First time mortgage / self employment help

jhl1987

Hi all,
This is a bit vague at the moment as we only have ideas but I have to make decisions about employment / self employment -
My parents will be selling the flat that I currently live in and using that money to buy a house within the next year - 2 years. I am going to put money towards this with a mortgage and we are going to look at houses with separate annexes to purchase together (legal side yet to be looked at!) At the moment I have a full time job and believe that I can borrow around 60 - 80,000 which would be adequate. I am also self employed and have been for around 7 years but only my last two tax years show a profit of £1000. I am now expanding and growing my business in to another area but to put everything in to this I need to work part time which would mean I earn around £8,000 P/A. My question is would they consider my earnings increasing given the new part of the business or only consider the last 2 years at £1k profit? I think I would have 2 more tax years to show before I make a mortgage application and obviously would hope that the profit would increase within that time,
Thanks in advance for any help!!

amnblog

You need a minimum one year higher figures EARNED not projected, before they are of any value to you on a mortgage application.

jhl1987

Thank you, so say I had £5000 this year and £8000 the year after, would they take an average including the £1000?

amnblog

Depends on the lender. Most will average, some will work on latest year.