Self Employed Mortgage

leopard01

Hi,

I'm after some advice regarding where we stand with getting a mortgage.

My boyfriend has been self employed for a year and will be submitting his first full year of accounts in April, whilst I'm employed full time. We then want to start the mortgage process as soon as possible.

We are looking at houses ranging between £130,000 and £150,000 and will have a 20% deposit.

We spoke to an independent mortgage advisor last month who confirmed that we would have to wait until after we file my boyfriend's tax return before we could proceed any further (which we already knew). The advisor didn't seem to think there would be an issue with us getting a mortgage, however I know that only 1 year of accounts when self-employed is not ideal and my sister has since had some issues with the company this mortgage advisor works for after initial successful correspondence with them.

The advisor stated he had a provider in mind for us (Kensingtons - reviews don't look good on the from what I've seen though).

I'm just after some other people's thoughts please as to whether we're likely to be successful.

Thanks.

amnblog

Kensington is one provider for this scenario but not the only one.

With one year's trading you do have limited choice.

If you are not comfortable with this broker use another.

leopard01

Thanks for your response amnblog.

I am looking at other mortgage advisors in the area. I'm also going to contact the one we've previously spoken to again and have another chat with him.

I've read that Halifax consider applicants with 1 year of accounts. I assume if our advisor thought we'd likely be accepted by them he would suggest them but so far they haven't been mentioned.

Has anyone got any experience of getting a mortgage with Halifax when self-employed?

ACG

Halifax may accept one years, but they may come back and require more.
There are a handful of lenders who would look at it but other than halifax none are on the high street.

Mortgage_Mark_2

^ As above - Halifax are an option with 1yr of accounts however you need the rest of the case to be absolutely squeaky clean, and they will still come back and ask for the earth from accountants etc, it's not an ideal solution.

There are others however which are far more straightforward, and probably not many more known that Kensington.

Shielder

Check online for contractor mortgages. There are a few brokers that deal exclusively with contractors and the self employed, so they will be better to talk to than the EA advisor.

Generally, the 'self-employed' don't fit into the boxes on the computer in the EA, so they fudge the numbers and hope...

Andy

Car1980

Everything depends on your SA302 form.

Your boyfriend needs to appreciate if he tells the taxman he earns £20k and has £10k worth of expenses, your SA302 will say he only earns £10k.

Be very careful about your calculations and appreciate that if you want a mortgage, you will have to suffer the short term pain of paying a heap of tax you may not have had to pay in any other year.