Is it possible for me to get a mortgage?

Girlofthenorth

Hi all, looking for some advice for people in the know! 

I'm a self-employed freelance designer, I've got a few years of tax returns 17/18 wasn't great income of £7k, 18/19 £44k, 19/20 made a loss as i bought equipment to diversify the business and a 10k project got postponed along with the pandemic shutting down other work and clients.

Have I any hope of getting a mortgage with this up and down income? I get paid in lump sums so would either pay chunks off or let it sit in an account and the mortgage can eat away at it.
My credit score is Good, I have little outgoings, I own my car outright. The house would be under 100k. I have £5000 deposit and my family would match that if I meant I could get on the property ladder.
Thanks

MWT

See what the brokers have to say, but with only one year showing decent income and the most recent completed year showing a loss, along with at best only around 10% deposit it isn't looking good...

How do you think 20/21 is going to end up and did you make use of any of the government support schemes over the last year?

K_S

@Girlofthenorth Based on the limited info in your post, it's very unlikely that you'll get a high-LTV mortgage. Assuming you're a sole trader, what's 2020/21 looking like profit-wise?

csgohan4

generally you borrow 4.5x your gross income, not including debt, so you can work from there, however won't seem much for you at this time. 

stevenbecca

we've just applied with a lender that takes 3yrs accounts as an average, EXCEPT when profits aren't stable, i made a 20k profit then a 15k profit then a 17k profit, they will only lend on the 15k profit unfortunately. hopefully getting this years in before the mortgage offer is finalised then I'll have 3yrs increasing. 

Girlofthenorth

I'm unsure of how this year will pan out. I'm about to land a couple more projects but I think last year has done me in for any mortgage chances. 

I was also looking at cheap local auction properties circa 50k but still trying to figure out how I would finance. 

MWT

Girlofthenorth said:

I'm unsure of how this year will pan out...

When is your year end? ... I was assuming it was aligned with the tax years, but perhaps not?

K_S

Girlofthenorth said:

I'm unsure of how this year will pan out. I'm about to land a couple more projects but I think last year has done me in for any mortgage chances. 
I was also looking at cheap local auction properties circa 50k but still trying to figure out how I would finance.

@girlofthenorth Just so you are aware, that is a completely different kettle of fish with respect to the property finance aspect of it. The likelihood of being able to purchase such a property through a mainstream residential mortgage is very low.