Self employment and mortgages

treacletoes_2

Hi - I am buying a property with my husband. I have a full time job and he is self employed.
The Nationwide have asked for his accountant to tick a certificate to say he has been trading for 2 years and earns a certain amount.
The truth is, he has 19 years experience in his field, but has only been trading as his current self employed status for just under 2 years, and only has one tax return to prove this.

With a 10% deposit, my salary, and his prior experience and a good trading record so far, is the Nationwide going to be sympathetic - or will we have problems?

any advice appreciated!

herbiesjp

They will normally ask to see to 2 years worth of accounts.

Tell them exactly what documents you have, as there is no point applying, if you do not have the paperwork they will ask you for.

HTH

treacletoes_2

The Nationwide have not asked to see any accounts - just for his accountant to fill in some information to send back. As we have a big deposit, and the security of my income, do you think there is any flexibility?

danjberry

it will depend, how much income do you earn? how much is the mortgage for? if it is only a small income stretch based on your income there could easily be some flexibility but it all depends on the individual circumstances.

treacletoes_2

His income is important to the sale. The mortgage is 7x my salary, so the stretch would be pretty far. He has up to date sales records and 3 x12 month contracts for his business that show secured regular income. In April he will have the 2 years records.

We have a 10% deposit, and I have already had a mortgage with the NW for 4.5 years.

Will it be enough for his accountant to show confidence in exisiting sales and projected sales figures?

MortgageMamma

Why have you gone to Nationwide? They are quite competitive at the moment but there are other competitive lenders who could take you on without going to such pains about income

treacletoes_2

We have gone to NW as my existing mortgage is with them, so they didnt make any checks on me or charge a redemption - but they do seem fussy about income.
Which lender is the most flexible with self employment?

MortgageMamma

It all depends on the circumstances of self employment, e.g. sole trader. ltd co, how long you have been trading, what your income is and if you can prove it. There is one lender who may take you on full status for income if you have one years accounts, but not knowing anything about you it would be unwise of me to direct you to them as they could be totally unsuitable for you. Other than that you could self certify your income.

Your best option though is to take offical advice from a professional - don't take anything on these forums as gospel its dangerous to do that

toonfish

there is no harm in trying Natiowide first, some lenders are more flexible for existing borrowers. Abbey for example will forward a further advance in some cases without even asking employment/income status if the client calls them direct. Some banks will offer a pre approved limit on how you run your account, regardless of what you actually earn