Self employed Mortgage evidence?

scriblesvurt

Hello,

I will soon be looking for a mortgage and would like to make sure I am in the best position when I apply.

I currently have a mortgage but am now self employed. I will soon have been trading for 2 years. I need to know:

1:What evidence is required b high street lenders. Im thinking Halifax as I bank with them. What forms are required or do I get a statement from my Accountant?

2: When calculating affordability I believe they use the business net profit? If I have 2 years net profit figures do they take an average of the 2 years or just go off the net profit from the second year. (Which is substantially greater)

Thanks.

Scribs.

dunstonh

1:What evidence is required b high street lenders. Im thinking Halifax as I bank with them. What forms are required or do I get a statement from my Accountant?

Your accounts and/or confirmation of income submitted to HMRC.

2: When calculating affordability I believe they use the business net profit? If I have 2 years net profit figures do they take an average of the 2 years or just go off the net profit from the second year. (Which is substantially greater)

There is discretion with different lenders on how they treat it. Shorter term self employment is likely to be more cautious. Probably worth seeing a local mortgage broker to avoid lenders that wont be interested or likely to be more stringent.

pokey128

My husband is self employed and we have just been approved for a first direct mortgage. He needed to submit his last 3 sa100s and they took an average of them.

Conrad

Some lenders can consider the last years profit as opposed to taking an average.
Note some large lenders do not always seek any documentation at all if your credit score is high. Your existing lender may offer this 'fast tracking' process.

RedFraggle

My husband is self-employed and always mortgaged through Halifax previously. The last time was 2 years and times have certainly changed, but he was advised by a broker then that they were better than some lenders when dealing with self employed workers.