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Self Employed - Mortgages

(22 Posts)
escape Fri 17-Jan-14 14:57:15

I'm in a frustrating position.
I have a deposit for a house and a capability to repay a mortgage that would be much less than I pay now in private rental.
I am self employed and only have 2 years accounts.
The house we are in currently is woefully inadequate space wise, to ' upgrade' is going to cost me another £300 pcm rent, not impossible , but the absurdity of this compared to paying almost 50% less for a house of my own is driving me nuts.

Any positive stories or very recent experience of self employed mortgages from anyone please?

CogitoErgoSometimes Fri 17-Jan-14 17:23:26

There are lenders that specialise in the self-employed but you might need to contact an independent mortgage advisor to find them for you. Good luck

Suzietwo Fri 17-Jan-14 21:54:27

2 years book shd ge fine. I was approved 70% ltv with 18 months about 2 years ago, with halifax. Contact a broker.

TalkinPeace Fri 17-Jan-14 22:28:45

the current rules are 3 years for self employed
no budge space
hang on in there

escape Sat 18-Jan-14 12:25:46

Yes, TIP - as expected, but GOD, how frustrating.
Ooooh, and marvellously the market will be more competitive then... all pointing towards living abrade again tbh!

Suzietwo - encouraging ... smile

Suzietwo Sat 18-Jan-14 17:36:31

I'd contact a broker and see what they say, regardless of your circs.

Suzietwo Sat 18-Jan-14 17:38:24

I shd add, I work with 150 other self employed people of which many have got mortgages recently, without having 3 years books. So please don't feel discouraged by naysayers. If I remember I will dig out the name of the broker they used as he specialises in self employed/unusual circs.

TalkinPeace Sat 18-Jan-14 17:41:13

I'm an accountant who has to haggle with HMRC to get the new forms that self employed people have needed for mortgages since the summer when the rules changed ....
not just your common or garden naysayer wink

morethanpotatoprints Sat 18-Jan-14 17:45:16

I know it is easier if you become a LTD company and pay yourself a wage as you are employed then, not self employed.

TalkinPeace Sat 18-Jan-14 17:47:30

yes but then you have to explain to the broker why dividends come out on odd dates and the salary is stuff all wink

Suzietwo Sat 18-Jan-14 17:49:45

I do appreciate your vast experience but sometimes it's worth giving things a punt. I know people who have got them within the last few months with only 12 months. Either I'm lying, they're lying, or it's worth giving it a go. I know that I would at least give it a go. But wth do I know

I am not getting into another cripple fight with you though.

TalkinPeace Sat 18-Jan-14 17:50:50

lol - if there are brokers who have found a way round it, they should be named and praised and we'll all send people to their door as I think the rules are stupid !

morethanpotatoprints Sat 18-Jan-14 21:32:10

Talkin, why would you take dividends out of a company as well as a salary or wage?

TalkinPeace Sat 18-Jan-14 21:40:51

Talkin, why would you take dividends out of a company as well as a salary or wage?
why wouldn't you : the whole point of the effective tax planning of limited companies is linked to the efficient use of dividends

only people with bad accountants take high salaries

Lonecatwithkitten Sun 19-Jan-14 09:20:19

I have had several mortgages as a self employed person and the most recent one (since the new rules) was horrifically painful. I ended up having to speak directly to the under writer to explain how to read accounts to them. To the level of the drawings are on line 9 of page 8.
Not only did they want 3 years worth of accounts, but my accountants projections for the next 2 years ( she just sent my business plans).

LauraBridges Sun 19-Jan-14 10:19:55

Yes and yes it is much harder than it used to be.
They may well want to see your tax returns for the last three years (and the form you get when you lodge one - forget the name - you can get the latest one of those on your on line HMRC account). Use a mortgage broker who specialises in loans for the self employed.
Also consider if you have a parent who might go on the mortgage jointly even if their share is only 1% as a kind of guarantor as one route if others fail. Also consider a buy to let instead if that would help you get on the property ladder as the rental income is counted as your income in assessing what you borrow.

Suzietwo Sun 19-Jan-14 11:46:26

I also think it helps if you are able to show at you SE business is the same as your employed business was.

Lonecatwithkitten Sun 19-Jan-14 14:43:43

Sadly Suzie it seems to make no difference if it is the same as employed, I was employed in the business for 7 years, a partner and self employed for 7 years, business has been running for 64 years! And still getting a mortgage was a nightmare. It was with a lender who had previously been very straight forward.

TalkinPeace Sun 19-Jan-14 15:34:37

I was last employed over 17 years ago ...

escape Sun 19-Jan-14 23:16:33

Thanks all for for insights..
Funny the BTL option was mentioned, as had thought about this.. would need a very low mortgage loan then, and the places I had my eye on, would make a profit/good yield..

Minefeld - just don't want a rejection on my credit file I have spent 3 years building up after living abroad for 10 years...

cuppateamum Tue 21-Jan-14 21:26:07

Hubby is self employed and has terrible financial past, we thought he was un-mortgageable, but we found one through a broker, London and Country, This was two years ago and I have no knowledge of recent changes for self emp folks but as a broker for tricky situations I'd certainly recommend them as being worth a try.

Suzietwo Wed 22-Jan-14 10:09:23

cuppa - Paul, who was the fabulous self employed bloke at L&C has left. which is a real shame because he was a genius.

havent managed to get the name of the guy my friend used recently as she has been unwell.

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