How to get a mortgage when 1 person is self employed with 1 years books?

b3csy

Hi everyone,

Me and my partner are wanting to get a mortgage very soon as the house we currently rent has been sold.

we are coming across many hurdles though :mad::mad::mad: here is the situation....

my partner works full time, and I work part time and im self employed. I have only been self employed for 1 year so only have 1 years worth of books and so finding all lenders are saying no to me, but my partner on his own can't get much with me living in the house as they see this as he has to support me as well!! we are also getting very low quotes like £70K which wont buy us much at all around here. I know we can more than afford the house we would like to buy with the monthly quotes we've had but they just don't see it like that....

so the question is how can we get more and how can we get both of us on...or just one with a higher amount?

I hope this makes sense?

Thanks in advance.

amnblog

Approach the right lender = engage the right mortgage broker - if your trading figures are good enough and you have 15% deposit there are options.

b3csy

The thing its finding the correct lender, as been to so many and we get told a low figure by most....my trading figures are not that good but I know how much spare cash we have left after all our bills and know we can afford more....

b3csy

We are also looking at doing the help to buy equity loan scheme as well.

amnblog

I don't know of any lenders that will take 1 years figures with EL scheme.

Think again.

HappyMJ

The more deposit (where you can prove how you saved for it) you have the better your chance of being approved.

The chance of you being approved with an equity loan is greatly reduced.

b3csy

oh god I didn't realise it was this hard....thing is we haven't saved our deposit...we have been given it and would be around £15k is there any way around this at all?
most of the calculators I've been on said the monthly payment would only be £550 a month which is what were paying in rent now, so I just do get how they can just turn us away like that....

HappyMJ

b3csy wrote: »

oh god I didn't realise it was this hard....thing is we haven't saved our deposit...we have been given it and would be around £15k is there any way around this at all?
most of the calculators I've been on said the monthly payment would only be £550 a month which is what were paying in rent now, so I just do get how they can just turn us away like that....

Yes...over the next year save everything you earn and use the £15k gifted to you for living expenses. You should then have proof you've "saved" £15k.

Owning a house costs much more than the monthly mortgage payment. Generally with no deposit renting is cheaper in the short term.

b3csy

yeah that's a good plan to save the money....obviously I know it costs more that just the mortgage but we still have the same bills when renting...i.e council tax and insurance, the only extra we should have is buildings and life insurance, as ive had a mortgage before many years ago but with a shared ownership. but things was so much easier to get then haha

HappyMJ

b3csy wrote: »

yeah that's a good plan to save the money....obviously I know it costs more that just the mortgage but we still have the same bills when renting...i.e council tax and insurance, the only extra we should have is buildings and life insurance, as ive had a mortgage before many years ago but with a shared ownership. but things was so much easier to get then haha

plus gas safety certificates, gas appliance servicing and eventual replacement (either self funded or under an insurance contract), property maintenance such as regular painting, carpet replacement, kitchen replacement, roof replacement...etc...all things that the landlord does for no cost to the tenant.

b3csy

quite true....looks like were stuck renting then.....