Self employed, First Time Buyer - What are my mortgage options?

Coatsy

I'm a FTB looking to get on the property ladder, problem is I'm self employed and I don't have proof of income.

The most I can get together for a deposit is 5 - 10%

I've been looking at mortgages and the only mortgage that it looks like I could potentially get is a self certified mortgage.

Are there anymore options for self employed buyers who can't prove income? Or is this my only realistic option?

AndrewSmith

How long have you been self employed?

To get yourself any kind of self certify rate that is approaching high street rates you need at least 10-15% deposit.

Also do not forget that self certify does not change or increase the amount you earn, just allows you to declare your income without necessarily proving it by way of accounts.

Be prepared though to show bank statements and proof of self employment as a minimum, along with the usualy ID requirements.

Andy

Coatsy

AndrewSmith wrote:

How long have you been self employed?

To get yourself any kind of self certify rate that is approaching high street rates you need at least 10-15% deposit.

Also do not forget that self certify does not change or increase the amount you earn, just allows you to declare your income without necessarily proving it by way of accounts.

Be prepared though to show bank statements and proof of self employment as a minimum, along with the usualy ID requirements.

Andy

Less than a year self employed, before that I was a student so I don't have the 3 years income proof that I would need for most of the other mortgage options.

Are there any other options for my situation?

regularsaver1

Why do you say as self-employed you do not have proof? Do you have an accountant?

AndrewSmith

It may be the case that self certify is the most appropriate way for you to go. In the costraints of the forum it is impossible to say. However it is more than likely that you will be best to have at least 15% deposit to give yourself the best chance of a decent rate.

Coatsy

AndrewSmith wrote:

To get yourself any kind of self certify rate that is approaching high street rates you need at least 10-15% deposit.

I've read that there are options for people with a lower % deposit but that results in having a higher interest rate, is that correct?

For a more competitive rate I guess it would be wise for me to keep saving for a while longer until I have at least 10 - 15% for a deposit?

At this point I'm trying to establish if self cert is the only option I have

Coatsy

regularsaver1 wrote:

Why do you say as self-employed you do not have proof? Do you have an accountant?

Because I've been self employed for less than a year, I said that I didn't have proof because I've read that 3 years proof of earnings is the golden number which is required for most other mortgages and since I've not been self employed for a year yet I don't have a full years proof of earnings.

regularsaver1

Sometimes lenders may take a projection from your accountant, taking into consideration deposit, previous job ect

Coatsy

AndrewSmith wrote:

It may be the case that self certify is the most appropriate way for you to go. In the costraints of the forum it is impossible to say. However it is more than likely that you will be best to have at least 15% deposit to give yourself the best chance of a decent rate.

That's pretty much what I thought before I created this thread, thanks for the confirmation Andrew!

Coatsy

regularsaver1 wrote:

Sometimes lenders may take a projection from your accountant, taking into consideration deposit, previous job ect

I think that is why self cert it my only real option, before I was self employed I was a student so I don't have previous jobs that can be taken into account. Looks like I'll need to wait longer and mount up a bigger deposit before I go any further with this.

Cheers guys!

AndrewSmith

Coatsy wrote:

That's pretty much what I thought before I created this thread, thanks for the confirmation Andrew!

No worries :beer: