Getting a mortgage as self-employed.

DLTAG89

Hi

Me and my husband currently have a home (mortgage) but in a few years time (about 3) we are hoping to buy bigger (with a much needed office for me).

I sell jewellery online (Etsy) and although I don't earn loads (just short of 8k last tax year) I'm hoping to build on that over the next few years and use my earning as well as my husbands to put towards a mortgage.

I've been reading up lots about getting a mortgage as self employed and I've been getting very conflicting advice some say 1 year accounts and others 3. Some say I need an accountant, others don't and SA302's.

I have done my tax returns myself the last 2 years and had no trouble but I know that's not really enough proof. I don't really want an accountant as I don't feel like I will be taken seriously due to my low earnings and I also prefer to look after my own money.

Can anyone offer any advice or share their experience of getting a mortgage while being self employed.

I know things will change in 3 years time too (as the mortgage advice bureau kept telling me) but if I can get a grasp on things now hopefully I will have the proof needed in 3 years time.

Thanks

kingstreet

Expect to need your latest two years SA302s or SA Online tax calculation sheets PLUS the accompanying tax year overviews to evidence the correct payment of tax.

The lenders will then usually average your income over that period.

This covers a decent chunk of the lending market, so it's unlikely to be much different in future.

One year's figures may be doable, but with a severely restricted market open to you.

Mortgage_Moog

I'm self employed and spent 5 years preparing to apply for a mortgage. I was delighted to be offered one last week so I can help you.

Firstly, you will need an accountant. I did without one for years but even when looking at renting they wouldn't touch me without an accountant. When it came to the mortgage they asked me for their details and said that without one it would have been much harder if not impossible. I know it can seem a lot to spend but it's not because you'll probably save more in tax than you pay them.

I pay mine £200 per year and in the first year alone they made me aware that I could claim things I never knew about and I saved £200 in tax! Overall, get an accountant. It makes everything so much easier but make sure they're a chartered accountant, one that isn't chartered won't be accepted by most places.

How many years of accounts? Depends on the lender. Mine wanted two years, some will accept one and some want three. They don't really look at them, they're much more interested in your SA302's. Whenever I offered my accounts they just said "Oh, yes..we'll deal with that later" but never did and weren't really bothered at all.

SA302's - yes you'll need those. Just a phone call to HMRC and a loooooong wait in the queue is all it takes. I ordered mine on a Saturday and they came the following week on Thursday. Considering there was a bank holiday Monday between those dates I thought that was fast.

Anything else you want to ask just let me know.

amnblog

Kingstreet has this spot on here.