Mortgage - Prior year self assessment mixed income source

doherty81

Hi there,

I'm currently self employed and looking at moving home and taking out a new mortgage.

In April I will have 2 years self assessments which have been files, the current year will be 100% self employed income, the prior year was around 50% employed and 50% self employed.

When it comes to affordability and lending does anyone know when the banks are looking at having 2 years self assessments will they take into account all of last years income (so both the employed income and self employed) or just the self employed portion of it? Or is it dependant on the bank?

Thanks, 

kingstreet

Only income which is continuing.

If the employed income has ended it won't be allowable.

doherty81

kingstreet said:

Only income which is continuing.

If the employed income has ended it won't be allowable.

Thanks for the reply, yes the employed income is not continuing I moved to focus on the self employed aspect.

Based on this it may drag down how much I can borrow, as although overall last year was solid if only part of the overall income was taken into account it does reduce it down. I was hoping it would have taken total income received from the self assessment return not just the self employed portion.

kingstreet

Some lenders will work from latest year, rather than an average. Get some advice from an independent broker who will be able to find the right lender for you.