self employed or not and what are our chances?

dktreesea

With a combined income of £64k, I would have thought you would be able to borrow 3 to 4 times earnings. One issue, as I see it, is how long your husband would be needing to draw down his salary for the bank to see it as his normal income. The other one will be what equity you can put towards the new purchase.

I think you will get a mortgage eventually, but it could take some patience. If you could save a good amount each month, just to show the bank you are living well within your means, and open a better account than a basic account, so even though you would have monthly account fees, this can be really good for getting a mortgage, because it should give you an interest rate discount. At our bank the £12.95 fee, which includes travel insurance and breakdown cover, both of which we would have bought anyway, so no real cost to us, is worth 0.5% a year reduction in the interest rate, plus also has a very low application fee.

If the business account is with the bank and they can see the revenue flowing into it, so much the better. It's a myth that all self employed people find it hard to get unsecured loans, let alone mortgages.

Let_Us_See

There is no myth for self-employed people seeking a mortgage - they simply have to meet lender's criteria. They either do, or they don't. Personally, I believe you should stick to opening bank accounts and flogging travel and breakdown insurance as you clearly do not understand the basic mortgage criteria for the self-employed or the correlation between inward investment, drawing a salary and company profitability.

Thrugelmir

borokat wrote: »

My husband has been self employed for a couple of years and his business has made a small loss in both years.

and now is making sufficient profit to pay £64k in wages?