earnings.
Is it still possible to obtain a mortgage or would it just be based on my partners earnings. We both have an excellent credit history.

_Andy_

What is your partners gross annual salary?

psbrett

My partners is 23k, Im worried that we may struggle on this basis.

VIGILANT22

150k val
22.5k dep
127.5k mortgage / 23k = 5.54 x income

You will struggle.........

psbrett

Are not a lot of mortgage companies moving towards affordability. Our mortgage payments would be similar to the rent we are paying now and we have no problem there at the moment. Otherwise I will have to go back into full time 9-5 employment just to get a mortgage and run my self employed business on the side. Sounds a bit of a shame when they are trying to attract FTB into the market.

_Andy_

Even on affordability basis you won't find a lender willing to do that multiple.

VIGILANT22

psbrett wrote: »

Are not a lot of mortgage companies moving towards affordability. Our mortgage payments would be similar to the rent we are paying now and we have no problem there at the moment. Otherwise I will have to go back into full time 9-5 employment just to get a mortgage and run my self employed business on the side. Sounds a bit of a shame when they are trying to attract FTB into the market.

Affordability doesn't mean if the client feels they can afford it..It is the lender's calculation....With a joint application and one salary (23k)....the affordability would be based on 2 people @ 23k....so 2 sets of living expenses etc would be deductable.....which will reduce the amount you could borrow....probably around 55/60k max........

psbrett

Ok thanks guys. So if I started a new job Full time that salary would be taken into consideration. Is there any length of time you have to be FT in order to obtain a mortgage, I was thinking just short term so I could be Self employed on the side until that takes off.

VIGILANT22

Be careful, not all lenders will consider you if you have had a break in employment and just started a new job etc/others will not lend during probation period etc....you really need to discuss this with a whole of market adviser...

Senior_Paper_Monitor

Varies by lender - from 1 month to 6 months normally (3 is pretty normal), but depending on time with last job, gap between employemnt and any probationery period on the new job thsi may vary.