self employed mortgage complications

la_rosey

I have just been told by a mortgage advisor that i cannot get a mortgage because though i am self-employed and fill out a tax return every year, i work short/fixed term contracts, some of which are PAYE, some schedule D. My deposit and my income (ten years consistant income in the same industry) mean i can afford the mortgage i need easily, but the way in which i get paid means i will not be able to find a lender. Is this right?

nell53

Not true. As long as you have at least 2 [some lenders demand 3 years] accounts drawn up by a certified accountant then you can. I'm self employed and have always been able to get a mortgage- even nowadays.

blueberrypie

Was it an independent mortgage advisor who told you this, or one employed by a lender?

If the latter, what he actually meant was, "We won't lend to someone in your circumstances but there are other lenders out there who will."

la_rosey

independant - but is more worried that as i work paye contracts, i have multiple p60's (last year 3) and that this would look like i can't keep a job down! it's just the way my industry works!

Crashandburn

As long as there is a history on contracts being renewed then you should be fine. Some lenders might baulk because the contracts may only be 2-3 months in length. Northern Rock are good at these sort of cases

la_rosey

Hmm, i often get re-employed by the same people. However, as they are freelancers themselves, the companies that we work for change. I have been re-employed by the same companies on a number of occasions, but this spreads over a matter of years and so won't necessarily show over the three years of accounts they'll look into. Gonna be harder than i thought!

nell53

Being PAYE and self-employed does make it slightly more complicated, but it doesn't matter how many companies you've worked for- what the lender will want to have is evidence of your net profits for the years in question. Do you have an accountant to do your books?

kingstreet

If your schedule D earnings are enough, I'd simply use your tax assessments from that to justify your mortgage.

Halifax income verification for self-employed people is as follows;-

We require verification of 3 years income by way of SA302s, accountants reference or accounts

Wh05apk

Sorry to say, that despite what has been said, you will struggle, as your employment status is constantly changing, if your accounts show enough, then you may be ok, but I suspect you will need s/e and emp income to get the mortgage?