Self Employed and Seeking a Decent Mortgage

maddyross

I've just started researching into mortgages for a significant house/business move in 2013/2014. I've been self employed for just over 10 years but the last time I applied for a mortgage was almost 7 years ago and before criteria became so strict.

The last three years of my books show substantial growth with the present year being the healthiest, next years projection also follows the same growth trend. We should also have a decent deposit to put down.

I'm in need of any advice and direction from people who are in/have been in a similar position to me. This next move is almost certainly going to be our home and place of business for the next twenty to thirty years, so I would hate to restrict my borrowing potential just because I presented my criteria in the wrong format.

I'm currently trawling through mortgage broker sites but am reluctant to invest my time in a poor quality broker, so any recommendations on specialist, successful brokers would be hugely appreciated.

We also have four young children and I've read on a few sites that this can really work against us, some sites are stating up to 50% less borrowing, which is rather scary. So any advice on how to deal with this would be gratefully received too.

Thanks

Simon_gloster

Just posted on another thread around directors etc.

Sel employed people obtaining mortgages are not difficult. The only figures you need to have ready are tue amounts of combined income declared to hmrc for yor prsonal wealth. Most lenders prefer this format.

As for tje 4 kids and 50% thing, all lenders will vary however your right in thinkiny this is likely to hold you back a fair bit.

ACG

The 4 kids part, i agree with the above. Dont worry about that at this stage.

You dont say how much you are looking to borrow or how much your income is and your deposit so its difficult to give an indication.

However, you have said your looking for a place you can work from and live in.... this could very well need to go to a commercial broker (higher rates and fees) unless you can get the deeds split, which isnt cheap.

EDIT:
You could look at maybe a commercial or bridging loan whilst you split the deeds, then get a regular mortgage on the home part.

I think for this you might need to speak to a solicitor, mortgage and commercial mortgage broker just to have a look at your options.

harvey115

To be honest, although majority of people would go direct to the lender for a mortgage. Going through a good broker will not hurt either, I would think you may get possibly a better deal then going direct and less hassle when the time gets critical.

The broker will be able to put your case in a far better format for the underwriters to look at then the in branch advisers.

uksavergirl

We are in a similar position but don't yet have 3 years accounts. I think we will have about 25% of the price we would like to pay for our next house as deposit, possibly more. We have always been in profit over the last year, but had some ups and some downs. We will be using the place we buy for both business and home life. We want to buy soon ideally, but are concerned that this is not going to be possible.

Conrad

There are all sorts of legitimite tricks of the trade that a good broker employs, for example putting stock assets back into the bottom line.

All I can say is find a good broker who can work with your Accountant to achieve your ends. Far far too complex to get into all the possibilities and permuations here, I'd need 2 days to write the post!

uksavergirl

Conrad wrote: »

There are all sorts of legitimite tricks of the trade that a good broker employs, for example putting stock assets back into the bottom line.

All I can say is find a good broker who can work with your Accountant to achieve your ends. Far far too complex to get into all the possibilities and permuations here, I'd need 2 days to write the post!

Something I hadn't even considered and wasn't even aware of. I will look into it though, so thanks...