Mortgage when your employed AND Self employed?

StuartJames

Hi All,

We are currently looking for our first home (have been renting until now) but also have my mother coming to live with us so need a property that is big enough for us all.

I am currently employed part time (£19300 a year) and my wife works full time (£25500 a year.) We also own a business which has grown rapidly over the past 2 years- 75k turnover/20 profit last year) this year (at financial end of year in April) 120k turnover 60k profit...

My question is, all of the mortgages I can see online are either aimed at employed OR self employed, with the emphasis that its very hard to get a montage on a self employed basis if you have less than two years accounts (which we won't have until April 1st)

Is there a way that we can apply for an 'employed' mortgage and then use the money we pay ourselves from the business as supplementary income (around 15k each a year) or will I have to look for a self employed mortgage?

We are currently looking at properties around 300k....but would ideally like a fixed rate at under £1000 a month... we have a £30,000 deposit...

The one broker I spoke to said theres only one lender he could think of that would lend to us at present, we sent him our figures and he seems to think we would be approved, however he has said that theres no way we would get a fixed rate (don't like the thought of variable...) and the best interest rate we could get would be around 3.5% with payments being around £1200 a month over 30 years....

ANY advice would be really appreciated!

Thanks!

ACG

I would be surprised if there is only one lender, but with just one years accounts your options will be limited. If you wait until you have 2 years you will have more options.

Variable probably is not that bad in the current climate, it would only be for 2 years at which point you can fix? The chances of interest rates rocketing in 2 years is slim, the economy would not cope with large rate rises in such a short space of time.

glosoli

I processed a similar application today and simply detailed the applicants employed and self employed jobs in the fact find and combined the income. Just because you are self employed does not mean you cannot get a "normal" mortgage. In this instance your employed positions aren't high enough paid to support a £270,000 mortgage on their own, so in my opinion you should wait until you do have at least two years (three in an ideal world) worth of accounts before making an application.

StuartJames

Thanks you for the advice... the house we have seen has currently been on the market since May 2016 so I am hoping it will still be on the market if we hold off until the end of March... by which time I will also have a better deposit in place...Am I better off speaking to a broker rather than approaching the estate agents mortgage advisor?

glosoli

StuartJames wrote: »

Thanks you for the advice... the house we have seen has currently been on the market since May 2016 so I am hoping it will still be on the market if we hold off until the end of March... by which time I will also have a better deposit in place...Am I better off speaking to a broker rather than approaching the estate agents mortgage advisor?

Either find a broker, or do some home work into criteria and approach a bank directly would be the best option.

amnblog

StuartJames wrote: »

Am I better off speaking to a broker rather than approaching the estate agents mortgage advisor?

You are better off speaking to the Newsagent than the Estate Agents mortgage advisor.

You have few options and lenders will typically count only half of a secondary income.

Get a second opinion to be sure, but it sounds like you may be too early to achieve what you seek.