Partner in Firm - Still Get a Mortgage?

RoxieW

Hello there

I'd be grateful for any help I can get from someone in the know.

We're getting ready to move house and increase our mortgage - however we have six months to wait as I have been running my own business for 18 mths and so need two years accounts.

We were waiting patiently, decorating etc - and saving - when my husbands boss dropped the bombshell that he wants to make him partner in the firm that he works for.

Great news, as it means (fingers crossed) more money etc, however as he will now be classed as self-employed (on profit share rather than a fixed income) I'm worrying about the mortgage.

Will we now have to wait another two years until OH has been self-employed two years? Or will the bank let us submit the last two year's business accounts? (The business has been running over 30 years, successfully, and my husband has worked there for ten years).

We don't want to start applying for mortgages in six mths time to have them refused. Anyone have any idea what the situation is likely to be?

Many thanks

RoxieW

anyone?
thanks

pwllbwdr

I'm a partner in a consultancy and it didn't cause me any problems. That was however a few years ago, so things might have changed. All I had to provide was partnershp accounts going back a couple of years together with a document indicating what partnership share was on offer.

Jimbo1976

How many other partners are there?

Whilst i understand your concerns about your husband becoming "self employed" most lenders would say if he owns less than 20-25% of the business then he is employed.

here is nationwide's employed/self employed criteria

http://www.nationwide-intermediary.co.uk/lendingcriteria/general/employment

Here is Halifax's

http://www.halifax-intermediaries.co.uk/criteria/mortgage/default.aspx?filter=S

So I don't think you will need to wait once your own accounts are ready

betmunch

Why not get the mortgage from a lender that only requires 1 years accounts?

This is obviously before he agrees to become a partner in the firm

nufc_fan

Which lenders are you aware of that do look for 1 years accounts?

harvey115

Correct me if I am wrong, but your husband has just become a partner of an already running business and its not a start-up. I believe even though your husband has not been a partner for the past 3 years, you can surely use the existing last 3 years accounts of the business as a whole to supply.

The Lender is more interested in the way business is performing, then then the previous involvements of your husband in the company.

Hope this helps.