Self employed mortgage help

figgyroo

To cut a long story story short, I worked for a Ltd company on an employed basis for 10+ years. This company was then taken over by another company, which is a partnership. I had to transfer over to being a partner, which I did beginning of April 2014. Although I am technically self-employed, my equity stake is minimal (less than 1% of the company). I might be changing back to employed status (hopefully) in the near future, although the company has not made a final decision yet.

I would like to put my house up for sale and move to another area. To do this, I will need to obtain a new larger mortgage. I have never organised a mortgage whilst self-employed but believe I need SA302 forms. I've requested these from our accountants and they have provided me with one for 2013/14 but can't yet for 2014/15 as my tax return hasn't been finalised.

Question is, do I wait until I have two years SA302 forms or will a mortgage provider require more than that? Would I be best waiting to see if I go back to being employed/have 3 months pay slips?

The mortgage I will be applying for will be in my name only, ideally a 10yr fixed, LTV of approximately 40% and a loan of about 4 x salary.

Thanks

HappyMJ

If you are an employee of the company you are not self employed you are employed and will have payslips to prove that.

ACG

As a 1% shareholder you should be treated as employed. I cant think of any lenders who would class you as self employed with such a small shareholding.

If you recevie and want to use dividends you may need the SA302s but assuming the bulk of your pay is PAYE then payslips/P60 should be fine as normal.

figgyroo

I don't get payslips since I transferred over to partner/self employed. I have guaranteed drawings which are paid to me monthly. The company keeps an appropriate amount back for tax. At the end of the year our accountants do our tax return and I am told how much tax I need to pay HMRC. The company then uses the money kept back to make these tax payments. I also pay my NI contributions direct to HMRC.

ACG

There are lenders who will do it with 1 years SA302s. Only one I can think of on the high street. If they decline it then the rates will not be very competitive.

I would try and get the second years if possible.