Getting a Mortgage

Jojo1843

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. 

Snookie12cat

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

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. 

Jojo1843

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

Much easier to get a mortgage while employed, once self employed well that’s a different kettle of fish.