Mortgage for the self employed

Anonimas

Hi,

I'm looking for advice on getting a mortgage for my situation.

I'm a self employed web developer, and currently my earnings are quite substantial (to me atleast).

My problem is I have only 1 years taxation records and I'm 21. A problem for the few banks I have contacted.

Last year my gross profit was ~£17K from ~£30K. This year (tax start April 5th) til now I have earned ~£30K with current monthly income at £5K+. I believe this year I can look to make £45K+.

A mortgage will also give me some tax breaks (less gross profit; less taxation). My only option now is to buy a load of crap I don't need. I'm not moaning, i'm very priviledge to be in this position, my issue is: it just seems all a waste...

It seems absurd that the market has made it so difficult for me to acquire a mortgage.

Renting isn't an option for me as there's no way I'm !!!!ing money away for some lucky !!!!!! who's lucky break came from being born 20 years before me :mad:

Emmigration to the US/Australia seems the only option now, but that's not a step I'd like to take at this moment.

Does anyone have any experience in this?

Thanks! :beer:

dunstonh

It seems absurd that the market has made it so difficult for me to acquire a mortgage.

In a way what has happened is a good thing as there seems to be some realism returning to the lending criteria (at least with the high street brands). Had it gone on as it was much longer then the consequences would have been bad for everyone.

Does anyone have any experience in this?

You have tried a few banks, you should try a whole of market mortgage broker. They can look at your situation. What you are asking for is not much of a problem providing you have a deposit and not pushing multiples.

grey_lady

Im an IT contractor - however i work through my own ltd company, im not technically self-employed. Dont go direct to banks, use a broker - there are so many mortages out there, an expert in getting mortages for IT contractors is essential.

A lot of people of the IT Contractor forum (including my other half) have used a whole of market broker called 'Contractor Money' for mortgages.
I just went with a chap my accountant recomended and it all got a bit stressful! (got there in the end though)

How much do you think you will need to borrow? 45k x 3.5 plus a 5% or 10%deposit would be pretty good unless your looking to buy in london? - you might have to come out a bit, but there are places to buy in zone 4 for that money.

Not sure what you mean about the tax break exactly. Maybe i've misunderstood, but if your thinking about buying through your ltd company or claiming that part of your home is used as an office and therefore claiming tax relief on that, then please investigate further - if you do that, then you might well be liable for some capital gains tax when you come to sell, as it wasnt just your home :-) (Moneybox on Radio4 mentioned it)

hth.

ps - i had a 5% deposit and less than a years accounts. Mortgage was just under 3x gross earnings.

Anonimas

Thanks for the replies.

Looks like a mortgage broker is the way to go :beer:

What kind of fees does a mortgage broker request etc?

Luckily I'm not in London, I'm in Manchester (on the outskirts). House prices here in the NW are still hot as hell tho :mad: