Getting mortgage with 1 self employed and 1 employed

Hannah_J

My partner and myself are looking into buying somewhere for the first time.
We'd be looking for a flat that would be a maximum of £230000. We have saved a deposit of £70000, so would need a mortgage of £160000 at most.
My current salary is £26000 and my partners is approximately £35000 (but this is variable as he is self employed, and goes between doing contracts and freelance work.)

Does anybody know the likelihood we would we be able to get a mortgage from one of the standard banks? And what documentation my partner would need to prove his income?

sal_III

Most "standard" banks aren't very clued on self employment, you might want to use specialist mortgage broker, that knows which lenders to approach and how to represent your income in the best possible light.

Generally a proof for self-employed income is SA302 and/or accounts for the last 2 years.

Use the MSE tool to roughly calculate how much you can borrow:

https://www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing

Helen_wyatt

I am in a similar situation we have copies of my partners SA302 forms - does anyone know where I can see Gross & Net income on here I don't know if I'm being blind!

sal_III

It's in bold "Total income received". Provided it was all declared...

The net income is total income, less tax paid

kingstreet

Standard requirement is now HMRC SA302/SA Online Tax Calculation for the latest two tax years PLUS Tax Year Overviews for the same period.

Lenders typically take an average of the net profit/salary & dividends over that period unless the latest year is lower then the earlier year then latest year will be used instead.

Some lenders still request accounts and others will work from an Accountant's certificate.

An experienced broker will know which lender to use based on the applicant's circumstances.