mortgage for self employed

charlotte_rose

I am currently employed by 3 local education authorities plus private schools to deliver teaching services. In total I do about 28-35 hours a week.

I have been in these jobs for 8-months and I have been thinking of buying something later this year.

I was hoping someone could give me an indication of whether I can get a mortgage, the amount, the interest rate and the documents I need to prepare.

please PM me for more information if required.

kind regards

C

The_J

In general you'll require 2 years of accounts to prove your income.

Dave_Ham

When you say you are employed, do you have a contract or are you invoicing them and self employed as thread suggests?

Typically, if you are self employed you will find it almost impossible to achieve a mortgage without having at the absolute least 1 set of accounts..

charlotte_rose

I have 12-month contracts (renewable) with each one, but I am required to raise invoices each week based on teaching hours. I am a music tutor.

Dave_Ham

Do you have fixed hours, or fixed as a minimum hours or days at each?

My initial thoughts are the same, after 1 year and sight of a new one year contract this may be achieveable although will be hard work...

charlotte_rose

Dave_Ham wrote: »

Do you have fixed hours, or fixed as a minimum hours or days at each?

My initial thoughts are the same, after 1 year and sight of a new one year contract this may be achieveable although will be hard work...

for local authorities yes its fixed hours for regular schools. in total I will do 24 hours a week for them over 40-weeks.

the private school hours vary, but I havent done less than 8 hours each week even when school holidays are on. The most I have done in any one week in terms of private work is 15 hours.

Can you give me an idea of the amount I could borrow and rates so I can plug it into my calculations when it comes to looking?

Dave_Ham

To be honest there are way to many variables to be giving out false hope and specific figures to aim at.

Information I can provide is the bigger the deposit the better. At 10% deposit this will be very, very hard to broker.

The devil will be in the detail and the house price expectation and deposit, combined with income will be crucial.

Your credit file will be crucial, so best to look into your Experian & Equifax reports to check everything is all suitable.

Good luck

The_J

Everything Dave says is true. If it was one single contract it would be preferable, the changing nature of the hours means that the lenders get nervous. 1 years history would be a push but something someone may consider if you give them something (i.e. big deposit).

HappyMJ

charlotte_rose wrote: »

for local authorities yes its fixed hours for regular schools. in total I will do 24 hours a week for them over 40-weeks.

the private school hours vary, but I havent done less than 8 hours each week even when school holidays are on. The most I have done in any one week in terms of private work is 15 hours.

Can you give me an idea of the amount I could borrow and rates so I can plug it into my calculations when it comes to looking?

You need to base your calculations on the least. As these are 12 month contracts they are basically the same as a normal full time job so you can count the income from them in full. You should count 8 hours a week as the minimum each week from the private tutoring. Multiply it all together and you will have a gross rate. Deduct your expenses and you have your profit. Multiply that figure into an annual figure then multiply by 3 and you should quite easily borrow that much with a 25% deposit on a house. If you want to borrow more and/or have less deposit then expect a lot more scrutiny on your previous accounts and contracts. The more deposit you have then the more you could potentially borrow if the source of the deposit is from proven regular savings rather than from a windfall.

charlotte_rose

thanks for all the responses. it looks like a very hard ask unless there is a change in lending policy at some point in the future.

Dave_Ham

Do not lose hope, unless you have a 5% deposit or no deposit at which point you are going to struggle...

Good luck....