self employed mortgage

jenij07

Hi can anyoe help my boyfriend is tryng to buy a propery but he cant get a mortgage as he is self employed he has a small deposit and has applied to 95% mortgages but as he is self employed he keeps getting turned down I wish I was in a position to help but im not does anyone have any advi:mad:ce??

whitewing

Is he contacting them directly or is he trying through a broker?

jenij07

He is doing it through a mortgage advisor who claims to haveinvestigated every route??? but there must be a way surely??

GMS

How many years accounts does he have?

Best he could hope for would be 90% I suspect.

A broker may be worth a chat

kingstreet

It won't be self-employment which is causing the decline. It'll be too little income, or not long enough self-employed. There are very few 95% mortgages around at the moment, so he's competing against a lot of very credit worthy, attractive competitors for the little money that's available.

He needs to make sure his net profit figures can be verified for at least two years with a projection, three would be better, by accounts or accountants certificate. He should be borrowing no more than four times his net profit also taking off the annual value of any credit commitments.

He needs to get a bigger deposit. 10% should be his minimum. 15% would get him access to better mortgage products and lower rates.

jenij07

This may sound silly but is a broker different from a mortgage advisor? i do appreciate your advice thanks

kingstreet

To a certain extent the terms advisor and broker are interchangeable, although those working for banks and estate agents seem to use the former where people like GMS and I would probably be more likely to call ourselves brokers.

To ensure you get the best possible advice, I'd suggest looking for a whole of market or independent broker who will give a choice of commission from the lender or a fee payment from you, depending on how you'd like them to be paid.

Bank and estate agency advisers aren't often whole of market, or independent, having only one provider's products or at best a limited panel of lenders to offer to you.

jenij07

perfect thanks so much for your help!