Self Employed Mortgage - 1 Years Accounts

Mrproperty

Hi All,

I wanted to provide some examples to see your opinions on the following mortgage situation.

Individual Situation
- Director of limited company, with 1 years accounts filed. 100k profit showing in LTD account.
- The director has also taken 45k via dividends and salary.
- The director has 45k personal savings as well as the above dividends and salary.
- The next year is going to be profitable and this can be verified by an account
- First time buyer who is under 25

Mortgage/Property
- 200k property in a good area
- 35 - 45% deposit = 70k to 90k

The stats seem good but what are the chances of this person securing a mortgage easily?

Also, is there anyway, (guarantor, joint mortgage, mortgage transfer, projected income) that this director could get a mortgage before the 1st years accounts are filed.

Thanks for all your help.

amnblog

With the right lender this can we done - only a few lenders will work from one year's self employed income.

Mortgage_Mark_2

As above - certain lenders only - almost exclusively on salary + dividends with only 1yr accounts too.

Broker would be a good idea, I would suggest.

EDIT: No, you won't get a mortgage solely based on that income (or 'needing' that income at all) without the first year of accounts.

ACG

Once you have 1 years accounts from a qualified accountant and/or self assessment there will be lenders who will do this. Possibly high street rates maybe a touch above depending on the finer details.

Mrproperty

Thanks for the replies all. Have now spoke with various mortgage brokers and got some advice too. Thanks!

NObrien

A self employed person getting mortgage is not an easy task. Only few mortgage lenders offer loan to self employed. This is because there is guarantee of income for self employed people. One of the firms that I know which provide loans to self employed is the Northwood Mortgages in Toronto. They offer loan provisions for people who are self employed. Since you have already spoken with few of the advisers ask for their rates and make a decision.

amnblog

NObrien wrote: »

A self employed person getting mortgage is not an easy task. Only few mortgage lenders offer loan to self employed. This is because there is guarantee of income for self employed people. One of the firms that I know which provide loans to self employed is the Northwood Mortgages in Toronto. They offer loan provisions for people who are self employed. Since you have already spoken with few of the advisers ask for their rates and make a decision.

Very useful - we will all bear this in mind the next time we are buying a home in Ontario.