Self employed mortgage - where to begin...

Susieee

I'm self employed and profits for financial years are as follows:
21/22 £64,975.00
20/21 £40,617.00
19/20 £11,564.00

My partner has been working for Hays Recruitment for around 4 months now. It's a recruitment agency and I am not sure how permanent or temporary her work is. There are a lot of her collegeagues that have been there for years under the same contract. She sees her job as very stable but not sure how mortgage companies will see it. Her earnings are hard to work out as they take money out for holiday pay. Her hourly rate is £15.12 and she gets paid for 35 hours.

We have had an offer on a house accepted for £251,000. Our deposit will be coming from my uncle. We can do 15% or even 20% but prefer the lower amount. I'm waiting on my mother to sell her house (she will give me all the money) so I can pay back my uncle.

Could anyone offer any advice on where to start looking? We aren't sure where to look and what deals to look for? Fixed, variable, how many years etc etc. I am 43 and my wife is 39. We are first time buyers.

Any help will be greatly appreciated. Very confused person here.

Susieee

Apologies, the offer that's been accepted is £255,000.

K_S

@susiee I'm not saying you can't do it yourself but is there any reason you aren't considering the use of a broker to find the most cost-effective lender that will lend for your circumstances? If you don't want to pay a fee there are plenty of fee-free brokers recommended on the MSE guidance here 
https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

A good broker will answer your concerns re term, kind of rate, etc. as well and give appropriate advice.

Given the limited info in your post, it should be fairly straightforward to borrow the amount you require on the income stated.

Unless one of you has adverse credit history, 15% or 20% deposit should not make a difference to your options in this scenario.

Whether or not your partner will limit your choice of lenders will depend on the specifics of her employment contract and (if on a fixed term contract), her employment history. Depending on the numbers, you may be fine just on your sole income as well (your partner can still be on the application).

Most lenders will not consider a family loan as an acceptable source of deposit. But a gift from a relative is fine.

Irrespective of the route you choose, broker or direct, good luck!

Susieee

K_S said:

The vast majority of lenders will not consider a family loan as an acceptable source of deposit. But a gift from a relative is fine.

Thanks for the information. The money will just be transferred into my account. I can just call it a gift, is that correct?

I will take a look at the link you sent me but does that search all products available or can only a broker do that for me?

I am happy to be contacted by advisers on this board by the way

Susieee

I'm currently using the MSE tool to look for deals.

I'm going to go for a 5 or 10 year fixed rate deal as I think interest rates will rise and stay there for a number of years (maybe 5 at a guess). However, we are looking to move from this property into something bigger in 1-2 years time. So would a portable mortgage be the best option? Is there a list of providers who offer portable deals? I would just want to port the mortgage to a new property for 5-10 years

Susieee

Dudley Building Society are offering a life of mortgage deal:

Initial rate

3.49%

For 300 months

Monthly payment

£1,211

For 300 months

Set-up fees

£450

One off

MSE total cost

£14,561

For year 1

APRC

3.6%

What is this?

Does this seem good value? 

DE_612183

I use CMME for contractor / self employed mortgages.

SlinkyWeevil

We have just received our mortgage offer last week from NatWest, FTB in ours 30s and we submitted via a broker because one of us is self employed (sole trader) and the other is employed and we didn’t really have a clue where to begin.  

As it happened, when we actually came to submit the application, a lot of the rates we wanted had been pulled and/or lending criteria had changed so suddenly we had a dwindling list of lenders to pick from compared to when we got our very first DIP. 

In our case, our broker only gets paid by us once we have the offer and I honestly cannot fault him, he’s been fantastic over the 18months we’ve been looking.  

We also have a gifted deposit by the way, and in the end it’s taken about 6 weeks from start to finish to get an offer. 

simon_or

OP, another vote for using a broker. It's pointless tying yourself in knots trying to find out the best bank for your situation. 

A good one is worth their weight in gold, at least mine is.

I've a mix of self employed (director), p/t employed and rental income, stoozing in the background plus a complicated credit history and my broker gets me what I need every time with minimal stress.

No fees either as they're a small independent with very low overheads and rely on word of mouth, no advertising.

Given your very healthy profits and three years trading, I suspect you may not even need the second income for the 200k you're looking to borrow.

Edi81

OP This may sound rude but it’s coming from a good place. 

You sound clueless about a mortgage. A broker is your best option. 

In response to your life of mortgage question it depends on what future plans you may have to move, what the ERC is. 

amnblog

I am happy to be contacted by advisers on this board by the way

The Board isn't happy for them to contact you.

Use a Broker or you are going to get this wrong.