Self employeed mortgage

lj1970

We are looking to buy a property next year, we both self employees earning 30K in total this year and 13K last year plus we had 7K profit that we did not take out (we partly looked after an elderly family last year).
We have 160K deposit and looking to get 80K mortgage on new build house plus help to buy if we could. Do you think we got any chance of getting mortgage? we have no other debt, good credit rating.

rtho782

Your current years profits are fine, but you only have 1 year of earning that.

You say £7k profit you did not take out, so I assume there is a Limited Company involved, this company is it's own legal entity, so this is not relevant.

If you're paying yourselves via PAYE you are employees, albeit shareholder employees. If this is all dividend income it might be more complex.

kookamunga

Call Halifax and ask them, they give mortgages to self-employed with 1 year of accounts. There could be other mortgages but they won't have competitive high street rates. Having one is better than none, you only need one mortgage to get the house! Good luck!

kingstreet

kookamunga wrote: »

Call Halifax and ask them, they give mortgages to self-employed with 1 year of accounts

Halifax may take one year's accounts if that's how long you've been trading. What it won't do is take latest year's figures when you have more than one year, it takes an average.

There are lenders with much better rates than Halifax who will use retained profits and/or latest year's figures who would be much better.

They have lower fees and cashback which makes them much better value for a small mortgage and they offer products on HTB Equity Loan too.

An independent mortgage broker would be best first port of call for this, not direct to a lender.