Self employed mortgages

JerryD_2

I am self employed and have been for one year. I wonder if its possible to get a small mortgage on my wage, and after just two years of accounts. Because I was still claiming benefits during eight months of my first years accounts (all above board! I was a 'work trial' scheme) I could only earn £90/week from my self employment for this eight months, making my earnings year one £10,000. After year two I will be earning about £22,500 gross (after business costs/before tax). Due to my low earnings in the first year (which of course not my 'fault' as I was limited to what I could earn) I am wondering if a mortgage offer is USUALLY based on the average of two years, making my average wage over the first two years about £16,250 which would be ok as I only want a small £50,000 or so mortgage. Any advice greatly appreciated

:money:

ACG

What percentage deposit do you have?

If you have a 25% deposit this shouldnt be a problem, if you have a little less it should still be possible.
If you have 10% then im not so sure.

Dave_Ham

ACG has asked the right question; deposit and credit score will be key...

These aside, there are some flexible lenders and 90% is a possiblity subject to credit score and age.

I say age, as hardly any mortgages are interest only and given your wage you will need a fair size term.

A broker will be able to source this for you...


Good luck

Conrad

Just a warning to brokers - many are getting massive £125000 fines for fasttracking cases and where the same old 'novelty' payslips show up on several of thier files.

All it takes is one former client in payment destress to spill the beans, and the FSA will take your files apart.

Also people talk to thier mates / thier partner - just one phone call to the FSA and your'e a gonner......

Dave_Ham

Conrad wrote: »

Just a warning to brokers - many are getting massive £125000 fines for fasttracking cases and where the same old 'novelty' payslips show up on several of thier files.

All it takes is one former client in payment destress to spill the beans, and the FSA will take your files apart.

Also people talk to thier mates / thier partner - just one phone call to the FSA and your'e a gonner......

Not once has the OP asked anyone to recreate payslips and not once was any of the information provided in the nature, now back to planet Earth please

Some lenders will be more understanding of these circumstances than others, subject as I said to deposit and credit score. So without that information we are no further forward and certainly not thanks to random comments like this implying either of us had making up income as a solution.

Not helpful at all, save your time and do not post in future as absolutely no added value!

ACG

Conrad wrote: »

Just a warning to brokers - many are getting massive £125000 fines for fasttracking cases and where the same old 'novelty' payslips show up on several of thier files.

All it takes is one former client in payment destress to spill the beans, and the FSA will take your files apart.

Also people talk to thier mates / thier partner - just one phone call to the FSA and your'e a gonner......

Was this post even meant for this thread?

brit1234

Conrad wrote: »

Just a warning to brokers - many are getting massive £125000 fines for fasttracking cases and where the same old 'novelty' payslips show up on several of thier files.

All it takes is one former client in payment destress to spill the beans, and the FSA will take your files apart.

Also people talk to thier mates / thier partner - just one phone call to the FSA and your'e a gonner......

Hopefully fast track mortgages will go shortly banned by the MMR. I feel sorry for those self employed who applied with self certs and fast tracks honestly however they were both infested with fraud and had to go.

Watch this video to show how massive widespread this broker fraud went:

http://www.youtube.com/watch?v=vT1UnGS91BY

ACG

Brit your signature made me smile:

:exclamatiScams - Shared Equity, Shared Ownership, Newbuy

Why do you think theyre scams?

Surely its better for people to buy somewhere even if they only own a share of it rather than rent? Atleast they they have the opportunity to build up some collateral? Otherwise the whole rent is dead money rather than just part of?

holly_hobby

You could also consider approaching a lender whom don't credit score and individually uw their cases - such as Ipswich B Society (whom lend directly nationwide, but have geographical restrictions on intermediary business).

The will look at 2 yrs books, and whilst you have an issue with yr 1, you will be able to discuss the issues surrounding the evidenced income for that period - obv your status in general will have an impact too, but may be worth a phonecall just to get a feel on how the case will be considered generally.

Here's a link to their site - http://www.ibs.co.uk/mortgages

Of course, thats without stating the obvious of spending an hour with a whole of market adviser - who will float the case with their various BDMs/lender reps.

Hope this helps ... I wish you well in your search !

Holly

BettySpofkins

ACG wrote: »

Brit your signature

Please don't try to derail threads. This one is about mortgages for the self-employed, a subject I'm particularly keen to hear more about.

ACG

BettySpofkins wrote: »

Please don't try to derail threads. This one is about mortgages for the self-employed, a subject I'm particularly keen to hear more about.

Of which i have asked the OP more questions to help with.

However in the mean time something cropped up that i was interested in. Its not uncommon for threads to go of course a little.

You can start your own thread if you have your own questions, i and any other advisors would be happy to help where possible.