Mortgage for the self employed

Phil_rich

Good morning,

I am having trouble finding a mortgage company that will consider me for a mortgage as I am newly self-employed (9 months) so cannot show previous accounts. Even though my income has doubled since making the switch, and I previously had a 5x salary mortgage before?!?

Is there anyone out there who is flexible and better for this situation?

Thanks
Phil

ACG

No lender will do it without seeing any accounts.

You need atleast 1 years accounts - thats presuming you have a 25% deposit.
If you dont have 25% then you will need to wait for 2 or even 3 years worth of accounts.

Phil_rich

Yes we do have a 25% deposit.

harvey115

If you have ongoing contract with a single client (i.e. you are contracting), then you have a chance without having accounts.

Which market do you work in and is your business income is mostly connected to one client? Do you have an on going 6 months rolling contract or similar?

ACG

Harvey raises a good point.
If not then you will have to hold off until your accounts are done.

Phil_rich

No rolling contracts, every job is on a job for job basis and my workload is spread over 6 or 7 different clients. Working in the construction industry as a draughtsman.

I can only show incomes as self emplyed for past 9 months plus orders I have in place for works due to start in the future.

Looks like it will be a case of waiting another year, just seems like nonsense, if I was employed on the same income and had started the job yesterday then I would qualify?! What makes it worse is the fact that the rent we pay is more that the mortgage we want, per month.

koexelek

Phil_rich wrote: »

Looks like it will be a case of waiting another year, just seems like nonsense, if I was employed on the same income and had started the job yesterday then I would qualify?! What makes it worse is the fact that the rent we pay is more that the mortgage we want, per month.

The self employed ( I can say it being self employed myself) are very much second class citizens as far as mortgage lenders are concerned, I'm afraid.

As you say, if you were employed they would do it.... although there could be the risk of you being made redundant the day after your new mortgage started.
Self employed people have to plan a long way ahead and are in control of their own destiny, so would not normally take on a commitment they did not think they would be able to fulfill.

harvey115

Self employed are definitely considered second class citizens for sure (I am one as well). What can I say, its never a fair society...

ACG

You dont have to wait another year. Just 3 months then however long it takes for your accountant to get your accounts back to you.