Mortgage for self employed

Wooly1

Since buying our house in 2004 my husband has gone self employed, I think it may have been in 2008. We also changed the company to ltd this year.

We now need to move house as we have had 2 children since buying this one and are feeling a little more space in needed!

Do I need to look at particular mortgage products? Where do I start? Is more difficult for a self employed person to get a mortgage now?

I would really appreciate if someone could give me a few pointers on where to start looking and what evidence of income we require.

Thank you

kingstreet

There are no specific products.

You need to find lenders willing to accept the situation, or appoint a broker (whole market) to do that for you.

Lenders typically accept two or three years' SA302s from HMRC to evidence income, so if he's simply incorporated from being a sole trader this may have little impact, depending on the loan to value and other aspects of the case.

whitewing

When I remortgaged this year, I was told by the bank that I had been self employed long enough for them to treat it like employed. (Obviously I still had to produce accounts). So I don't actually know what it meant, but it sounded like an advantage!

Wooly1

That's useful to know, thank you.
I think we will have about 20%-25% of the purchase price of the new house, hopefully that is good!
Also, do you know anything about how the help to buy scheme could help? Would we be able to use this as we won't be first time buyers. Sorry I know little about these things. Does the mortgage lender still lend this money or do you have a separate loan from the government to repay this?

theEnd

Having just gone through it, I would advise a broker.

Got turned down the initially, then got a broker who picked the right product, asked the right questions and filled in all the forms.

Cost me £200 extra.

Wooly1

Thank you! Nice to know there's some hope! We have been worried we would struggle to find a deal. Will try to find a broker to chat to.

kingstreet

Wooly1 wrote: »

That's useful to know, thank you.
I think we will have about 20%-25% of the purchase price of the new house, hopefully that is good!
Also, do you know anything about how the help to buy scheme could help? Would we be able to use this as we won't be first time buyers. Sorry I know little about these things. Does the mortgage lender still lend this money or do you have a separate loan from the government to repay this?

If you buy a newbuild, you can take advantage of the equity loan of upto 20% of the price of the property.

This is a loan from the Government. It is not available on second-hand homes.

hotyogabunny

whitewing wrote: »

When I remortgaged this year, I was told by the bank that I had been self employed long enough for them to treat it like employed. (Obviously I still had to produce accounts). So I don't actually know what it meant, but it sounded like an advantage!

I love the sound of THIS! :j

May I ask how long that would be? Got 10 years self employed books but only a couple of years at the more recent higher rate.

This forum is fab! :money:

whitewing

hotyogabunny wrote: »

I love the sound of THIS! :j

May I ask how long that would be? Got 10 years self employed books but only a couple of years at the more recent higher rate.

This forum is fab! :money:

Not as long as you.

deejaybee

I too would agree with the opinions to go with broker.

I am self employed ( had 2 yrs sa302 ) and after 2 initial rejections from Santander & nationwide ( to be fair, rejections were not 100% to do with being S/E ) found a broker from 2 separate local recommendations, who very efficiently sorted me out a deal with Woolwich.

Would highly recommend the broker I used, he covers South Hams/ South Devon area . PM me for details ( if that is allowed on here ? )

amnblog

whitewing wrote: »

When I remortgaged this year, I was told by the bank that I had been self employed long enough for them to treat it like employed. (Obviously I still had to produce accounts). So I don't actually know what it meant, but it sounded like an advantage!

Sounds more like flannel. If you are producing accounts they are treating you as self employed.