FTB Mortgage when part Self Employed

Polaris49

Hi there!

I'm a FTB and wanted to know the possibility of getting a mortgage?

I'm 29 and work full time on a salary of £24000 and have been there 6 years.

Im also self employed (sole trader) with 2 businesses i run in the evenings.
In year 1 i made £4200
Year 2 £11600
And now so far this tax year £21000.

I didn't want to use my first year tax return as its not only a part year, it only accounts for 1 business. But after having a super quick chat with HSBC they say they wont touch it without 3 years returns ? (which then reduces my income)

So i want to know.
1. Is it possible to get a mortgage with 2 years accounts.

2. Is it possible to get a DIP with part years accounts (on the basis of the full mortgage being applied for in april once the recent tax return has been completed.)

3. How reliable are online calculators for borrowing?

Ta!

Edit: i have a £25k deposit plus a bit for fees.

ACG

1) Yes
2) You can get a DIP for what you like, it is only as valid as the information entered, it also expires after around 28-30 days so you will need a new one come april anyway.

3) As accurate as the information entered.

There are lenders who will use 2 years accounts but they will average the 2 figures (assuming the latest ears is higher than the previous).

You cant use this years figures for self employment until April comes and you file your Self assessment. Dont forget to order your SA302 and tax overview documents. Most lenders will want these. If you have an accountant have a word with them, they should know what to do.

amnblog

ACG wrote: »

1) If you have an accountant have a word with them, they should know what to do.

That'll be a first!

csgohan4

What ever you do don't use an Estate agent's services ever. Their brokers are not whole of the market and it is a conflict of interest knowing what you can afford

Polaris49

Thanks guys!

I think i've learnt more about buying a house after reading this forum for an evening than i would have ever!