Newly self-employed

Eddie2023

Hello, my daughter was made redundant earlier this year and has since gone freelance (in the same line of work)

She currently lives in a one bed flat but with working from home needs somewhere bigger

We know most lenders won't look at her case without 2 years of accounts but are there any mainstream ones who would consider one year ? She would have a 30 % deposit and I am happy to act as guarantor or be on the mortgage (though I am late fifties and jointly own my home which I cannot use as security)

amnblog

Potentially, what does she do?

ACG

Adding you as a guarantor might open up more options, but probably wont open up lower rates. 
I think one years accounts with a 30% deposit should be doable at decent (by todays standard) rates. 

Eddie2023

amnblog said:

Potentially, what does she do?

Hello, she is a project manager - employed until redundancy, now freelance

Eddie2023

ACG said:

Adding you as a guarantor might open up more options, but probably wont open up lower rates. 
I think one years accounts with a 30% deposit should be doable at decent (by todays standard) rates. 

Thank you, that's good to hear. We've been told that the Halifax may be an option but I don't want her to get her hopes up. She was all set to look to move this year then the redundancy happened 

DullGreyGuy

Eddie2023 said:

amnblog said:

Potentially, what does she do?

Hello, she is a project manager - employed until redundancy, now freelance

By freelance you mean she is a day rate contractor? Working with one client at a time or a bunch of them?

(Assuming single client with list of options) is she via an umbrella, FTC, set up own LTD or sole trader?

What is the duration and end date of her current contract(s)?

Also a contractor PM here, dealing with a different type of underwriter I was asked to provide proof of my employee life as a PM too initially. Our mortgage app was after 12 years of contracting but seems someone misread it somewhere in the supply chain as got an email saying "as you've been a director of a PSC for such a short time can you provide..." I just went back and suggested they went to a certain opticians as 12 years isn't a short time to which point they laughed and said it must have been misread but it wasn't a straight no either even when they thought it was 1 or 2 years (can't remember which)

Eddie2023

Hello, she's a sole trader charging a day rate for several clients - all have end dates in Q1 2024 but with new projects being discussed now with the same clients. She's looking to apply for a mortgage April 2024 if the work continues (or get a job if it doesn't, which takes the problem away !)

Misreading 12 yrs - you're right about the opticians 😊

ACG

Halifax criteria is 2 years. 
They can make an exception, but its not a given. I think there are more likely options personally. 

That being said as a day rate contractor there may be options now if she wants to look sooner. Although I think what she needs to consider is being able to do something and doing it are very different. Newly self employed with no guaranteed work beyond the next 3-4 months in the current climate... They may be options to just base the work on the contract work rather than accounts, but just weigh up the pros and cons. She should speak to a broker though if she wants to press ahead, it wont be for every lender. 

Eddie2023

Hi, thank you for your help. I'll get her to contact a broker. Thank you again