Newly self-employed: mortgage possible?

Two9A

Hi all. I'm considering getting a mortgage for about 70k, but there are a few factors that make me think it won't go as smoothly as I'd like:

• I'm self-employed, and have only just registered as such; I've got maybe 3 months of transaction history.
• I've got no previous employment history (this is the first job where I've been paid).
• I've also got absolutely no credit history. [Is this a good or bad thing?]
• If I extrapolate my earnings so far, I definitely can't cover the standard 4x multiple to achieve a 70k amount (it's in the region of 12-15k/yr at the moment).

I've considered a joint application with another family member, which might do the trick, but it seems a bit of a hack. So, my questions are: Do I have a viable situation to get a mortgage, and is there any evidence I can supply at this point to help my application along?

silvercar

The question to ask yourself is whether you are sure you could afford a mortgage of 70k.

stamford

Two9A wrote:

Hi all. I'm considering getting a mortgage for about 70k, but there are a few factors that make me think it won't go as smoothly as I'd like:

• I'm self-employed, and have only just registered as such; I've got maybe 3 months of transaction history.
• I've got no previous employment history (this is the first job where I've been paid).
• I've also got absolutely no credit history. [Is this a good or bad thing?]
• If I extrapolate my earnings so far, I definitely can't cover the standard 4x multiple to achieve a 70k amount (it's in the region of 12-15k/yr at the moment).

I've considered a joint application with another family member, which might do the trick, but it seems a bit of a hack. So, my questions are: Do I have a viable situation to get a mortgage, and is there any evidence I can supply at this point to help my application along?

"If you don't ask you don't get" so why not stick your head above the parapet in a couple of Building Societies and pose the question

Might be tricky though from my experience a few years back they wanted 3 years worth of accounts and that was just to up my existing mortgage. Daft jobs worth in the Halifax would only offer less than I already owed them so I got hold of the Manager & told him I'd take my debt elsewhere unless they played ball. They played the game and I took it elsewhere 2 yrs later.

Two9A

silvercar wrote:

The question to ask yourself is whether you are sure you could afford a mortgage of 70k.

I've had a quick run through some mortgage calculators, and at a good rate (6%), 70k looks like it'd cost me approximately 500/month. I live a very frugal lifestyle (the last thing I bought which wasn't food was a book, 4 months ago), so I should be able to cover that/food/bills with cash to spare.

Of course, with the issues I've outlined, I doubt a lender would be so kind as to set my rate at 6%

Alan_M_2

It will all revolve around the size of deposit you have.

clutton_2

get a credit card and start using it, even if it is only £5 per week, and pay it back regularly EVERY single time, on time. This will prove to any future lender that you are a credit worthy person. When they check up on your credit refs in the future, it does not show how much you borrowed/spent on your card, just that you consistently pay it back and are NEVER late with the payments. IT is true that if you have not had credit, its hard to get credit, so this is one way to start. But, as others say, can you afford a mortgage plus all the bills ? Bills often come to as much as the mortgage !!!

arkie

use a fee free broker, they will get you a mortgage, they can base it on future/predicted earnings, minimum deposit would have to be 10% although you could get one with 5% deposit

Two9A

clutton: I've actually tried the route of gaining credit, and the best I was able to get was a debit card with no overdraft. (winner!) According to the issuers, a year of regular transactions on that and I might gain a £5 overdraft. Slow buildup...

Alan, arkie: As for the deposit, I'm hoping (with the help of family members) to raise 15-20%; I've got 5% at present, but that's very unlikely to secure a deal in the overheated market I live in (60-70% rises this year). I've taken that into account for the mortgage amount, since the figure I'm looking at is after the deposit, and it should help matters along a bit.