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Original poster

Will we get a mortgage if DH is newly self employed??

15 replies

Wilkie · 29/07/2007 22:30

DH has an odd job and will become self employed once he finds a new job. We will have to move away for this.

Will we still be able to get a bigger mortgage? We currently have a 2 bed semi but want to buy a 3 bed house when we move.

How will we get a mortgage if he doesn't have books to prove his income?

OP posts:
CGOmum · 29/07/2007 23:48

you can but they tend to be with companies that offer mortgages to poor credit rating people. Had sim situation a few years back and ended up with Gmac on some 9% interest (killer). Can you get a mortgage offer in writing before he goes self employed?

bramblina · 30/07/2007 00:13

We're going through this too and found the royal bank of scotland very helpful. Had to get letters of intention from prospective customers though and our mortgage is less than £100k which is quite rare now and may have helped.

forsale · 30/07/2007 00:53

my dh started a new job in january this year which is a sales role. his basic is not good by any stretch of the imagination and as he had been in it less than 6 months our current lender were not even prepared to lend us what we currently owe if we wanted to buy another house despite the product being portable. so they wouldnt take the product from us but we couldnt move house with it - didnt know if this was normal. i would say look for a good considerate lender

LilyLoo · 31/07/2007 16:28

wilkie i would look around now and see if you can get an offer in principal before you move speak to an advisor they may be able to help you so you are prepared for when you move. My dp is an advisor if you don't already have one firstforfinance.net/

fizzylemonade · 31/07/2007 20:14

Wilkie we were advised by financial advisor to get the mortgage set up on current salary. We would be coming to the end of a fixed rate mortgage (4 months time) so we couldn't get one agreed until 3 months before the fixed rate ended.

We stuck with the lender we were with just so that they didn't need to re-go through our financial status again - ie no proof of income, they just assumed that my husband was still employed and not self employed.

If this is possible then do this. Our financial advisor was London and Country, they get their commission from the the product you take so no upfront fee to them.

MegBusset · 31/07/2007 20:23

Not an expert but we found Nationwide much more ready than other lenders to give us the mortgage we wanted (DH is self-employed). Also at the time he didn't have three years' accounts (had two) but got his accountant to do a projected income for him.

Alternatively, is self-certification an option?

BigGitDad · 31/07/2007 22:44

If you are putting down a reasonable deposit say 25% you should be able to get around it. Find a good mortgage broker who will know what to do.

silkcushion · 31/07/2007 22:50

Wilkie

This will be definitely more difficult. I agree you should do mortgage now before going self employed. Self certification (where you basically don't need to prove any income)almost always means you don't get a good interest rate. Think carefully about doing this as rates have gone up 5 times in the last 12 months already and are projected to go higher.

You don't want a crap mortgage deal that you struggle to repay. Also first 2 years of being self employed are always quite tight financially.

Original poster
Wilkie · 01/08/2007 10:05

Thanks for responses - have only just checked back

I guess you need a bit more info. DH is a golf pro so when he gets a Head Pro position he will get a retainer (£15-18k), his shop profits, his teaching profits and any playing profits so his salary will be a huge jump from now.

The previous Head Pro will have profits showing how much he made - can DH use these?

OP posts:
chocolateteapot · 01/08/2007 10:11

Wilkie, find a good financial advisor, recommendation from a friend or something. If you have over 25% as BigGitDad says, you can usually get something without too many problems on a decent rate. The financial advisors have access to some of the rates that the banks/ building societies offer that you might not see anywhere else.

LilyLoo · 01/08/2007 16:34

Wilkie mentioned this to dp and he didn't see a problem. Give him a ring his advice is free so you won't loose anything or you can email him on the link and see what he says. I would get advice now before his income changes as chocolate says they can get some better deals not oo the highstreet. He has just got a better deal for another mumsnetter on here.

Original poster
Wilkie · 01/08/2007 18:12

Thanks Lilyloo - will discuss with DH when he gets home tonight. Thank you

OP posts:
sarkin · 01/08/2007 21:22

As long as you have 10% equity you can get a self cert mortgage. Best rate at the moment is 5.99% with £999 arangement fee, val fee is £295

Original poster
Wilkie · 02/08/2007 07:54

Who is that with Sarkin?

OP posts:
sarkin · 02/08/2007 17:55

Its an exclusive broker deal with GMAC there are lower self cert rates about but they have massive arrangement fees

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