SEISS affect on a Self Employed mortgage - Damage done ?

Shaps

Can anyone please give me some advice .

I  am a 40 year old self employed ( sole trader ) first time buyer looking to get a mortgage  .

I phoned a mortgage broker on Monday and told as I have received the SEISS grants it will make getting mortgage extremely difficult at the moment .

The broker said to hold off for a few of months and see if business picks up when the lockdown is lifted as the lenders may ask to see my bank statements for those months plus he’ll  hopefully know more by then  . I have got a deposit of around 50% but was told it would not make any difference .

My business has been quiet over the lockdown periods  as I have not been able to source stock or allow people to collect / view items in person( currently around 40 % down on last year ).

My concern is that if I accept the 4th grant ( if there is one ) will make things worse or has the damage already been done and it wont make a difference .

After saving for so many years and going without it seems as thought it as has been taken away from me through no fault of my own.

Any advice or help would be much appreciated

 

Joeisaware539

Shaps said:

Can anyone please give me some advice .

I  am a 40 year old self employed ( sole trader ) first time buyer looking to get a mortgage  .

I phoned a mortgage broker on Monday and told as I have received the SEISS grants it will make getting mortgage extremely difficult at the moment .

The broker said to hold off for a few of months and see if business picks up when the lockdown is lifted as the lenders may ask to see my bank statements for those months plus he’ll  hopefully know more by then  . I have got a deposit of around 50% but was told it would not make any difference .

My business has been quiet over the lockdown periods  as I have not been able to source stock or allow people to collect / view items in person( currently around 40 % down on last year ).

My concern is that if I accept the 4th grant ( if there is one ) will make things worse or has the damage already been done and it wont make a difference .

After saving for so many years and going without it seems as thought it as has been taken away from me through no fault of my own.

Any advice or help would be much appreciated

 

Take the grants to survive and let Covid 19 pandemic to pass. Lenders criteria is only extremely tight at moment due to all risks. 

MWT

The lenders will be looking for proof that your business has fully returned to 'normal' at the point when you do apply for a mortgage, but if it takes another grant to get you through then you should take it.

No point in foregoing the support available and then have the business fail.

Of course if the grants just represented 'free money' that was not needed they should not have been taken in the first place, but I don't get the feeling that is true for you.

In short, yes, damage has already been done, but if it was unavoidable to ensure the continued prospect of the business surviving and prospering after lock-down then it was appropriate.

Get the business back to pre-covid levels of income then go looking for a mortgage...

K_S

@shaps If your business has been significantly affected by the current lockdown, having taken a SEISS grant or not is unlikely to be the deciding factor.

In your place I would do what's needed to keep the business (and yourself) afloat and ready to resume, and that's likely to be the best course of action for your mortgage chances as well at a future point in time.

ACG

I agree with KS. 
You have 2 issues, the SEISS grant and the downturn in business.
You are effectively saying your business has been affected by covid in order to get the grant and your bank statements will evidence that, it is difficult for an underwriter to get onboard with lending to  someone whose business is down. 

I feel the irony when I type this but the priority is obviously keeping a roof over your head rather than a mortgage. The issue is more the downturn in business than the grants. 

_AandL_

We sent off a mortgage application last week and I have taken the Seiss grants. I’m still trading but at a smaller amount similar to you. 

Shaps

Thanks to you all for taking the time out to respond, will take all the advice on board hopefully restrictions will be lifted and get back to some normality. 

_AandL_

@Shaps Is it a single or joint application?

Shaps

_AandL_ said:

We sent off a mortgage application last week and I have taken the Seiss grants. I’m still trading but at a smaller amount similar to you. 

Did the broker / lender  take into account the Seiss or did they go off the last two years returns?  

_AandL_

Broker went off my last two years returns. Waiting to see what the lender says.

Shaps

_AandL_ said:

Broker went off my last two years returns. Waiting to see what the lender says.

Thanks, can you please let me know the outcome.