Mortgage for self-employed

krazyk

Hi there,

Do I have any chance of getting a mortgage while being self-employed? I thought it was going to be hard before but it appears even harder now. It's comlicated more by the fact that I'm 4 months away from getting my first year's worth of accounts.

What options do I have in gaining a mortgage?

K

somemortgageanswers

KrazyK - if you dont have accounts, the only way you can get a mortgage is going via a self cert mortgage - this is where you state your income but lenders will not ask to see proof.

I recommend you contact an independent mortgage broker who can assess your needs and ensure any mortgage you take out is affordable to you.

Oh - you will need a deposit of around 15% at least

krazyk

Right, I have no money at all available for a deposit, so will have to wait until the year's up or find an alternative way to get a mortgage.

The amount for the mortgage could be as "low" as £83.5k, do you still think I'll have problems getting one?

The property I'm interested in is in a shared ownership scheme (where I pay 50% of the full price then rent to a housing assoication).

K

herbiesjp

There are a couple of lenders that I can think of that will look at your situation, but it would have to be good based on your circumstances and affordability would also have to be taken into account.

krazyk

Which lenders? :-)

K

somemortgageanswers

KrazyK - getting 100% on a shared ownership will not be easy, especially if you have no accounts. Do you do your own accounts or do you have an accountant?

As Herbie said there are a few lenders, but they will want a lot of information

If you have an accountant will he/she give a projection?

Another option could be a guarantor mortgage ... would you be happy with that in the early years until your business is more estabilished?

krazyk

I have already been down the guarantor-line before with renting a flat. The first time I tried to rent a flat here the landlady wanted a guarantor but as the property (then) was purely for work I certainly didn't want to put down family members or anyone else. Besides my folks are worse off than me. So I declined and then looked at what I could do to improve estate agents preception of my financial situation. I then became self-employed and could put down a much higher salary and guess what, I got a rented house straightaway.

Buying a place is going to be a whole different story.

Yes I use an accountant and I'm sure they can give me a projection, so will ask for that.

I contacted CharcolOnline and they have said that (like people here) only a few firms would offer me such a mortgage, here's their list:

Leed & Holbeck
Nationwide
Abbey National
Principality
Halifax
Woolwich
West Bromwich

I have just remembered (doh) that I put myself on the local housing association/council housing list over a year ago. I will contact both of them and ask to update my details (I was living outside the area at the time and only recieved 30 points so perhaps this might be higher now that I live in their area). I will tell them I have seen a property for sell (and has been for months) that I could afford if it was at 50%. I've already contacted the estate agent and they have said that if I was approved my the council then they would definitely sell it to me (!! :-)).

Will keep this thread up to date on progress.

K

krazyk

Hi there,

I think I've gone as far as I can down this route. Gathering info from the local council and housing associations I find that funding is the only thing stopping me from gaining a shared ownership property. And there is none now. All funding has been used.

There are many new homes being built in the area, so will find out if any of these will be shared ownership but other than that there is nothing else I can do.

Perhaps more funding will come?

K