Mortgages while self employed

blue_cat_3

Hi all,

I'm looking for a bit of advice to see if there's any options worth pursuing further.

I purchased a house nearly 3 years ago (on my own) with a mortgage through Barclays / Woolwich. Since then, my partner has moved in and we've recently got married.

We'd really like to move to somewhere bigger. However, I've also recently become self-employed (within the last 2 months) as a freelance consultant with my own limited company. It's going great and I'm on track to at least double my previous salary. We're lucky, have no money worries and excellent credit ratings.

We'd be looking for a mortage around about 2.5 - 3x our combined estimated salary (even being a bit pessimistic on my own income).

However, that's about 5-6x my wife's salary on it's own. The contracts I work on tend to be shorter term (1-6 months) so I can't even provide evidence of guaranteed future employment.

We can easily afford that level of payment, but actually getting a mortgage will be the tricky part! Are there any options other than waiting over 2 years so I have two published sets of accounts? Is it likely our existing mortgage provider would be sympathetic as we have a good record with them? It's very frustrating as we can afford it no problem and want to move, but just lack the evidence to prove it.

I've thought about going to a broker, but wanted to know if there was even any point first!

Many thanks.

kingstreet

You'll need at least one year's trading record to get self-employed income taken into account.

blue_cat_3

Thanks - is that a fairly general rule or specific to a few providers?

HappyMJ

blue_cat wrote: »

Thanks - is that a fairly general rule or specific to a few providers?

Fairly general but there are providers out there that can help and the only way of finding them is through a broker. Some lenders lend on the value of your future contracts rather than your past performance which in my opinion is more guaranteed than looking at your profit figures which if you are tax efficient you would reduce as much as possible.

amnblog

blue_cat wrote: »

Thanks - is that a fairly general rule or specific to a few providers?

That's the general rule - you are far too early to be accepted.


Either it is a self employed application so that means 12 months trading, or you are a Contractor and Contractor specialist deals want at least 12 months Contracting.