Self-employed agony

Ratsdela

Hi

My husband and I are self-employed. I'm a freelance and he owns and runs a pub - peversley his employees can get a mortgage but he can't.

We have a really substantial deposit and will probably need to borrow 100k to get the house we want....

... here's the question. How feasible is it for my husband to employee me, so that my contract of employment can secure the elusive mortgage we need?

Does that make sense? Any ideas really welcome.

Rachel

GMS

Why can you not prove your income from your self employment?

Perverse that his employees can get a job? How? If your husband declares his income and pays tax like his employees then he can apply for a mortgage.

If he were to employ you then technically you could apply for a mortgage but this would need to be proven income and generally if employed by a family business you would need verification from the company accountant. If the accountant can verify the employees details and income then surely he can verify your husbands earnings.

If he were to 'employ' you for the sole purpose of getting a mortgage then it would be bordering on fraud.

What income can you prove?

Ratsdela

Thanks so much for replying. Basically, my partner has just bought the pub after taking a four-year sabatical, in which he did up our old house to add value (which it did) and we travelled Australia. He has owned, successfully, three pubs prior to that. However, as the recent pub has just opened, then any income would be based on a mere month's accounts and would be, I suppose, speculative. We would be happy to borrow on this, but I'm not sure if there's a mortgage lender who would consider it, despite a helpful 545 point credit rating.

I would be 'employed' to get a mortgage, if it's one way in which we could do it. But I would actually work for the wage. Would that still be fraudulent?

Would my accounts as a lowly freelance writer standing for anything?

Rachel

GMS

A minimum of 1 years accounts would be needed. This would also mean a restricted Loan to Value but with a large deposit you should fall within the limits.

What figure would your accounts show? How many years?

If you are employed then it is not fraudulent. If you were to be stated as working and not doing then it could be. Either way you would most likely need the accountant to conform details.

You would be best speaking to a 'Whole of Market' broker to run through options, if any.

Ratsdela

You've been very helpful, thanks. It's a frustrating state of affairs to be in!

The last comment - about having a year's accounts: was that in general, or in reply to my asking whether my piddly freelance income over the years would offer a basis even for a small mortgage?

My freelance work has earned me 10-20K per year for over a decade. Would that account for anything at all?

R

GMS

If you had 1 years worth of accounts there could be lenders out there.

If you have over 3 years then you would have more choice. However 20k would be too low to raise 100k. Could you maybe look to get something cheaper for the short term and wait for your husband's accouns to be sorted out, even if only a year's worth.

Other option is to rent until accounts arranged.

opinions4u

Live in the pub and save more - opening up more choices.

Buy a cheaper house.

Wait - and have access to a bigger range of mortgage deals.

All sorts of options. Unfortunately not exactly what you want though.

Ratsdela

thanks for all comments.
can't move into pub with two kids - it's too far away from their school, too. I'll see if I can find a way of raising a much smaller mortgage on my freelance accounts. Thanks and thanks again.

R