Self employed / Ltd Company / Bankruptcy

GG-House-Saving

I need to see a mortgage broker really, but I'm hoping for some information beforehand to see if I need to wait longer.

So, myself and my partner are looking for a mortgage.

Me: Self employed for 7 yrs, the business went Ltd in November 2016... in hindsight a bad move mortgage wise, but there we are.

Income: £7,500, £15,000, 23,000, 32,000, 34,000, 36,000, then this years accounts which are not complete but should be around 40k profit and I now have premises and staff, so that's drained some profit this year.

Credit rating: No debts, 998 Experian rating, bankrupcy 10 yrs ago, I was discharged after 1 year, very simple, nothing dodgy, never missed a payment since.

Partner: Employed with the same company for 17 yrs, no debts and no missed payments ever. £32-35k per year.


We are looking at going for a mortgage, but I'm so worried they will say no because of me...

Can anyone shed any light into what they will want? I have 5 x SA302's, and later this year will have first year of company accounts but it will only cover Nov '16 > July 17, so half a year.

Any help would be appreciated.

dimbo61

Find a good broker.
He/she can get your credit file from the 3/4 credit agencies and see who might lend to you.

amnblog

'They' will not say no because of you.

The change to Limited a Company however is a problem and with most Lenders this change starts the clock ticking again in terms of self employment history.

You should have some options once you have figures for one years Limited Company Trading.

GG-House-Saving

Thanks Dimbo,

We are going to try and find someone local and book a meeting.

Just worried they will disregard my previous SA302's and now want the ltd company accounts only.. in that case I'll have to wait another year or so..

I'm 100% owner and shareholder, so maybe my SA302's will still count? the business is the same as before, just Ltd now.

GG-House-Saving

Sorry, cross posted there.

ACG

The change in company status is a bit of a pain, but not a deal breaker. I took out a mortgage earlier this month. 1 years account ltd and 1 as a sole trader and it all went through fine.

The bankruptcy is that old it should be fine.

You could do with getting your SA302s and Tax overviews (your accountant can get these) plus a copy of the bankruptcy discharge certificate.

I think you will have options.

GG-House-Saving

Thanks ACG.

I'm wondering if I'll get anywhere this year, my Ltd accounts will only be for 7 months worth, maybe I will have to wait until next Autumn to have the full year.

It's nice to know I hopefully will be okay once I have that first full year though!

ACG

Assumng the business is the same and it is just a change of entity for tax reasons, I see no reason why you would need to wait. I suppose the biggest issue is combining that with the bankruptcy but I do think there should be options.

GG-House-Saving

Yes, everything is the same as before.. I was just getting bigger and when taking on staff and looking at premises my accountant advised to go Ltd.

I'll go and speak with someone later this summer, once my first accounts are back and see what they say.

I have my SA302's collected up already, and my discharge letter.

I'm a little more hopeful now at least, still feel like I'll be made to wait another year.