Mortgage process, Managment Buy Out = Self Employed?

ForestHills007

Good evening,


I had a bit of a shock today. I own a house 40 miles from my current work and was just starting the process of buying a house next to my work due to splitting up with my partner.


I had a great deal set up where I was to BTL my current house (its a great house in a great spot and id maybe like to return to it sometime) and I was going to get something cheaper near my work to cut down on the journey.


However the owner at my work was planning moving part of it to new premises and during this process he mentioned he would be happy to sell the company. We did the figures and realised we could make it work better than he has so in quite a quick timescale we have been going through a management buy out - it would be 50/50 between myself and someone else.


I must admit I had never thought it would effect my mortgage process however I found out today when mentioning it in the passing that it would make me effectively self employed and that I cannot get a mortgage for at least a year although Tesco tell me its 3 years with them.


This will leave me in limbo only able to keep a mortgage on a house 40 miles away from where I want.


Am I stuck in limbo or is there any way around this?

amnblog

Yes, you are if you are newly self employed and therefore cannot effectively prove your income.

If the buy out if some way off you can complete your purchase now.

ForestHills007

Hi - if I knew I would have done this all a few months back when the process started but im down to weeks now. I would say its going to be 10-14 days and I will become a shareholder. I assume thats too late to start a mortgage process.

Thrugelmir

You need to declare the full facts when making an application. Anything less is fraud.