HTB Self employed

brendon20ukk

Hi.
I was wondering if anyone can help regarding self employment. We're looking to apply for a HTB mortgage using a broker next week (still trying to find a suitable one) but im worried about our last 3 months of spending.

I filed my partners tax returns in April and she has made £20000 this year (18/19) but her average over 3 yrs is £16000. Since April 2019 shes made a staggering £8000 already and therefore has made half the amount of her average in such a small time. The other thing is that our spending has increased to around total £1200 per month for the last 3 months but the ratio of money coming in is far greater than money going out.

Will this benefit us in anyway where lenders will see a big increase in earnings since April 2019 or would they disregard this and continue with the last 3 accounts upto April 2019 and therefore will average £16000?

Im concerned about our spending and is probably worrying us over nothing but wondered if anyone can share a bit of light on this.

I think £16000 average is fine is more about the £1200 per month we've been spending.

We're looking to obtain a mortgage of around £150,000. I currently earn £20,000 annually with £15000 savings. Thanks.

brendon20ukk

Sorry forgot to say thats its £1200 on luxury like eating out, shopping etc so it excludes the £1000 for bills. Thanks.

csgohan4

if your self employed, lenders generally take your income from the tax returns/ Limited company accounts if applicable.


As long as the spending is not a recurring thing such as high value commitments




As a general rule, lenders will lend x4.5 of your total income not including debt/loans