Joint Employed & Self Employed Mortgage App

MrRichardWoods

Hi MSE Forumers...

This is my 'maiden' post - I just want to get some advice on mortgages if anyone can help?

I am 25 years old and employed on a £30k salary. I bought a 40% share in a £245,000 property in May 2011 (on my own) but my partner and I would like to buy the remaining 60% share together (as a joint application.)

My mortgage is currently with Santander on the 4.74%SVR. This would all be absolutely fine, except my partner has recently gone 'Self Employed' (of sorts). He is working for a company in New York but based in London, he has an employment contract, a set salary of £38k so in essence he is employed, except he pays his own tax and has to do a tax return at the end of the year (I presume).

Neither of us have debts and we have £20k savings to put down on the further 60% share but obviously he hasn't got his first year accounts yet... How would this work? He does have a contract with his employer with a set salary - does that count for anything? I'm employed and have a steady income and ultimately we earn £68k collectively.

Any advice would be very much appreciated!

Best Wishes

Richard

amnblog

Hi Richard

Is your partner being paid in the UK and will he be paying UK tax?

If so it sounds like he is contracting to this company.

MrRichardWoods

Hi There

Thanks for the quick response! Yes, he is being paid into his UK current account and will be paying UK Tax and NI. You're right, he is contracting to this company - how does this work with mortgages? Will it be easier to get a mortgage together as I am employed and he is contracting than all the horror stories I read with self-employed individuals needing 3 years accounts etc?

amnblog

Not exactly horror stories Richard, it is just the way it is.

There are sometimes more generous options for some contractors based on their contracted day rate. But even these are based on some kind of track record as a contractor.

It sounds to me like you will need to wait for a least a year and perhaps you should. You might both be in New York this time next year!

MrRichardWoods

Thanks again for the clarity and help. Perhaps we will wait and year and see how things go... I certainly won't be moving to New York any time soon, though!

Best Wishes

Richard

amnblog

You are already in the property anyway Richard so I suspect the benefits of action this year as against next are minimal.

Make sure you get your all expenses paid trip, even if you are not moving.