Mortgage + Self Employment

imogenrose05

Hello all!

I need some advice please. My boyfriend and I are looking to buy a house next year using the Help to Buy scheme. I earn a steady income of £21k, he is newly self employed. He started his business in Feb 15, and I did his tax return for the 6 week period which was a loss of £5k (unsurprisingly). For 15/16, he has made a profit of 16k.

Now I am aware most lenders look for 3 years accounts/tax returns but have been told we may be ok depending on his tax returns. By the time we actually apply for a mortgage, we will hopefully have submit his 3rd tax return.

Has anyone successfully secured a mortgage under the help to buy scheme, being self-employed?

Is there anything we can do to help the situation before we apply?

Any advice would be fab!

Thank you

P.S I am aware we don't earn loads, but everyone has to start somewhere!

ACG

There is nothing you can do really, lenders will go off his income so its jsut a case of seeing what those come out at and going from there. There are lenders who will work off 1, 2 and 3 years figures so there could be a few options.

Which help to buy are you looking at? Im sure one of them ends at the end of this year.

imogenrose05

Just the 5% deposit one. This one ends 2020. It's just so hard and feels like everything is against us at the minute but hoping we will get lucky

Dipplo

We have just this week (Thursday) had our mortgage offer issued and we received the paperwork on Saturday. My girlfriend works full time and I'm self-employed and we had no issues getting accepted for Help to Buy or our mortgage - in fact it was very quick! Ours is a £250k house with a 5% deposit.

21/04 - Help to Buy authorised
22/04 - Full mortgage application sent
26/04 - Mortgage valuation on house
27/04 - Mortgage valuation on house approved
27/04 - Mortgage offer issued

Find yourself a mortgage broker and tell them your circumstances - ours hasn't cost us anything as they get referral money from the lender. In my case, they wanted 3 years SA302 / Tax Calculations and 3 years Tax Overviews. Some lenders will accept less - a good broker will know which. They didn't ask me for any extra documents or clarifications on anything.

I hope this fills you with a little confidence I was pretty worried when we were applying expecting to be rejected, but it's honestly been painless so far. Hopefully exchanging next week!

imogenrose05

Thank you ever so! I feel relieved already. I am a person who stresses about everything, often for no reason.

Good luck to you and your girlfriend, enjoy your new home!

Dipplo

You're very welcome and good luck to you when you guys get to it. And I think stressing is perfectly normal in this situation - it's the only thing I've done over the past 3 weeks! I'm holding off until we've actually exchanged before getting excited but hopefully not much longer for us