True Self cert mortgages ... help!

richyleek

Who's doing the best deals?
I'm self employed with no books through a chartered accountant so getting a mortgage is a nightmare.

i have been offered a mortgage through bristol and west, but they are offering me a 6.7% intrest rate (fixed) for 3 years with a £599 arrangement fee.

The problem is, im 22 and my wife is 21, and we only have enough for 10% of the total value of the house to use as a deposit.

Any advice will be appeciated!
Thankyou in advance!

richy

herbiesjp

richyleek wrote:

Who's doing the best deals?
I'm self employed with no books through a chartered accountant so getting a mortgage is a nightmare.

i have been offered a mortgage through bristol and west, but they are offering me a 6.7% intrest rate (fixed) for 3 years with a £599 arrangement fee.

The problem is, im 22 and my wife is 21, and we only have enough for 10% of the total value of the house to use as a deposit.

Any advice will be appeciated!
Thankyou in advance!

richy

What is the property price?

What is your income?
What is your wife's income?

How long have you been self employed? Have you done your own self assessment forms?

richyleek

The price is £124,950
It is ex-council
my income is now £24,000
and my wifes is £11,000
i have been self employed for 5 years, but my income has increased in the last year by about £10,000.

Timmne

Surely your tax returns for the last 5 years should show the necessary profits? Have you tried doing a 1-1 interview with someone from the Halifax or something? If you can prove your income by way of bank / tax return, they must be able to do something?

UK007BullDog

What kind of ex-local authority property is it?
House, Flat or maisonette? If latter two how high up and any commercial properties below, next or opposite it?

As you are requesting a true self cert most lenders will request you put down 15 -25% deposit as they are carrying the risk. Most will only lend on 25% deposit. If you want them to carry more of the risk, i.e. lend you more you have to accept the higher rate they charge.

I would really recommend you get yourself an accountant asap who will do the books for you. Once you have a chartered accountant it will be so much easier to get a mortgage and not just self cert as you can then prove your income. Accountants do not cost the world and in the long run you will save money as the accountant knows exactly where you can claim back tax, so will help your business save money in the long run.

herbiesjp

Just because you are self employed does not mean self cert is your only option

There are lenders that could potentially look at this for you on standard terms

Have a read through Martins articles - they may help.

Have a word with a fee free whole of market mortgage adviser and let them find a good deal for - please explore all avenues before going for the more expensive self cert route

HTH

MortgageMamma

Timmne wrote:

Surely your tax returns for the last 5 years should show the necessary profits? Have you tried doing a 1-1 interview with someone from the Halifax or something? If you can prove your income by way of bank / tax return, they must be able to do something?

Not really a good idea, most people, and not saying this about the OP, use their self assessment to try and reduce their taxable income by writing things off - so it does not really give an accurate picture of the total earnings. For example, when I did self assessment things like petrol, phone expenses etc were all taken off earnings before tax calculation

Timmne

MortgageMamma wrote:

Not really a good idea, most people, and not saying this about the OP, use their self assessment to try and reduce their taxable income by writing things off - so it does not really give an accurate picture of the total earnings. For example, when I did self assessment things like petrol, phone expenses etc were all taken off earnings before tax calculation

With respect; you were therefore making your own rules up and evading tax?

If the OP is an honest person and declares his earnings, he should surely be fine using my original suggestion. If he's evading tax, then he doesn't deserve to get a mortgage at all! Sorry if that sounds harsh, but I pay my tax and it irritates me when others 'choose not to'....

Back to the original topic....

Spangled

Do lenders look at total income before tax and/or expenses are taken off - or net profit after tax and/or expenses are taken off?

For the self-employed there's usually a big difference between the two figures and would make a difference to the size of mortgage you could get.

MortgageMamma

Timmne wrote:

With respect; you were therefore making your own rules up and evading tax?

If the OP is an honest person and declares his earnings, he should surely be fine using my original suggestion. If he's evading tax, then he doesn't deserve to get a mortgage at all! Sorry if that sounds harsh, but I pay my tax and it irritates me when others 'choose not to'....

Back to the original topic....

with respect, as a self employed person there are certain things you can write off. an accountant did my returns so im quite sure its all above board. its a fact, if theres an allowance available to you, you take full advantage of it. Accusing me of tax evasion is really quite assumptive, especially since you know nothing of me or my businesses.

payless

Timmne wrote:

If he's evading tax, then he doesn't deserve to get a mortgage at all! Sorry if that sounds harsh, but I pay my tax and it irritates me when others 'choose not to'....

Back to the original topic....

Have to agree.. and most self cert forms ask for taxable income anyway.

In the past I have had some lenders accept a persons tax self assessment return.

A broker is a good starting point, but also current bankers- who might just look at bank account and accept the level of money they see going thro' account ( high st banks might not always have the best rates - but often competitive, and better than the normal tradiational self certs )

A little more deposit might get you into the the better rates if need self cert / or fast track ( on latter you still need to be honest, and proof may possibly be required )