Self Employed 1 year accounts

stephjet82

Hi

I am wondering if anyone can advise on my situation please.

Incorporated a new business in Jul 2019, started trading Sept 2019. First year accounts filed in Jan 21 gross profit around £86,000. Already this year, 4 months in, profits sitting at around £40,000. I am the sole director, I also have a PAYE income from which I am furloughed. 

I have 2 satisfied defaults from 2019 Feb. I have tried to fight these but got nowhere, they are from NPower and total around £750. I paid what I thought was the final bill and moved address!

My question is, is there a lender that would consider my situation? I know I’d have more luck with 2 years accounts but my rented house is falling down around me and I am keen to move out as soon as possible.

10% deposit not an issue, 15% achievable. Not a first time buyer. No personal debt.

Thank you 

MWT

stephjet82 said:

... I also have a PAYE income from which I am furloughed. 

Presumably that is from employment elsewhere, not from your own company?

Do you have a return to work date and what level of income does that job provide? (assuming you intend to return to work there).

stephjet82

Yes this is from another job. No I don’t have a return date as I’ve opted to be furlough as long as possible due to the nature of that industry. 

K_S

stephjet82 said:

Hi
I am wondering if anyone can advise on my situation please.
Incorporated a new business in Jul 2019, started trading Sept 2019. First year accounts filed in Jan 21 gross profit around £86,000. Already this year, 4 months in, profits sitting at around £40,000. I am the sole director, I also have a PAYE income from which I am furloughed. 

I have 2 satisfied defaults from 2019 Feb. I have tried to fight these but got nowhere, they are from NPower and total around £750. I paid what I thought was the final bill and moved address!
My question is, is there a lender that would consider my situation? I know I’d have more luck with 2 years accounts but my rented house is falling down around me and I am keen to move out as soon as possible.
10% deposit not an issue, 15% achievable. Not a first time buyer. No personal debt.
Thank you 

@stephjet82 Quick thoughts

- With a clear credit history for 24 months, you should have a handful of lenders willing to consider the self-employed income. These lenders are unlikely to consider the PAYE income

- 10% deposit is likely to be a struggle, 15% is where you want to be

- the lenders will differ in their approach to the SE income, usually one of the following - net profit plus director salary, or director sal+dividends

How much are you looking to borrow?

stephjet82

K_S said:

stephjet82 said:

Hi
I am wondering if anyone can advise on my situation please.
Incorporated a new business in Jul 2019, started trading Sept 2019. First year accounts filed in Jan 21 gross profit around £86,000. Already this year, 4 months in, profits sitting at around £40,000. I am the sole director, I also have a PAYE income from which I am furloughed. 

I have 2 satisfied defaults from 2019 Feb. I have tried to fight these but got nowhere, they are from NPower and total around £750. I paid what I thought was the final bill and moved address!
My question is, is there a lender that would consider my situation? I know I’d have more luck with 2 years accounts but my rented house is falling down around me and I am keen to move out as soon as possible.
10% deposit not an issue, 15% achievable. Not a first time buyer. No personal debt.
Thank you 

@stephjet82 Quick thoughts

- With a clear credit history for 24 months, you should have a handful of lenders willing to consider the self-employed income. These lenders are unlikely to consider the PAYE income

- 10% deposit is likely to be a struggle, 15% is where you want to be

- the lenders will differ in their approach to the SE income, usually one of the following - net profit plus director salary, or director sal+dividends

How much are you looking to borrow?

Thanks this is great.
Looking to borrow top end of affordability owing to the house prices locally and the need to stay local for school. 15% not a problem if will open up options.