Self Employed - Mortgage trouble

DeeDeeS

We're in a very fortunate position to have £115k equity in our home and only a small £10k mortgage but unfortunately we have outgrown it with our two small children and are desperate to move to a larger property. We're only looking for a 50-70k mortgage.

My husband & I became joint company directors of our firm last August so neither of us will satisfy the high street banks with any proof of income (i.e. 3yrs of certified accounts). Even though we should reach 100k turnover by the end of our first financial year, we are both in employment - and employ others, we are obviously risky customers. But what really kills me is that those we employ would have no probs because they get pay slips from us!! Argh!

My question is - if we were to stay with our current lender (Halifax) who we've had no problems with - could we not just transfer and add to the mortgage on a new property (regardless of our current occupation) rather than having to go through the whole rigmarole of either a) finding someone who will lend to us or b) waiting 2.5 / 3 yrs to move.

Are we really going to have to start from scratch with the mortgage application? :wall:

ACG

Speak to them, you never know.
There is a lender called principality, who will lend to you with 1 years accounts so long as its below 75% LTV which this would be. But that would require you to wait until August.

DeeDeeS

Thanks for your reply. Yes, I might have a word with Halifax - but should I worry about revealing a change in circumstances to them? They're not going to remove my current mortgage from me are they because I'm such high risk?!

Also thanks for the heads up regarding Principality. I'll definitely look into them - I'm sure we can wait til August. It'll probably take us longer than that to get our own house sold in the current market!

Simon_gloster

Halifax will take into account your circumstances at the time of app.

3 yrs SA302's would be needed, as you cannot provide them it would be a decline. Last resort would be a referral to underwriting, however I would think they would want 18 months trading with a projection for the second yr from your accountant.

As you say they wont take your current mortgage away, but they wont help you move home. Best of luck.

Thrugelmir

DeeDeeS wrote: »

Even though we should reach 100k turnover by the end of our first financial year,

As the saying goes. Turnover is vanity, Profit is sanity and Cash is King.

So a £100k turnover means nothing in isolation.