Self Employed? - HSBC

alan01-19

Looking for some advice.

I am self employed and about to move home. I currently have an HSBC mortgage which I have had for the last 5 years with a lifetime tracker mortgage at +0.39 above the base rate.

The mortgage I am on, allows me to port it to another property and was advised by HSBC that I need to go through a new application despite wanting less money - about 40k mortgage on a property that is valued at 200k.

Quick questions:

1) I am 50% shareholder within a company and I have a contract along with taking a monthly salary. I am not 100% certain if I fall under being self employed. Does anyone know how HSBC determine's this?

2) Will being a 50% shareholder cause problems?

3) I will obviously try to keep my HSBC mortgage, however if I do run into trouble I was wondering if anyone could provide any good alternatives to HSBC in terms of lenders who look favourably on self employed applicants?

kingstreet

You can only port the rate from your old mortgage, if you meet the lender's criteria and affordability for a new one.

HSBC will take your last two years' SA302s to evidence your net profit and will average it.

It does not take into account any contract.

Consult an independent broker. It sounds like your make-up doesn't suit many lenders' square page, square hole mentality.

alan01-19

Thanks for the reply, but I am not sure how HSBC determine if I am self employed or not?

kingstreet

Like most lenders, if you are a sole trader, partner or own more than 20% of the equity in a limited company you are treated as self-employed.

alan01-19

So if I got rid of my shares, and advised that an employee in the company would that work?

GMS

Lenders are aware of all the tricks.

alan01-19

GMS - that is what I thought.

Would anyone recommend a good self employed mortgage provider?