Employee vs Partner??

Bertie_the_third

My husband is very shortly to be made a partner in the firm he is currently working as an employee. Although his salary will double, will it be harder for us to get a mortgage as he will technically be newly self employed? Would we be better applying now even though we probably would qualify for a much smaller loan based on income?

Any advice greatly appreciated

B

anamenottaken

Salaried partner or equity partner?

Bertie_the_third

ummmm....

crumbs, salaried or equity? he's a GP so he will buy a share in the practice, income will come in part from government via health board and partly from pharmacy and they will pay themselves a regular drawing from this plus bonus 2 x / yr.

gunge

I got a mortgage around 2 years ago with Abbey/Santander, via a broker, at a point where I was still employed but would become an equity partner by completion. I was open with the broker, and I assume they were with Abbey, but it didnt seem to be considered a negative point. I was going for around 4x salary at the time, with a 75% LTV on a 10 year fix.

There were better deals around, the Post Office was doing 0.5% lower interest, but they wouldnt entertain the thought of someone newly self-employed.

I think you are right to be cautious, since it will compromise your options a bit, but it may not be too bad. Its situations like this where a good broker can do all the hard work for you.

Bertie_the_third

Thanks. I'm going to try L & C brokers and see what they say.