Advice on getting a mortgage self employed

Llihl13

My house sale recently fell through as my original buyer pulled out. I’ve now got a new offer from a young couple who seem really keen, although he’s a self employed plumber and only started his books in September 2021. I believe she qualified as an accountant in 2021.

I‘ve accepted their offer but to be honest I’m worried about them being approved for a mortgage if he’s self employed, especially after the sale falling through once already AND the face interest rates are due to rise again. The agent has told me they’ve got an agreement in principle but I’m aware this doesn’t mean much. 

Has anyone recently got a mortgage being self employed? Or does anyone have any advice on what they would do here? Thanks!

Zerforax

There are specialist mortgage brokers who can help with self-employed income.

DullGreyGuy

As director/owner of a company banks treat us almost the same as self employed, the form we filled in was titled self employed applicant, even though legally we arent.

All comes down to results, duration, LTV, the other applicants employment status and what proportion of income is coming from which of the two applicants.

We had no issues getting a substantial mortgage as a bank considered self employed person but had nearly a decade of trading results. 

Llihl13

DullGreyGuy said:

As director/owner of a company banks treat us almost the same as self employed, the form we filled in was titled self employed applicant, even though legally we arent.

All comes down to results, duration, LTV, the other applicants employment status and what proportion of income is coming from which of the two applicants.

We had no issues getting a substantial mortgage as a bank considered self employed person but had nearly a decade of trading results. 

This is my concern as he’s only got 18 months of trading results. I don’t know what their LTV is but the agent never mentioned them having a large deposit. 

How long did it take for your mortgage offer to come through? Think it might just be a case of waiting it out, but my onward chain is getting impatient!

DE_612183

Try CMME - used them a couple of times,

Llihl13

DE_612183 said:

Try CMME - used them a couple of times,

It’s for my buyer and I don’t have direct contact with them but I’ll pass it onto my agent. They are currently speaking to a mortgage advisor - is CMME an advisor specialising in SE?

amnblog

There are lenders that will work with this limited self employed history. With two applicants, the mortgage may be affordable solely on the other party's income anyway.

Llihl13

amnblog said:

There are lenders that will work with this limited self employed history. With two applicants, the mortgage may be affordable solely on the other party's income anyway.

Thanks. Hopefully their mortgage advisor is clued up on lenders for self employed people! 

What I’m confused about is they have an appointment in the next few working days to sort the mortgage, but the agent mentioned something around him waiting for the new tax year. How would that work?

kingstreet

Llihl13 said:

amnblog said:

There are lenders that will work with this limited self employed history. With two applicants, the mortgage may be affordable solely on the other party's income anyway.

Thanks. Hopefully their mortgage advisor is clued up on lenders for self employed people! 

What I’m confused about is they have an appointment in the next few working days to sort the mortgage, but the agent mentioned something around him waiting for the new tax year. How would that work?

On 6 April he can submit his 22/23 tax return and get another year's income. This may help expand the lender pool open to them.

Llihl13

@kingstreet thanks - do you know how long it might take to process his tax return? My developer is pushing me to exchange in 4 weeks!

[Deleted User]

That's an unrealistic timescale.
The transaction time can't really be predicted, too many variables.