Mortgage question self employed v employed

(10 Posts)
Slowlybutsurely Wed 12-Aug-15 16:14:19

Wonder if anyone can help with this one. Husband is self employed and we have been given mortgage in principal from Halifax through a broker who deals with contractors in his line of work. however, for one reason or another we will not be looking to compete on our mortgage until May next year so we cannot do full application yet as its my understanding the offer only lasts 6 months? In the meantime, there is a likelihood that he may change from self employed to working for a company again. However, when we apply for mortgage he will only have been in this job 2 months or so.
Is it better for him to stay self employed until we have bought the house it will
Mortgage company be ok with the 2 months. The take home pay will be approx the same? We would obviously also not be eligible for the contractor mortgage either.
Help!

Slowlybutsurely Wed 12-Aug-15 16:15:05

Apologies for typos, typing on phone!!

wowfudge Wed 12-Aug-15 16:54:50

Ask your broker - it is probably less risky from a lender's point of view to give a mortgage to someone who is employed and there must be some sort of conversion available with the lender.

With the best will in the world, even if you find a house you want to buy you may not be able to complete by May next year. If his length of employment is an issue then waiting a few months more would be worth it to secure the mortgage you need.

felkov Wed 12-Aug-15 18:53:47

i have recently had major problems with mortgage apolications due to DH being self employed but not long enough to have 2 yrs of accounts. the bank then wanted 5 yrs of his previous contracts and 5 yrs of tax returns despite him being a normal employee until last yr when he went self employed

HonniBee Wed 12-Aug-15 19:01:58

My husband went from self employed to limited company this year. We were allowed to use his self employed tax returns for 18months after they were filed. Our broker went through nationwide for this (apparently the only one that would let us use his tax returns despite his change in employment status). Much more complicated to buy if you are self employed!

Slowlybutsurely Wed 12-Aug-15 19:39:49

Thank you so much for your responses. It's such a minefield isn't it! He's been self employed since 2008 so we have all the accounts. But I'm worried if he accepts this new job then that will count for nothing and they'll just look at the fact he's only been employed for a couple of months. I wish we could buy now and then we would be ok (in theory) but we can't!

WishICouldThinkOfACoolUsername Wed 12-Aug-15 21:41:48

If it helps, 3 months of payslips OR a letter stating a FT perm contract along with the first payslip of new job was what I had to produce recently.

Slowlybutsurely Wed 12-Aug-15 21:59:16

That does help! Thank you!

didireallysaythat Wed 12-Aug-15 22:15:57

Do you know what the probationary period at the new job is likely to be ? Some mortgage providers are nervous about offering while still on probation but your broker should advise.

Slowlybutsurely Wed 12-Aug-15 22:36:05

Good point, something else to ask about! Thank you!

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now