Any mortgage brokers around who could clarify something for me?

[Porkee]

If I were to joing a business as a partner and be considered self employed, would I need to be a partner at said business for 2 years before getting a mortgage or is it just the business itself that needs to be able to show 2 years worth of accounts?

As it is already an established business there are more than two years accounts available.

I am not a mortgage broker but as far as I know you will also have to provide the last two years personal tax returns to back up the dividend showed on the accounts.

It's a partnership so no dividends

But your share of the profits should be declared on your tax return.

Not necessarily, is it in the same role that you are currently in ?

How are you being paid via the business? Is it a limited company and you are a co-director or other role?

So in our situation, mortgage broker wanted to see two years of tax returns. During this time, dh was self-employed as a sole trader and then it became a limited company with him as director. He had to show tax returns from those two years (plus bank statements). I would assume that they would be most interested in your two years' worth of earnings, so the two years before now when you were presumably doing something different (and not a partner in the business). It may be problematic that you don't have two years in the business to show if that is your only/primary source of income. I would expect they may also want to see the tax statements from the business too, to make sure it is viable. They may be a bit tricky about lending to you if this is a new venture for you, but as long as you have income of some sort to show from the past few years, there will likely be someone to lend to you, assuming everything is aboveboard.

It does depend on how the company is being run though. I know someone who has been in business for years and years. His accountant has been very good about making it look like the business doesn't make much so that he has avoided paying much in tax. Except when it came to getting a mortgage, he couldn't get anyone to lend to him because his accounts didn't show much. He was making money, but it didn't look like he did. He now has to wait another two years until he can show returns that demonstrate the business is making money.

You’ve got to show two years for yourself. So your income that you bring home.

It’s based on your personal employment earnings, not the business.

So if you haven’t been earning any money for 2 years e.g. SAHP then don’t apply for a mortgage yet.

If you’ve been earning in a different job but are now working for /a director of the new company, then it shouldn’t be an issue, although you may need a good broker if both you and your partner are self-employed.

Doesn’t matter about job before self employment you still need two years for the self employment so show consistency.
What kind of company is it? Sounds like an MLM

Hey, I am a mortgage broker, if it can be treated as a continuation of the same employment it can make a big difference

It's not an MLM. It's an established family business which has been going for a number of years which I'm joining and taking a share of.

There will be no employment gap, I'm employed currently and will move straight onto this. I could technically be employed by the business as they do have employees but I'd prefer not.

I already have a mortgage so not in any desperate rush, but would like to move soon if I can but not the end of the world if I can't.

Was just curious as the business has more than two years accounts if that would satisfy that requirement.

Thanks so much for the replies.