Self Employed but want a new mortgage!!

MrsSollis

Definitely will not be going back into teaching - no desire to go through the stress of that job ever again!!

I do have an employed income so that will go some way towards the new mortgage.

I think we will be ok, I just went into panic mode as had been reading on how it was difficult to get a mortgage when self employed!!

sheff6107

They go off your HMRC SA302 documents.

If you are employed your wage slip probably shows you earn (for example) £20k.
If you are self employed your SA302 probably shows you earn £20k and your expenses amount to (for example) £8k.

Therefore Mr Mortgage Man looks at your SA302 and writes down that you earn £12k.

You need to work with your accountant to get a high number on your SA302s. Unfortunately this means you will be paying a heap load of tax.

looknohands

Despite what above says I'm 100% that SA302s do not show revenue and expense,
SA302 only shows your total profit for that tax year.

Revenue and expense is worked out elsewhere in self assessment and mortgage company never need see this.

I was self-employed when I got my mortgage, it was very straight forward (got mine in Jan 2016), if you can afford the monthly repayments + 20% or so you will be fine.

I just sent them SA302's for the past 2 years, and three months bank statements. No accounts required. They will usually need 2 years SA302s and then they will calculate the average, they only take full years, so you will get 2015 - 2016 and 2014 - 2015. He may need to file the last one, I always do mine in April.

No questions asked for myself, they were actually more interested in my girlfriends income as she is a part-owner in her employers company.

Brightspark87

Go see an independent mortgage broker for advice - why worry about this when experts can help? They will talk through your options and tell you what is necessary as well as review the whole of the market for your best deal