Self employed - what do I need to apply for a mortgage?

liamcov

Self employed - what do I need to apply for a mortgage?

opinions4u

2-3 years of accounts and a deposit would be a start.

ACG

I would personally request the last 2-3 years SA302' these can be requested from HMRC directly for free and take around a week or 2 to arrive. Alternatively if you have an accountant they can request them for you (your accountant may charge... personally mine doesnt but some may).

Also 3 months Personal bank statements, some form of ID and proof of address - that should be enough to get you started.

lee-h

I have a limited company (100% ownership) liamcov and only 1 year of accounts, I'd recommend going to a good mortgage broker who knows the market. I should be getting my offer through today from Halifax but have had no issues at all - they asked for invoices, bank statements (personal & business) and my contracts (annual) I work in IT and they seem happy with all that. I was in permanent employment before that and never had employment gaps (past 5-6 years)

liamcov

I have only been self employed this past year so this will be my first self assessment in Jan (earnings approx £50k) but previous years paid employment I was earning just £6-8,000. How will this effect things?

ACG

Your going to be fairly limited in terms of lenders available.
You will need a minimum 15% deposit.
I think you need to go and speak to a broker as i cant think of any high street lenders who will look at you with 1 years accounts.
That does not mean high rates, but it does mean your not going to be getting market leading rates.

liamcov

ACG wrote: »

Your going to be fairly limited in terms of lenders available.
You will need a minimum 15% deposit.
I think you need to go and speak to a broker as i cant think of any high street lenders who will look at you with 1 years accounts.
That does not mean high rates, but it does mean your not going to be getting market leading rates.

Thanks. I will have around £70,000 for a deposit by next tax year, how does that change things? Also where do I find brokers and what do they do?

ACG

How much does £70k represent as a percentage?
So long as it is 15% plus you should be ok. If it goes to 25% then you will have more options available, the next big step is at 40% deposit.

Mortgage Brokers/Mortgage Advisors - we basically search lenders and find the best deal we can for your circumstances. As you will have one years accounts, its not a case of nipping into a bank and making an application as you will not fit many (if any) high street lenders standard criteria.

As for finding one, you could ask friends/family. If not, then searching google. All i would say is is avoid estate agent based brokers - they are employed by the estate agents or are taking a cut of anything earned, you can never be sure they're working in your best interests.