Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think someone should give me a mortgage

54 replies

quittinaeete · 09/03/2019 13:10

Own my own house outright but want to move to a slightly more expensive one.

Will be a tiny mortgage but I can't get anyone to lend to me as self employed. The first two years I made nothing but now making good money. But because the average over three years is under 12k no one will lend to me.

The mortgage will be just under 200 a month on a five year fixed and I would save enough to pay it off outright after the fix. Even if I did nmw work could easily cover the mortgage. Yet I know people on a lower income that have a string of interest only buy to lets and get mortgages without much Hassel.

OP posts:
Fluffyears · 09/03/2019 13:12

Contact a broker (one that doesn’t charge you but gets commission from the bank) they have better access to find this type of thing.

exwhyzed · 09/03/2019 13:13

Have you tried through a broker yet?

bugeyedbarber · 09/03/2019 13:24

Yes. It's fucking ridiculous. I'm a well-paid contractor who had a gap with mat leave. It was astounding how banks wouldn't touch me with a barge pole for a minuscule amount of additional lending because of that gap.

Get a broker. I can drop you a PM with details of a broker who will sort it for you. If he can't, nobody can. But I'm sure he'll make it work for you.

excitedtobehere · 09/03/2019 13:26

Banks won't take the risk at the moment. Wait out the Brexit transition and try again.

LordVoldetort · 09/03/2019 13:28

Do you have an account? We managed to get one when DP was self employed because his accountant could verify his income (I can’t remember the details of why/how) but we definitely got one.

Agree with getting a broker too.

Would you be able to get an interest only mortgage? And then save up and pay a lump sum off your actual mortgage (can you do that on interest only mortgage?)

BarbaraofSevillle · 09/03/2019 13:31

If you only need £12k could you just get a personal loan, tell them it is for home improvements and then buy the house with cash? The interest rates are similar to mortgages often.

Aberforthsgoat · 09/03/2019 13:31

I feel your pain op.
If I’d been on my own I don’t think I’d get anywhere, as it is we have just not taken my salary into account because being self employed was causing way too much faff but appreciate we are very fortunate to be able to do that and it’s not an option for most people

I do understand why self employed people are a risk but also anyone can lose their job at any time! And as a freelancer it takes a while to get going a bit like starting on a lower tier and working up in a company, but banks are always really leery of lending.

I hope you can get a broker who can help!

Original poster
quittinaeete · 09/03/2019 13:52

I've tried a broker and they were just like come back in a year then you're average wage will make it easy. Yes please @bugeyedbarber a great broker recomendation would be good!

I know they are risk averse, but a "pemie" job really has little more security than mine - espically if it's been less than two years.

Next to no risk with mine as it's a 10% mortgage and a tiny amount to pay back a month but there really isn't any products that match it. Might have to get a personal loan but need to borrow just over 25k and that's the most my bank loan out

OP posts:
moosesormeece · 09/03/2019 13:54

I'm employed but have a weirdly fluctuating income due to commission and bonuses, and Halifax were unfussy enough to give me a 95% mortgage - might be worth a try?

DontCallMeCharlotte · 09/03/2019 13:55

What does "pemie" mean? (Genuine question). I'm guessing it's like PAYE?

EmmaC78 · 09/03/2019 14:01

What does "pemie" mean? (Genuine question). I'm guessing it's like PAYE?

Permenant

bugeyedbarber · 09/03/2019 14:39

@quittinaeete - pm sent. Good luck.

NannyRed · 09/03/2019 14:43

Would your bank give you a loan for such a small amount? I’m not sure if it would be cheaper or more expensive because I’m rubbish with money but £200 a month for five years is not a large amount you’re asking to borrow.

Justaboy · 09/03/2019 14:48

All banks! spit;! and building socities are intrested in is if they lend money they can get it back so that means security.

OK you own your place already so that has value, if the value of that is greater than the loan them I cannot see why they won't play ball?

There will be a chage [places on your owned place so if you were ot defalt on the payments they can come and sell your place and then get their pound of flesh.

Its a pity that they can't see that more people will be self employed and have zero hours contracts even if employed thats no real security anymore firm's fall over all the time, goverment units face cutbacks so why discrimate againt self employed people??

soulrider · 09/03/2019 14:50

It does seem odd that a permanent job which you've held less than two years is not seen as a risk whilst only being self employed for that length of time is.

I'm a contractor and when we had to remortgage we were advised to stick with our existing lender to avoid any issues. Our monthly mortgage amount was equal to my day rate at the time but i'd only been a contractor for 18 months.

DogInATent · 09/03/2019 15:00

You're only looking for 10% LTV on a five year term? i.e. you're buying a £250k property and have £225k cash and need £25k to bridge the difference.

If that's the case, then you're looking to borrow a fraction of the equity you'll own outright. I think you need to speak to someone face-to-face at a bank or building society and explain what you're wanting to do.

DontCallMeCharlotte · 09/03/2019 15:22

Thanks EmmaC78. That makes more sense.

Original poster
quittinaeete · 09/03/2019 15:38

It does seem odd that a permanent job which you've held less than two years is not seen as a risk whilst only being self employed for that length of time is

That's the annoying thing, it's not logical at all. What I earn in a day will cover it.

Yes that kind of amount dog, was planning for a 15 year mortgage just to make the monthly repayments low just to prepare for the worst case scenario and then overpay and save so that it could all be paid off in all after 5 years.

Thanks for the broker, might also try a bank in person - didn't know they had much control.

Would be annoying if I had to rent for a year and Chuck away 10k ish when I have lots of cash once the current house is sold

OP posts:
Bohemond · 09/03/2019 15:44

Perhaps approach your own bank. I have always had a mortgage with my bank rather than anyone else. They know me and can look at 20 years of my financial history not just what I put on a form.

acciocat · 09/03/2019 15:50

Yeah it’s annoying that it’s so difficult, though I can see that from the lender’s perspective it’s about stats- based risk

My dh went totally self employed shortly after we last took out a mortgage and while we were waiting on the house purchase to go through I was crossing fingers and toes nothing would hold it up because we needed our employment status for the mortgage offer - even though he earned significantly more freelance straight away.

jackparlabane · 09/03/2019 16:11

Try another broker - some mortgages will accept SE accounts for 2 years rather than three. It's possible you want too little money and the banks aren't interested.

ArgyMargy · 09/03/2019 16:13

Who on earth says "pemie" instead of permanent? No-one.

VanGoghsDog · 09/03/2019 16:19

I had this eighteen months ago and everyone said they knew a great broker who would be able to get me a mortgage but none could.

My issue was that I had a combination of employed roles and self employed work, average income well over £50k pa in the previous three years but just couldn't get them to understand the fact that I tend to flip from one to another.

Also, I only needed £50k and they are just not interested in such small loans. All the brokers I spoke to said they would have to charge me as the bank commission was too low on a loan that small.

Brexit has made it worse. Ironically I now work for one of the banks that turned me down and have seen their Brexit planning. The drawbridges are being pulled slowly up to ensure debts are fully leveraged in prep for an economic downturn.

In the end I used savings.

I suggest you don't sell now and save for a year by which time you'll have a better history and might be able to have just a bank loan instead of a mortgage.

Nquartz · 09/03/2019 16:20

We've always used London & Country when we've re-mortgaged, got us a great deal last time & all done over the phone so really convenient (think phone calls at 8pm to fit around our work etc).

Nquartz · 09/03/2019 16:21

Didn't cost us a penny either