Interest Only Lifestime Morgage??

Gunstar

The mortgage adviser I visited word for word said "It's because you are self employed."

My income (not turnover) after tax is greater than my friends, the official reason cited by her was as above.

Soot2006

how many years of self-emp accounts do you have?

_Andy_

Still doesn't change the interest only issue

holly_hobby

Gunstar wrote: »

The mortgage adviser I visited word for word said "It's because you are self employed."

My income (not turnover) after tax is greater than my friends, the official reason cited by her was as above.

Rubbish .... I'm telling you its nothing to do with your employment status on its own, and solely to do with the affordability assessment (and/or assessment of books showing a downward trend or other issues of concern) .

I am guessing either your adviser is estate agency or bank based, or covering tracks in failing to spot you wouldn't pass the lenders affordability requirements.

Either way she sounds very inexperienced, or (which is more likely) trying to cover her own errors in failing to correctly assess your affordability before the application was submitted. To which of course a layman wouldn't question an adviser who blamed the decline of their application on the lender being adverse to the employment being self employed, the fact is your application was declined for the requested amount, because your income (net of commitments) isn't sufficient to support it (assuming you have a clean credit record).

Time for an experienced adviser if you still wish to proceed in sourcing a mortgage.

With regards to the IO question, as I say, you'll struggle unless a low LTV and/or an acceptable repayment vehicle in the background.

Hope this helps (sorry if you feel my comments are a bit harsh re your adviser)

Holly x

dunstonh

I can only endorse everything Holly says.

The only bit self employment comes into play is if you dont have three years accounts (less than that can involve manual underwriting decisions or a bespoke calculation) or your income is volatile and the the lender you are looking at uses the lowest of the last three instead of the average of the last three.

So, that is your starting point. After that, they deduct things for employed and self employed people that same way (eg. loans, credit card, cost of living etc).

If your income is showing a continued decline over the years then the lender may err on caution but it would depend on how that stacks up with your overall application (size of deposit compared to valuation, how much other debt you have, living costs, how close you are pushing the lending criteria for that particular lender etc).

However, the fact remains that if all other things are equal and your earnings were the same as the employed person, you could borrow the same.

Gunstar

holly_hobby wrote: »

Rubbish .... I'm telling you its nothing to do with your employment status on its own, and solely to do with the affordability assessment (and/or assessment of books showing a downward trend or other issues of concern) .

I am guessing either your adviser is estate agency or bank based, or covering tracks in failing to spot you wouldn't pass the lenders affordability requirements.

Either way she sounds very inexperienced, or (which is more likely) trying to cover her own errors in failing to correctly assess your affordability before the application was submitted. To which of course a layman wouldn't question an adviser who blamed the decline of their application on the lender being adverse to the employment being self employed, the fact is your application was declined for the requested amount, because your income (net of commitments) isn't sufficient to support it (assuming you have a clean credit record).

Time for an experienced adviser if you still wish to proceed in sourcing a mortgage.

With regards to the IO question, as I say, you'll struggle unless a low LTV and/or an acceptable repayment vehicle in the background.

Hope this helps (sorry if you feel my comments are a bit harsh re your adviser)

Holly x

Hi Holly, not at all! She was recommended by a friend so no offence taken!

I think a more experienced adviser would be a better call!

afly

Self employed (ltd company) for 4 years. Just did an application (nationwide) and they took the avg of the last 2 years or the most recent year, whichever was lower.

Beyond that they treated me like any other customer

The only annoyance i found was that my gross income and my net income are the same as there is no tax due. So a PAYE 20k is around 16k takehome whereas self employed 20k = 20k takehome. But the bank will lend you the same

It's the price you pay im afraid! (or not, depending on how you look at it)