First timer! Looking for help on basics!

King_of_the_Blade

Hello all,
I was looking for mortgages on the net and I came upon this forum- great! It would save me alot of time if someone could answer a few questions for me.

I have self employed for 2 years, and last year my net income was £500. This year it's going to be much higher.
The reason it was pathetically low is that I didn't do more than 2 months work. This year I nearly gave up and just recetly I have decided to get back into it in a big way to allow me to move out and buy my own place.
Problem is I don't have any audited accounts- so would any Mortgage broker take me on?? I see HSBC has a Graduate Mortgage where they don't need a deposit- but they need 3 years of Accounts! So is there any option for me or do I have to get my head down to work for 2 years b4 I can move out?
Cheers all.

payless

Their are lenders that will consider you self certifying your affordability to repay a mortgage, although as a prudent broker I would not process a case such as yours , until you had a much better income record - say 12 months at least

( also those that allow self certification of income - rather than showing accounts - although that would be little point in your case , as you have have declared a low income already- stating anything esle would possibly be considered fruad)

in any case you are usually looking at needing 15- 25% deposit, and gather from your comments that this might be an issue.

Instead , could you provide a guarantor ?

King_of_the_Blade

Thanks for that, it's roughly what I expected to hear.  I would have to get a loan for a deposit. I had not thought of getting a guarantor- but I would probably be able to yea. Would they have to guarantee 100% of the value or can I choose to say how much they are guaranting? If that's the case then it would be more enticing from the Mortgage lenders point of view, due to my low income, to have my guarantor guarantee as much as possible. What % of the loan would you suggest?

payless

In fairness I don't do much 100% or guarantor stuff these days ( so willing for others to correct me) , last one that combined both I did with Scot widows , but don't think they accept self employed applicants

Therefore think will still need at least 5% deposit in most (if not all) cases

Give your provable income the guarantor would likely have to guarantee the whole loan amount as either a guarantor ( or fully as a joint owner)