Halifax Self Employed Mortgage

BungleGirl

Does anyone how Halifax (or anyone else) calculate how much they will lend based on profit figures from self employment? It seems such a minefield nowadays.

I have received the letters required from HMRC that confirm the profit figure that has been accepted by them for the last three tax years but as the business has grown the first two years are approx. £10k profit and the third year is just under £20k. If we wait until we have done the self assessment to April 2012, that would be about £30k.

We are only looking to borrow £35k or maybe £40k in total on a house worth £190k. We already have a £15k mortgage with 15 years to run (this was for the shortfall when the endowments matured) and are looking to increase it to the above figures to have work done on the house and consolidate a couple of credit card debts into it (£10k worth).

We have calculated that if we consolidate the cards into the mortgage we can overpay by £300 per month and pay off the total mortgage in about 6 years.

We have also just paid off a car loan and a big chunk off of one credit card so there are no other debts and no adverse credit, late payments etc.

This is based on my husband applying in his sole name as I don't have a perfect credit rating - would they however take into account the fact that I contribute towards the cost of running the house etc.?

Many thanks in advance for any replies.

Dave_Ham

There are other options, aside from the Halifax although they are quite accomodating in these circumstances.

With the numbers you have quoted, depending upon your OH age this should be fine.

Depends how poor your credit is/has been in terms of joint, but if you are not the mortgage then they can count none of your income.

Good luck

The_J

Most lenders will consider the net profit (after expenses, before tax).

If he is a ltd company they will often ask after profitability but concern themselves more with salary + dividends.

You should probably be OK to source a mortgage that size on current figures, this years figures would make it very easy. I advise speaking to a broker.

BungleGirl

Thanks very much for the replies. We are hoping that we can stick with Halifax as there is only a tiny fee (£95 I think) to increase borrowing and also it allows overpayments which is what we really want to do.

I will cross everything and hope that the computer says yes when we meet with the mortgage advisor next week