Self Employed Mortgage

Salvage_Hunter

Hi

I am recently self employed (9 months) and wondered what type of information a mortgage lender will require when applying for a mortgage? Over the last 9 months I have been doing regular work for a company, averaging 3 to 5 days per week. Can this company write a reference letter that will be accepted by the mortgage lender? I will be working for this company for the forseable future on the same basis, 3 to 5 days a week. I would also like to rent out my existing property on which I have a mortage. The new mortgage would be used to buy another property with my partner who has a full time job in the NHS.

Many thanks

bigadaj

You really need three years of good accounts.if you're only working for one company then hmrc would often consider you to be employed by that company. And hit all involved with a tax bill, though this might solve your self employment issues re mortgage.

ACG

There isnt enough info to make an informed decision here.

How much is outstanding on your current property? How much is it valued at?
Your self employed, do you have a contract that guarantees you a minimum 3 days work a week? If so, you may be able to get a mortgage on the back of that. Is your partner going on the mortgage? If so then that will boost what you can borrow.

How much deposit do you have?
How much are your 2 incomes (separately)?
How much are you hoping to buy for?

Salvage_Hunter

Hi

I have 90k oustanding on my current property and its valued at 140k. Partner is going on the mortgage. We have a 60k deposit for a 200k house. My present income is 20k, my partners is 30k.

I hope these figures are of some help

ladystow

Well my husband and I are in a similar position. He has been freelance since Jan but only works for one company and has a contract with them for 18 months working 5 days a week. I have been told by everyone (including a mortgage broker who helps self employed people) that no company will give us a mortgage until he's got at least 1 years accounts

kingstreet

If he has a contract for a set period of time at a fixed hourly price, he is a contractor and that is acceptable. I have a similar case on the go at the moment. The lender has asked for a copy of the contract and the applicant's CV so their track record in their field can be checked.

Typically, the self-employed have to produce accounts or SA302s for at least two years.

YoungBusinessman

It really does take at least one years, two better, 3+ means hardly any lender wont refuse you outright from the off.

ACG

It doesnt.

There are lenders who will offer a mortgage with less than one years accounts. It wont be on 2-3% interest rates like were seeing on the high street but i certainly wouldnt discount the chance of getting a mortgage just yet.