Self employed - first time buyer!

getting-there-slowly

My BIL is 42 years old and self employed and currently renting a 3 bed terrace. Business is currently making a modest profit.

2 questions really, is there certain deposit amount you need when self employed? can he still have a 25 year mortgage?

Many thanks

ACG

You can get a mortgage being self employed with a 10% deposit like anyone. Your income needs to support it though. With a 10% deposit the lender would usually want 3 years accounts and/or SA302's which remain steady or increasing (NOT decreasing profits).

They all calculate the amout they will lend differently. I would generally average the 3 years out and then multiply by 4 to get a rough idea (some go off the lowest of the 3).

HappyMJ

Highly recommended to have at least 25% deposit as they then don't look too deep into the accounts. You'll need at least 2 years accounts...no certified accounts? Then letters from HMRC showing declared profit will do.

getting-there-slowly

Many thanks for the information given, gives me a much clearer idea of what is required.
Kind regards