Going self-employed can i get a mortgage?

Mum_of_3_3

Hi!

OK just a bit of info first (I'll try to keep it as short as I can!).

My partner has been self-employed since he was 16 (about 32 years!) and currently had a taxable income of £23,000 for his year ended 2007. From the look of this years accounts I think he will be earning about the same.

I have always been employed, but due to childcare costs etc going back to what I did just doesn't make financial sense, so as of April I will be going self-employed as this way I can earn nearly twice as much per hour as I was working for other people.
I have just landed a job that (without going into the ins & outs) means that I will be working 1 day a week gradually increasing to 3 days a week then 4weeks full-time until I graduate back to 1 day a week and finally finish about October time).
I have worked out that I should earn about £8,000 for this contract and with other smaller jobs on the side bringing in about £2,500 the total I expect to earn by net April will be £10,500.

The thing is we now have a £76k mortgage with HSBC on a property worth £150k (we had it valued very recently).
Our fixed rate ends in the next few months and when I went to HSBC the other day to see if we could borrow an extra £10,000 to add an extra bedroom extension we have planning for I was told that not only coul dthey not lend us the extra £10,000 but that as I would be newly self-employed they wouldn't even lend us the £76k we already have :eek: . Then she added that HSBC will not take my earnings into consideration until I have 3 years worth of accounts!

Does anyone know here know if anyone will take my projected self-employment earnings into consideration and would lend us the £85k we would ideally like or would we be better off just sticking with HSBC's variable rate of 6.75% when the fixed rate finishes (which I know means we will have to forego the extension)?

Thanks for reading that lot! Any advice would be very much appreciated

M_o_3

NeilQuinn

If you have no other loans & clean credit, you should try Halifax or Abbey. They might well do it on a fast-track just using your husband's income.

17Dave

Quite a few lenders will do around 4 times income - if your hubby is established and has accounts there should be no problem. Suprised at HSBCs attitude especially if you have a good record with them.

Start looking for a new deal now - get a fee free broker to help.

herbiesjp

You should be fine just on OHs income, as long as good credit history and no other debts, especially as it is borrowing ony 57% of the value

Mum_of_3_3

Thanks for all your replies!

I think the problem is that we have £9k on a HSBC card. I assured the woman that £5k would be going to pay off the CC and the balance was enough to buy the materials for the extension (other half is a builder & will work on it as & when) and with my wages coming in we are determined to pay off the other £5k asap.

I tried to tell her that I should be bringing in about £875 each month, but she didn't want to know.

The only thing she kept saying is no we can't lend it on a mortgage, but I'm sure we could loan it. We kept repeating the fact that although this may clear quicker than our mortgage, we couldn't afford the repayments of a loan without having to really, really tighten our belts and stalling pension payments etc.

She then told me to do an income/outgoings things (which I told her I had sat down & done the previous evening), but she then said "But you can't include your income on this you know that!" :mad:

I guess I have now given up on HSBC & just wanted to know if there were any other lenders out there or whether they would all be the same and wether self-certs are at such a huge interest rate that it makes them last-choice deals.

So thanks guys for the advice, I'll have a look around once I've settled into my job for a few months I think at least then I'll have some invoices to show them I suppose.

Thanks again for the advice.

M_o_3