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Mortgage taking into account future profits?
Farmergirl
Posts: 2 Newbie
Hi all,
This is my first post but hoping for some guidance.
I have just sold my house with a view to moving up the property ladder. My existing lender has given me an agreement in principal but it is a little short of what I was hoping. The complication is that I am an accountant who has worked for the same firm for ten years though was made a partner two years ago. The lender is fine with only two years self employed books as it is the same firm.
The lender is basing the mortgage offer on my previous earnings, which is as expected. However, I have explained that my income is now on an upwards trend and over the next few years will increase considerably as my profit share increases. They say that they cant factor this in to my current application though. I can afford the repayments on the amount I would like to borrow now.
My question is will any lenders factor in future earning potential if you are self employed? The accountancy firm is a long established business and I could a letter from the other partners confirming the position if required.
Thank you in advance.
This is my first post but hoping for some guidance.
I have just sold my house with a view to moving up the property ladder. My existing lender has given me an agreement in principal but it is a little short of what I was hoping. The complication is that I am an accountant who has worked for the same firm for ten years though was made a partner two years ago. The lender is fine with only two years self employed books as it is the same firm.
The lender is basing the mortgage offer on my previous earnings, which is as expected. However, I have explained that my income is now on an upwards trend and over the next few years will increase considerably as my profit share increases. They say that they cant factor this in to my current application though. I can afford the repayments on the amount I would like to borrow now.
My question is will any lenders factor in future earning potential if you are self employed? The accountancy firm is a long established business and I could a letter from the other partners confirming the position if required.
Thank you in advance.
0
Comments
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No. No lender uses future income/earnings.
You should find a lender with the higher income multiples you might need.
If 5x earnings is enough, there are several high street options and a broker can establish which has the best deal for you.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Farmergirl wrote: »My question is will any lenders factor in future earning potential if you are self employed?
There's one certainty in life, and that's that there is no certainty.
Any potential borrower could argue that their income will rise in the future.0 -
Many thanks, I thought that would be the case. I think a broker may be the best option.0
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We could potentially place this for you if.
1. The partnership has sufficient provable profit
2. Your share of income from the partnership in the coming years is a given.
We do this type of thing regularly.
Therefore you just need to find a broker with the experience to do this for you.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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