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

bowdeni

I've got three years and it's been a nightmare still. Recommend having an accountant, and doing all of your tax returns the moment you're able to.

AliceBanned

HappyMJ wrote: »

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.

Not necessarily - depends on the age and condition of the property when you buy it. I bought a 12 year old flat recently and don't foresee any of these expenses coming up for at least two or three years, even longer. I suppose it's quite different for a house but I pay a maintenance fee of £110 per month for all the buildings insurance, garden and outside maintenance, hallways etc. So in terms of large costs coming up well unless the boiler breaks down there's nothing I need to do to the flat at all.

Thrugelmir

b3csy wrote: »

oh god I didn't realise it was this hard....thing is we haven't saved our deposit.....

Saving is a good disclipline. Gets you used to the fact that for the next 25 years( 300 months) you'll need to make on time payments. As you've been lucky enough to be gifted some money. Use it as a base to build on.

JPB123

amnblog wrote: »

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

Think again.

I do. But Like amnblog says, try a broker.

I am an Independent Mortgage Adviser

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.

claire_n037

b3csy wrote: »

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.

We were in the same boat as you, I work full time as a teacher, my partner is a self employed joiner with only 15months accounts.

We are FTB and have just had a mortgage approved by Halfiax. The only problem is it is just in my name. The reason being no one would lend us the amount we needed with both of us on. Our broker told us this was because if my partner was added to the mortgage but did not have an income that could be included in the application he would then be classed as a dependent on me which would then also lower what I could borrow.

We have a fixed mortgage for 2 years and once that is up we will add him on as he will then have 3 years accounts.

hope that helps x

dktreesea

It's going to be harder for anyone relying on self employed income to get a mortgage now, since the new rules for mortgage lending came into force on the 26th of April this year. Previously, brokers could assess affordability but now, even if the applicants come via a broker, it is the bank's responsibility to directly assess affordability.

Also, banks have to stress test the mortgage, as in what would happen to the affordability if interest rates went up but your income stayed the same. Previously this wasn't necessary because the banks could rely on wages inflation to protect the ongoing affordability of the mortgage, even if interest rates were to rise.

There's quite a good overview of the new rules here:
https://www.turnkeymortgages.co.uk/mortgage-advice/mortgages/getting-a-mortgage/apply-under-new-mortgage-rules/

All of this seems to be contributing to the current trend of requiring higher deposits and lowering the multiplier for incomes, particularly for those on a lower income.

Having said that, if your bank is also the one where you have your business account, and they can see the revenue flowing into that account month in month out, particularly if it is growing over time, they seem to be much more amenable to lending to you in general, including for a mortgage.

The best mortgage product at our bank for people relying on self employed income at the moment is 1.99% fixed for two years, thereafter a percentage over the base rate, (lifetime tracker), but the lowest LTV ratio for that product was 60%.

amnblog

B3csy - the reason you are getting nowhere is that you are not doing what I suggested and consulting a broker.