Mortgage advice for self employed

Boba_Fett

hi all, could anyone help.

I have a friend who had worked in her job for about 15 years when she bought 50% of the business, she's been the boss for just over a year now and back in nov/dec she couldn't get a mortgage through her FA, now that she has at least one years accounts will she fair any better?

is there someone in particular she should see or speak too?

would a whole of market company like london & country help?

thanks in advance

kingstreet

What exactly is the problem? Is it ONLY the length of her self-employment? Is there anything else?

Is the business a partnership or limited company?

What is her 50% of the profits like for the year?

What's her deposit?

Credit payment history?

A whole market or independent broker is the right place to go as long as there isn't an underlying problem other than the period of self-employment.

Boba_Fett

what from what she has told me it seems it is the length she has been in charge. I believe its a partnership.

she has a sizeable deposit around 15% im not sure what her exact profits are, although i know they are doing well.

i just wondered if there was a specific lender she should be seeing for the self employed or if there was anything she could do.

kingstreet

If she's now completed one year, her share of the net profit is within around 4x the mortgage she needs and she has no credit problems there should be options for her.

As I suggested, this should be fairly straightforward for a decent whole market or independent broker. Some whole market brokers work on commission-only and don't charge fees. Independents will consider direct to lender deals in return for a fee. If an independent uses a commission paying deal the commission will be rebated back to the client to subsidise the fee.

ACG

There are companies out there, i had a meeting with a lender yesterday and one of discussions we had was regarding something like this.
They told me that they generally need 2 years accounts, but because they have worked in a similar field just before then it would be ok.

I dont want to give the lenders name as im not sure if it would class as advice, but if you speak to an advisor i think they will be able to help.

Conrad

If her working track record is as you suggest, your friend should have some options. An experienced competent broker should be able to help. It's important the application suceeds first time and they do not get declined so make sure the broker is confident in waht they are doing.