Trying to downsize house/mortgage, but self employed as of 18 months and struggling..

DIYDumbo

I am in the throes of selling my house and downsizing to a flat. When I put my house on the market I rang my current lender and they assured me that even though I'm relatively newly self employed, that reducing my mortgage by nearly two thirds wouldn't be a problem as I've banked with them and had a mortgage for years.

So, I've accepted an offer on my house, and have had an offer on a flat accepted.

Apply to current lender for downsized mortgage and they say 'I don't fit the criteria'.

I have never had any adverse credit, I have no debt apart from the mortgage and have a small amount of savings.

I have taken advice from 3 different Financial Advisor. 2 pretty much said the same thing, that I need 2 -3yrs full self employed accounts and that any employed (PAYE) earnings won't be taken into account. (I have supplemented my self employed earnings with employed part time work).

The 3rd chap seems a bit more positive about things and has asked me to obtain SA302 documents from HMRC to prove (hopefully) my earnings to a lender.

Am I going to be able to get a mortgage at all? It seems madness that my current bank won't let me sell my house and downsize. I don't want MORE mortgage debt, I want a LOT LESS!

ACG

How much was your income on your SA302/last years accounts?

How much is the new property purchase price?
How much is the mortgage for?

Its not impossible to do with just one years accounts, your unlikely to be getting market leading rates but it is possible.

Thrugelmir

DIYDumbo wrote: »

Am I going to be able to get a mortgage at all? It seems madness that my current bank won't let me sell my house and downsize. I don't want MORE mortgage debt, I want a LOT LESS!

Your current lender may well prefer that you remortgage elsewhere.