Mortgage

matt_2013

Hi,

I'm a first time buyer looking to get a mortgage. It looks like there's a strong chance I may get made redundant soon.

I will be able to get work after this job but it's mostly likely to be freelance.

When working on paye I understand it's much easier to get a mortgage then being self employed. Do you think it's worth me getting a mortgage promise while I still have a job?

If I was to later get made redundant but still had the promise could the mortgage still go through or would they re-check with my employer that I am still on paye?

Also when being self employed I think you need to show 2 years of books, earning the correct amount of money and a year's fore cast going forwards? Can the previous 2 years be a mixture of self employment and paye? or does it have to be pure Self employment?

many thanks,
Matt

kingstreet

During the processing of a mortgage application, any change in material facts has to be disclosed to the lender, right up to completion.

Getting an AIP is not going to guarantee you a mortgage if you lose your job. Not even a mortgage offer will do that; only completing a house purchase and starting the mortgage will do that.

Self employed you'll need at least one year's accounts to get a mortgage and that will be based on your net profit, but for a choice of lenders you'll need at least two.

matt_2013

thanks for that.. it's very helpful..

If I am self employed and have 2 years of accounts with some paye within those 2 years? would that count?

thanks,
Matt

kingstreet

Yes. Lenders also accept SA302s from HMRC to prove your income.