Newly Self Employed

Lu123

Hello,

My husband and I are selling our property on the 20th of this month. I set up my own business in January of this year and I am taking home the same wage as I did at my previous employment. We are selling a flat and looking to buy a house - we are intending to buy a house that it is slightly cheaper than our flat (have about a 25% deposit). As I have been self-employed for only a few months we are finding it extremely difficult to get a mortgage.

We are currently with Leeds and they have said that we may be able to port our mortgage, however, we would need to buy on the 20th and even then we can't get an appointment to speak with them until the 9th (they have confirmed this would not be enough time).

Just wondered if anyone had any help/advice - it would be much appreciated!

Thanks,

Lu

Gonzo33

Can your husband afford the new mortgage on his own salary? You can still be on the mortgage if this is the case.

kingstreet

I don't know of any lender which will take into account the self-employed earnings of someone with such a short trading history.

You can only port the rate from your old mortgage if you qualify for a new mortgage with your lender. There is no guarantee conferred by portability and you have to meet the lender's current criteria and affordability requirements just like any other borrower.

Lu123

Thanks for the replies. Unfortunately my husband's salary wouldn't cover the mortgage for the property we have in mind.

Am I right in thinking that guarantor mortgages are not really done any more?

Thanks,

Lu

kingstreet

There are one or two guarantor products around, but when you consider someone has to guarantee the whole mortgage payment for the whole term, not may guarantors can do that, especially parents who are normally too close to retirement.

Lu123

Thanks - do you know the lenders that do these? I might as well give them a try.

Thanks,

Lu

kingstreet

I suggest speaking to an independent broker who may be able to suggest the best route for your particular circumstances.

Mortgage_Mark_2

Out of interest are you working through a company as a contractor? That opens up a whole host of other opportunities.

If it's just the conventional 'new business' route, then as kingstreet says, you're going to struggle...