Self employed mortgage

Christgn

Hi,

Me and my partner are looking to get a mortgage. She has only been self employed for just over a year so has one of year of accounts but I am in full time employment. We are looking for a 95% mortgage and we are both FTB with a good credit history. Are there any lenders that would consider us?

kingstreet

Yes. There is a small number of lenders considering those with one year's trading.

csgohan4

1 years accounts are possible, but possibly the interest rates may not be market leading

Rick_Albright

Hi there,

I think you need my plan:

https://forums.moneysavingexpert.com/discussion/comment/74487668#Comment_74487668

ACG

Rick_Albright wrote: »

Hi there,

I think you need my plan:

https://forums.moneysavingexpert.com/discussion/comment/74487668#Comment_74487668

You are saying you told HSBC you would be transferring the shares to mum and then back to you once the Mortgage had gone through and they were happy with that? If that is the case, I am shocked.

As Kingstreet and AMN said on your thread, as a broker there is not a chance I would touch a case like that.

Also 2 very big differences:
1) You had a large deposit.
2) You had no trading history and so probably no (if any) CGT liability on the shares.

To the OP or anyone reading this, do not do this without getting advice and being 100% open and upfront with the lender prior to making an application.

MortgageMamma

ACG wrote: »

You are saying you told HSBC you would be transferring the shares to mum and then back to you once the Mortgage had gone through and they were happy with that? If that is the case, I am shocked.

As Kingstreet and AMN said on your thread, as a broker there is not a chance I would touch a case like that.

Also 2 very big differences:
1) You had a large deposit.
2) You had no trading history and so probably no (if any) CGT liability on the shares.

To the OP or anyone reading this, do not do this without getting advice and being 100% open and upfront with the lender prior to making an application.

Hi ACG

I keep repsonding to this idiots constant thread spamming with similar warnings to people. I've reported it to the forum team as well I don't understand why he is not kicked off the site he's inciting people to commit fraud!

Rick_Albright

Dear ACG,

Yes I did inform them. They lady said I am now a manager and I can apply for a mortgage as a employee, as I hit there criteria.

I put all my cards on the table and was truthful and upfront with what I was doing and she smiled and said this is not a problem at all.

I had to be upfront as if not I would ended up on National Hunter for not being honest.

ACG

According to his actual thread he told HSBC.
IF he told HSBC 100% the truth, is it Mortgage fraud? I just cant get my head around HSBC lending to him if they knew everything.

Rick_Albright

Hi there ACG.

I told HSBC everything and in detail.

The adviser was more than happy to help.

I don't know if it helped that I banked with HSBC for many years and have a very good relationship with them.

Just to clarify I used a Solicitor and a mortgage broker who advised me and get everything in writing from HSBC to ensure everything correct and not breaking any terms with the mortgage etc.

Perhaps you could call it a loophole?

ACG

I dont think that is a loophole.

I am quite big on doing the right thing. It helps me to sleep at night and I am aware financial services has a bit of a dodgy rep at the best of times and things like this do not help.

I am trying to be careful of how I word this as I dont fancy a solicitors letter on my desk but brokers and lenders, we all have responsibilities to meet guidelines set out by the FCA.

Knowingly accepting your application as a "manager" where you were the director and will go back to being a director down the line on a brand new company with no accounts is worrying.

If the business goes under for any reason - bad management, lack of customers etc you are in a position where you may have mortgage arrears and repossession in addition to legal fees. Personally speaking, I think both the lender and broker are open to a complaint.

The broker could argue they have checked with the lender, but I do not understand how they can verify your income legitimately. On paper it looks like the job is done, but in practice I dont think it is. As I have said before, I have a family to feed and there is no chance I would risk my livelihood with this.

Rick_Albright

Dear ACG,

I used payslips.