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Getting a Mortgage

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Hi. Just need advice. 

I am employed and I earn £45,000 year
I'm also self employed and earn £24,000 year (I have a Ltd company)

I am thinking of going fully self employed next month. 

I have been self employed for 4 years and employed for 2 years. During the last 2 years I did not take out a salary from my Ltd company as I was earning from my employed job. 

I am thinking of buying a £300,000 house with £90,000 deposit ( I have enough money for moving fees, solicitors and a rainy day). 

Will going fully self employed affect me getting a mortgage. Many thanks in advance. 

Comments

  • Jojo1843 said:
    Hi. Just need advice. 

    I am employed and I earn £45,000 year
    I'm also self employed and earn £24,000 year (I have a Ltd company)

    I am thinking of going fully self employed next month. 

    I have been self employed for 4 years and employed for 2 years. During the last 2 years I did not take out a salary from my Ltd company as I was earning from my employed job. 

    I am thinking of buying a £300,000 house with £90,000 deposit ( I have enough money for moving fees, solicitors and a rainy day). 

    Will going fully self employed affect me getting a mortgage. Many thanks in advance. 
    You are not going to have suitable returns to show the bank from your current Self Employed wage so unlikely you would get a loan of that amount.
  • ACG
    ACG Posts: 24,533 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    When you say you earn £24k self employed is that what you pull out as dividends or is that your profit? 

    For a £210k mortgage you will need an income of around £46k. So if your income or net profit is £24k, that wont be enough. If that is what you pull out of the business but the net profit is much higher then it might be possible to just use the self employed figures. 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ACG said:
    When you say you earn £24k self employed is that what you pull out as dividends or is that your profit? 

    For a £210k mortgage you will need an income of around £46k. So if your income or net profit is £24k, that wont be enough. If that is what you pull out of the business but the net profit is much higher then it might be possible to just use the self employed figures. 
    Thanks for the replies.

    £24k is profits. 

    Thanks in advance.
  • Sistergold
    Sistergold Posts: 2,135 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper Photogenic
    Much easier to get a mortgage while employed, once self employed well that’s a different kettle of fish. 
    Initial mortgage bal £487.5k, current £258k, target £243,750(halfway!)
    Mortgage start date first week of July 2019,
    Mortgage term 23yrs(end of June 2042🙇🏽♀️), 
    Target is to pay it off in 10years(by 2030🥳). 
    MFW#10 (2022/23 mfw#34)(2021 mfw#47)(2020 mfw#136)
    £12K in 2021 #54 (in 2020 #148)
    MFiT-T6#27
    To save £100K in 48months start 01/07/2020 Achieved 30/05/2023 👯♀️
    Am a single mom of 4. 
    Do not wait to buy a property, Buy a property and wait. 🤓
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