Mortgage questions

surfer9

Hi,

I have just seen a shared ownership property advertised that I like.

I have a hefty deposit, and I'd only need to borrow £56,000, the rental costs aren't too high either.

I can pay 60% of the cost of the property, and I plan to keep £10,000 in my bank account as a fall-back.

Problem is, my income is a little bit hit and miss recently. Although i'd only need to borrow a relatively low amount, I am self employed and employed....

1. My employed work is a bit up in the air at the moment, my employer has 30-40% less work available for me so far this year.

2. My Self Employed work has also dropped 50% in 1 year.

Currently I am earning enough to get the £56,000 mortgage in terms of the 4.5x income, but not by much....

1. Will a mortgage broker be unwilling to let me borrow the £56,000 based on my income dropping dramatically.

2. Will a mortgage broker want to see my 2016-17 business accounts, or could I get away with showing the previous 2 years. I don't usually do my business accounts/pay until January.

3. Would a broker want to see my business bank statements or will one of those forms from the taxman showing annual tax paid/earnings made be ok?

Cheers.

AnotherJoe

Can you explain why you are looking to make such a big commitment when your employment position is so uncertain and you are so close to the edge financially in terms of affordability.

BattleToads

surfer9 wrote: »

2. Will a mortgage broker want to see my 2016-17 business accounts, or could I get away with showing the previous 2 years. I don't usually do my business accounts/pay until January.

3. Would a broker want to see my business bank statements or will one of those forms from the taxman showing annual tax paid/earnings made be ok?

Rules will likely vary per lender however you should be good to use the last two years you have filed. Wording is normally to the effect: "Last two years self-assesment returns where the latest years is not older than 18 months ago."

You would need to print off your SA302s and tax year overviews from your self assessment dashboard to confirm the figures of your returns and prove tax is not outstanding.