I need help- 24, self employed looking for a mortgage

Astarblond

Hello 😊

I'm busy trying to save for my firsT mortgage. By the end of this year I hope to have close to £8000 saved.
But after speaking to a few of my customers I've realised that as I am self employed it is going to be harder for me to get a mortgage of my own. I've been self employed for four years in September.

This is a complete mine field for me and I don't know what I need to know or who I need to speak to ask for help


Could someone please point me in the right direction

Many thanks
Alice

19lottie82

Astarblond wrote: »

Hello 😊

I'm busy trying to save for my firsT mortgage. By the end of this year I hope to have close to £8000 saved.
But after speaking to a few of my customers I've realised that as I am self employed it is going to be harder for me to get a mortgage of my own. I've been self employed for four years in September.

This is a complete mine field for me and I don't know what I need to know or who I need to speak to ask for help


Could someone please point me in the right direction

Many thanks
Alice

If you have 4 years of tax returns that prove your income, then a mortgage shouldn't be too much of a problem. It may be worth consulting a mortgage broker though.

andyfromotley

Without using any of the govt schemes (help to but etc) you can use the following as a rough guide.

You can usually borrow somewhere around 4 times your earnings, sometimes more sometimes less, the amount depends on your other outgoing. so if you are earning around £20k you will probably be ok for around an 80k mortgage.

You will need a deposit of at least 5%, but the greater your deposit the better rate you will be offered. This will make your mortgage cheaper.

You will need to pay fees associated with buying a house, solicitors, valuation and stamp duty. Plus some mortgages have fees. Budget around £3k for these.

As a self employed person it will be a touch more tricky to get a mortgage, particularly if your income is up and down. You will need to prove your income, using a certificate from the tax office to show how much tax you have paid on these earnings. There are other ways but they are a bit trickier, either way they will not take your word for what you earn.

If you don't know much about Mortgages, you should use a broker. they will guide you through the process and select lenders who are suitable to your circumstances. You will have to pay them but it will be money well spent.

Hope this helps. andy (cue a load of brokers telling me my info was wrong wrong wrong!!)

Astarblond

Ah thankyou both for you replies they are much appreciated.

What is the best way to go about finding a mortgage broker? Do I need to look out for anything?

Yorkie1

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