Self Employed looking to remortgage

monkeybrains

I'm self-employed acting as a director of a ltd. company and in the process of getting accounts ready for the accountant in the next couple of weeks.

I have a mortgage currently at around £79000 with the initial purchase/house value of £105'000.

The Mortgage is with Kensington so obviously a very high rate of 5% and have had this for 3 years. I've not switched yet as when I went to my bank (Santander), they said they couldn't do anything until these new accounts are in.

The accountant is cutting the tax burden as much as legally possible but it may be the case of not doing this this year, in order to get accepted for a better mortgage rate.

My question is: I am looking to sell and move into another house worth £200k, My current house is worth around £125k and I can get another £25k together so realistically I would like a new mortgage to cover the excess and added on to the £79k current one so it looks like it would be an extra £50k on top of the £79k. Does this seem feasible? All payments for the past 3 years have been on time and the business is growing yearly.

I am really confused with how it all works but I am seeing a mortgage adviser on tuesday, however, I would like to know all possible ideas before I see her.

csgohan4

not enough info, how much do you take home before tax, including dividends, how many years of accounts do you have, how many years of SA302's do you have ???


If your cutting your tax burden do you have enough income to reach the amount you want to borrow??


Going to a broker is a good idea, one that specialises in self employed

amnblog

The smart move would be to engage a Broker now so when doing your accounts you know the score.

BoGoF

You really are confused - for starters you are not self-employed

amnblog

He may call himself monkey brains but he is not wrong.

He is self employed as far as getting a Mortgage is concerned.

monkeybrains

csgohan4 wrote: »

not enough info, how much do you take home before tax, including dividends, how many years of accounts do you have, how many years of SA302's do you have ???


If your cutting your tax burden do you have enough income to reach the amount you want to borrow??


Going to a broker is a good idea, one that specialises in self employed

I'll find out how much income I need to show on tuesday.

monkeybrains

amnblog wrote: »

The smart move would be to engage a Broker now so when doing your accounts you know the score.

Yep, my accountant wants them asap so will see the broker on tuesday beforehand and will give her a rough breakdown of income/expenditure so I can then go to the accountant with figures to aim for.

monkeybrains

BoGoF wrote: »

You really are confused - for starters you are not self-employed

I'm classed as a director of a ltd company but yes, not really self-employed per se but in a mortgage application, that is what I'm classes as.

monkeybrains

Thank you all for clarifying what I need to do

monkeybrains

csgohan4 wrote: »

not enough info, how much do you take home before tax, including dividends, how many years of accounts do you have, how many years of SA302's do you have ???


If your cutting your tax burden do you have enough income to reach the amount you want to borrow??


Going to a broker is a good idea, one that specialises in self employed

Forgot to say, I did have enought SA302's when applying for the last mortgage 3 years ago and have also have 3 years of accounts produced by an accountant - over the previous years of doing them myself.

I'll get take home before tax and dividends together shortly,

monkeybrains

Just a quick update to say that in April, I should be able to get a Mortgage of £134,000, which when selling this house, along with savings of £25,000 I would have enough to cover £200,000.

So on paper, it should be possible.

The issue I have now is, where I'm living, the house prices are going up due to regeneration of the town.

I was thinking of keeping this house and getting a buy to let mortgage on this property and getting a new mortgage on another house.

Not sure where to start on this and if it's possible at all but if anyone can point me in a direction for this, I'd be very grateful.

I'm going to go back to the Broker when I get my accounts done but again, would like to know from here, what the possibilities are?