Self employed looking for a first time mortgage

brendon22uk

Hi, I just looking for some clarification at where I stand as regards to my self employed income and to getting a first time mortgage (help to buy).

I will be coming up to my 2nd year of accounts with first year revenue of £24000 (keep it simple) and second year £26000. However, when filing for self assessment I have stated realistic business expenditure with profits of £13000 as stated on my HMRC tax documents and £17000 for year 2 (soon to be shown come when I declare in April).

Now i'm guessing when it comes to mortgage applications they will look at my profits rather then my revenue? which is going to suck lol.

Looking at the document I have paid £940 in tax for £13000 profit, so would the mortgage guys add these together and use gross profit rather then net profit?

Please help, my friend told me the bad news today

Thank you for your replies..

ACG

It is profit after expenses but before tax.
Some lenders will work off the latest years figures so that might help you out maybe?

csgohan4

really also depends on your budget as those are low figures. Generally 2 years SA302 would be good and as above, some accept accounts but the latest.


This also goes with the figures on your SA302 they may take the latest figures or average the last 2 years

brendon22uk

My earning are just a bonus and a top up really to my partners earnings for when getting a mortgage. Good to know that its based on my gross earnings and not just my net earnings. Figures above were from my SA302 i believe.

Many thanks for your answers and clearing things up for me. April this year will be my second set of accounts which ive heard is minimum required.