Why can't I get a mortgage!

MrMaxP

I'm having real difficulty getting a mortgage and need some help. I'll explain the situation.

I have a mortgage and am selling my house to move in with GF who currently lives 100 miles away. The new house is more expensive than mine so I need to borrow more. Once I've sold I'll have 20% deposit and will need to borrow around 140,000, my current mortgage is 107,000.

I have no bad credit whatsoever and have had a mortgage since 2000 with no missed payments. I have earned 40k-50k PA for the last 10 years.

I moved job last May to be close to GF and rented out my house. The company I moved to went bust at Xmas. I had savings so decided to go freelance for a while and work from home. I've landed a good permanent contract for £55k+ PA but because it's with a foreign company they've asked me to set up a LTD company to make it easier for them. I am therefore the only employee of a LTD company that I own, that has no outgoings whatsoever apart from my wages (I work from home on a computer). I have had several job offers over the last few months as there is plenty of work in my profession but I've said no as I prefer to work from home as there are no jobs less than 30 mins commute from where I want to live.

Unfortunately this means every mortgage provider see's a LTD company with only 1 months accounts and says no without taking it any further! I'm very employable, I have a good contract and money coming in, I've got a good credit rating and worse case I can walk into a full time normal job tomorrow if needs be. Why won't anyone lend me money!!!!

Has anyone got any idea's at all on what I can do? I'm running out of options!


Thanks,
Max

luckyfool

You have a ltd company. You are liable for your own tax and NI. As far as the lender is concerned you are self employed, hence an absolute minimum of 12 months trading and 1 yrs full accounts would be required. Even if it was treated as a contractor, they would want you to have been with them at least 12 months anyway.

Get them to give you an employment contract, payslips etc and pay you direct then you won't have this issue.

uberteeb

What do you do for a living?

ItMightBeUsefulOneDay

I've been having much the same battles and the banks really, really don't want to lend any more, to anyone. Much less to self employed people.
With the setup you've got you are classed as self employed and you'll struggle to get a mortgage without 2 years of books though some will look at 1 year. As I said, I'm coming up against the same brick walls as you are and it's frustrating to be viewed as a second class citizen just because of a job choice.

Some banks (I'm told) will look differently at IT Contractors - what do you do for a job?

luckyfool

IT Contractors would still require at least a year of contracting behind them.