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    • HappyMJ
    • By HappyMJ 12th Jun 12, 11:42 AM
    • 20,595 Posts
    • 17,201 Thanks
    HappyMJ
    • #2
    • 12th Jun 12, 11:42 AM
    • #2
    • 12th Jun 12, 11:42 AM
    Hello all,

    I am now self employed, after being in employment with various organisations for 5 years. But it has only been 4 months, and I want to get a mortgage...is that possible? If so how?

    Thanks to all!
    Chanki.
    Originally posted by chanki25
    It is possible if you have fixed term contracts with your clients and you have a deposit of at least 25%.

    Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money.
    • Wh05apk
    • By Wh05apk 12th Jun 12, 12:08 PM
    • 2,912 Posts
    • 1,322 Thanks
    Wh05apk
    • #3
    • 12th Jun 12, 12:08 PM
    • #3
    • 12th Jun 12, 12:08 PM
    It is possible if you have fixed term contracts with your clients and you have a deposit of at least 25%.
    Originally posted by HappyMJ
    Is it?

    As far as I know you will need at least 1 years accounts, you may find your own bank may be able to lend without proof of income based on funds flowing through your account.
    I am a mortgage adviser.

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • chanki25
    • #4
    • 12th Jun 12, 1:09 PM
    • #4
    • 12th Jun 12, 1:09 PM
    I am now in retail...so no real fixed term clients...

    and already asked my bank, and that didn't work out. They can't help self-employed people (HSBC), need a full time employment or at least 1 year's accounts from my accountant... which is why I am scratching my head hard times...
    • Dave Ham
    • By Dave Ham 12th Jun 12, 1:13 PM
    • 6,015 Posts
    • 2,841 Thanks
    Dave Ham
    • #5
    • 12th Jun 12, 1:13 PM
    • #5
    • 12th Jun 12, 1:13 PM
    It will come down to your deposit.. If you have 10% this will be virtually impossible.

    With 15%+ there may be lenders that will consider this case indvidually but will depend upon more detail and underwrite the case in detail.

    The bigger the deposit, the more chance you will have..

    What sort of prices and deposit are you looking at...?
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • zxspeccy
    • By zxspeccy 12th Jun 12, 1:27 PM
    • 117 Posts
    • 84 Thanks
    zxspeccy
    • #6
    • 12th Jun 12, 1:27 PM
    • #6
    • 12th Jun 12, 1:27 PM
    Unfortunately what the bank have told you is correct and you will struggle with getting a mortgage at the moment.

    The question is do you want to burden yourself with a 25 year debt whilst starting up a business on your own. I would recommend you see how it goes, if your business is a success then you should be in a position to save up a nice deposit, which will help get you a decent mortgage interest rate. If it fails then thank your lucking stars that you didn’t commit yourself to a mortgage and go through the stress of a repossession order.

    Once you’ve got at least one set of audited accounts to show the bank, and a nice deposit save up then you will be in a much better position. A mortgage is for life and usually you just get one chance at it, if you end up losing your house then it is unlikely that you will be able to get on the property ladder for a very long time.
  • chanki25
    • #7
    • 12th Jun 12, 1:31 PM
    • #7
    • 12th Jun 12, 1:31 PM
    Yeah that's the thing, I am looking at properties that cost around 150k, and I can arrange for a 15k deposit...so will need to borrow the rest, 135k. I am a first time buyer too. I have been looking around if there were any sort of help for first time buyers, but couldn't really find anything except on brand new properties.
    • HappyMJ
    • By HappyMJ 12th Jun 12, 1:34 PM
    • 20,595 Posts
    • 17,201 Thanks
    HappyMJ
    • #8
    • 12th Jun 12, 1:34 PM
    • #8
    • 12th Jun 12, 1:34 PM
    Yeah that's the thing, I am looking at properties that cost around 150k, and I can arrange for a 15k deposit...so will need to borrow the rest, 135k. I am a first time buyer too. I have been looking around if there were any sort of help for first time buyers, but couldn't really find anything except on brand new properties.
    Originally posted by chanki25
    What is your turnover? What is your profit?

    Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money.
    • Wh05apk
    • By Wh05apk 12th Jun 12, 1:35 PM
    • 2,912 Posts
    • 1,322 Thanks
    Wh05apk
    • #9
    • 12th Jun 12, 1:35 PM
    • #9
    • 12th Jun 12, 1:35 PM
    at 90% I don't think you would stand a chance, also you say you can "arrange" the deposit? That also would not help, as lenders like to see you have saved the deposit yourself.
    I am a mortgage adviser.

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • chanki25
    Hmm, yeah all of this, isn't looking great.

    I should probably just wait for a whole year of accounts and try to get on the property ladder.

    Thanks to all for your help.
    • Dave Ham
    • By Dave Ham 12th Jun 12, 2:13 PM
    • 6,015 Posts
    • 2,841 Thanks
    Dave Ham
    Hmm, yeah all of this, isn't looking great.

    I should probably just wait for a whole year of accounts and try to get on the property ladder.

    Thanks to all for your help.
    Originally posted by chanki25

    Good luck - you are right on your assumption, not a good time now as you will just waste time and money.

    All the best
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Thrugelmir
    • By Thrugelmir 12th Jun 12, 6:45 PM
    • 64,931 Posts
    • 57,249 Thanks
    Thrugelmir
    I should probably just wait for a whole year of accounts and try to get on the property ladder.
    Originally posted by chanki25
    Suggest you establish the business first.

    Committing to mortgage too early may be a decision you regret.
    “If the financial system has a defect, it is that it reflects and magnifies what we human beings are like. Money amplifies our tendency to overreact, to swing from exuberance when things are going well to deep depression when they go wrong. Booms and busts are products, at root, of our emotional volatility.”
    ― Niall Ferguson
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