FTB Mortgage for a Freelancer

master_ian

Hi...

My sister and I are in our early 30's and are saving up to buy our first Home in London. We will have £20K as a deposit in 3 months and are planning to start putting in offers then. We're looking to buy a two bed flat (if we can get an end-of-year discount off the Housebuilders - excellent!) at about £170K -£190K.
Our salaries and what we do is the nagging issue -My sis is an Occupational Therapist on a contract at about £40K (she likes her freedom and the rates are nearly double that of permanent salaries). I'm a freelance musician with a second freelance job and I've yet to register as self-employed. My earnings average about 25K/year. She has no debt and I'm 7K in it!! - however, this is all in one personal loan at a low rate 6.9% which I pay off regularly every month, and I have no credit/store cards, etc. The question is: with her working as a contractor and me as a freelancer can we still get 3 or 4 times our joint salaries to get a £160K mortgage? I've heard about self-certification mortgages...would our deposit of 20K (10%) help us get a decent rate?

Just to note we also have put aside another 5K for fees, stamp duty, etc. We're aiming for a fixed rate repayment mortgage.

Thanks for any advice or comments...

herbiesjp

Based on the two income figures you have put down, it would appear the mortgage amount will not be a problem.

What will be a problem with some lenders is your employment status, and whether you can verify your incomes. If you can verify your incomes then no problem. If not then you will limit which lenders can offer you the mortgage.

Self cert should not be your first option, just because you are freelance.

Have a word with a fee free whole of market adviser, and let them come back to you with some options. A good adviser will look in the first instance to place with a high street lender and get you "standard" rates as opposed to self cert

HTH

Seaxwyn

Hi Ian

My partner and I are both self-employed and had no problems getting a mortgage.

We had to show three year's worth of audited accounts, I do my own so just supplied a piece of paper with the numbers on and three statements from the Inland Revenue.

We have got mortgages with both Cheltenham and Gloucester and Abbey on this basis.

Good luck

Seaxwyn

master_ian

Cheers for the replies...

My sister has been on different contracts, however she's been working consistently so will be able to show pay slips. I, however, have only gotten off job seekers allowance and housing/council tax benefit 2 months ago, but my two freelance jobs have really taken off and I'm enjoying a constant income from them. Will this further dent our choices to lenders and rates?

One of my jobs involves regular commission - however, as the company is based in Spain, will pay slips (in euros) be accepted as a proof of income?

We will be seeing an independent mortgage advisor in January, however--just wanted to do some research beforehand!

herbiesjp

You may be able to get the mortgage agreed just on the basis of your sister's income - so your income may not be needed.

darkcloudi

master_ian the loan possibly may be a problem as when I applied for a mortgage they also took this into account. Some mortgage providers check how long is left on it.

As I had less then 6 months they were offering me the mortgage. So if you can pay loan off sooner it can help.