Buying a home when husband if self employed (already have a mortage )

Km2020

myself and my husband bought a house 2 and half years ago,  he wasn't self employed when we purchased our first house,  but since then he was become self employed (earning more than what he was ) i am also earing more money than what I was , but we are still being told we cannot get the mortage because they work out my husbands money from the last 2 years as an average after tax . Even if we waited a year the bank are still going to say its not enough which I don't understand because we are both earing more so it doesn't make sense to me. Is there any way around this at all ? Thank you 

Sandtree

"Self employed" is a bit of a loose term in the UK and one often miss-used by banks etc. What does he do and what legal structure is he using (sole trader, ltd/psc etc)?
When did he start trading and how many returns has he done?
When you are saying he is "earning more" is that on a gross or net basis?

I operate my work via a limited company and so most banks consider me "self employed" even though legally I am not. I've been doing this for 9 years though and so have more than enough history that lenders are willing to extend decent mortgage terms. 

foxy-stoat

So how much do you want to borrow and what is the total household income?

Km2020

We have equity of £61000 currently and are looking to buy a house around the £300000 mark , total household income is around £55000  

foxy-stoat

So is your existing lender not willing to include your Husband's salary at all?

At 4.5 times total income you are borderline - then there is buying and selling fees to take into account which could slice off a few thousand.

Maybe speak to a broker who will be able to work with what you do have.

justme200194

Halifax ‘consider’ applications on one years self employed so they may be worth a try if you haven’t tried them already... 

We are currently in the process (through a broker) of appealing with them though after being declined. Have been in our present home 4.5 years, never missed a mortgage payment, no defaults on file etc. Combined income of £70k+ per year , £90k equity in our current home and wanting to put down 20% deposit towards the next home (have offered to stretch to 25% if needs be).
Us both being self employed/Ltd company it really has gone against us. I hope eventually you have more success with obtaining a mortgage than we have! 

Km2020

Thank you for you're response , we are actually with the halifax and like you have never missed a payment. I have been on maternity leave for a year, and we have still afforded to pay our mortgage even though I was on half pay and then no pay for the last 3 months! So hopefully they will see that we can afford it . I'm back to work now as well so we've have 2 incomes again. I actually have a telephone appointment with the halifax tomorrow so fingers crossed we will get some good news. Hopefully you do to 

blue_max_3

On thing I found out the hard way, was that lenders give no weight to perfect payment history. They expect that. They just punish poor credit ratings.