FTB - Self Employed

Jemelia

Hi,

I wanted to find out if it is possible to do a joint mortgage with my husband that is self-employed, but only has one year of tax return.

I don't particularly want to wait until April. My Salary is 28k and he has a tax return for 21k, but now earns approx. 30k. we have a 20k deposit.

Thanks in advanced for any information.

Senior_Paper_Monitor

Sounds doable (there is a lot of important info missing) - limited choice of lenders, not the cheapest but not ridiculously expensive either

Belmonte

Some lenders will consider you but it is not straight forward.

One option would be to consider lending based on your income alone. Your husband can be named on the mortgage but none of his income would be used to work out your maximum borrowing amount.

Also consider only using part of his income. E.g. work out what your max lending amount would be if he earned only £10K pa. This would mean less than 50% of his last declared years income was used.

If you do want to use part/all of your husbands income most lenders would not be willing to use more than the income level seen at this last full year.

With all self employed people the issue with income is assessing sustainability, which is all the more difficult with self employed individuals.

Sounds like your husband has traded for 5 months since his most recent tax year. Therefore lenders might request an income projection from his accountant based on trading so far, which would of course be an added costs.

ACG

Assuming you have 15% there will be 1 or 2 lenders but you will need a broker.

Jemelia

Thanks for the replies.

I made a mistake in my initial post. My husband does in fact have 2 years of tax returns, however the 1st year is only 2 months worth, because of when he started as self employed. So that is only about 3k.

We are looking for a property for 160k max if possible.

amnblog

Looks like you will have to wait in any case Jemelia.

You will need a minimum 24K deposit in all probability.

northernsaver

Different mortgage companies want different things. I used to work for a Bank and if the customer didn't have 3 years, an estimate from an accountant would do - or they'd just take half of his wage - goes hand in hand with if everything else on the account looks good (debts etc)

amnblog

Lenders criteria is clearly defined in the current market.

Estimates are not used except in extremely rare cases.

Jemelia

amnblog wrote: »

Looks like you will have to wait in any case Jemelia.

You will need a minimum 24K deposit in all probability.

24k after a new tax year?

Wh05apk

Potentially it should be do-able, based on your income may get up to £140k, some lenders will accept 1 years account as well subject to credit score.

A good broker should have no issues here.