How large of a mortgage can I get as a self-employed YouTuber

[GlasgowLadette]

I worked for 20 years on fairly low salaries going sporadically up and down
between 12k and 35k depending on the year, and depending if I was in temp or permanent employment. It was an unstable working history and a great deal of my earnings went on the rising cost of rent in London.

Two years ago I quit work and left London, bought a small flat up north in cash (no mortgage), to pursue my YouTube hobby and became a full time YouTuber, self employed as a Sole Trader. I earned £125k the first year and £150k last year. (Yes, I pinch myself and kiss the ground every single day.) My accounts for both years have been recorded and submitted by an accountant.

After these two dream years where I have been able to save several thousand pounds every month for the first time in my life, I want to look into moving back to the London I love, and buy the nice 2-bed home that I could never previously afford.

When I sell my current property and add the cash to my savings (keeping a cushion of savings in the bank for myself) I will be able to provide a cash deposit at the present time of about £300k for my next home. I have no partner.

My question is - how much do you think I will be offered (if anything) with regards to a mortgage if I apply for one at this stage? I believe I can continue earning over 10k a month for several years, and on my current earnings I can easily afford a really substantial mortgage repayment each month. But I understand that from an outside perspective, the nature of the work and career in social media appears unstable, unpredictable, and I only have two years of history on a great monthly income accounted for.

The kind of properties I want to buy in London start at 530k, although I would prefer the ones that are priced at the 650k - 750k range.

If I am being unrealistic thinking that I can reach for those sort of homes in my current situation with a £300k deposit, then I will remain where I am until I have saved for a few more years. I am just itching to get back to London! However I will not compromise on location or quality and will stay put until I can afford what I want. I will just have to bide my time if I don't meet the criteria right now.

I'd be grateful for any advice if you have similar experience or work in mortgages!

And yes, I know I will need to approach an actual mortgage advisor, but I don't want to do that yet, which is why I am posting the question here, to hear the experience of others.

Thanks in advance!

(For privacy reasons, I won't be sharing the YT channel name!)

A quick look at google says that self employed can borrow 4 or 5 times their annual profit.

From what i’ve heard it’s not easy with regular banks. I don’t think they’ve kept up with the different nature of this type of self employment. I did hear other youtubers have recently gotten mortgages. Taliesin & Evitel mentioned in a video this year i think. Maybe DM or tweet them for advice on who they went with.

You will need 3 years of trading then will be able to borrow 4 to 5 times depending on the bank. You may need to go through a broker though.

I never advise any one to ever wait to get on or move up the property ladder - but I think you might be an exception.

interest rates are going to sky rocket in the next few years and house prices will stagnate - more likely tumble quite significantly.

If I were you I would save, save and save and move when all these fabulous houses are given away for a pittance. You will have no competition because mortgages will not be available. Cash will be king.

This ☝️ I'm self employed and bought a property 18 months ago. Had to provide 3 years worth of accounts and was able to borrow 4.5 x my annual earnings.

What do you do? gaming?

My husband is a self employed sole trader and we are just going through this process at the moment. We had to provide 2 years of accounts and have been told we are able to borrow 5x, possibly 5.5x. All through smaller banks, so slightly higher rates.

Oh, please tell us what field this is in?

I would wait and keep saving and try and grow your channel even more. You might not need a mortgage in 18 months time if you've got even more cash and the houses crash

Thanks for the advice and experiences shared so far everyone. It all helps for me to mull over the options!

I think as you have a large deposit you will likely be able to borrow 4x salary withonly two years of accounts. A mortgage advisor will know which lenders only ask for 2 years.

Go to a mortgage broker for self employed people. I was self employed and borrowed 450k with 365k deposit but I wasn't in a perceived to be volatile industry. However, I'm not sure that made a difference. I had 2 years accounts.

People are right though, 3 years accounts would likely make it easier but speak to a broker (or several brokers). Make sure it's one where you pay nothing unless they get you a mortgage though, do not pay for their advice!

I’m just being nosey as to what field your you tube channel is in! Although I understand you not wanting to share your channel name.

It might be worth checking out Evan Edinger‘s YT channel from 6 to 12 months ago, when he went through the process of buying with a mortgage in London (but I think he might have gone for a shared ownership scheme). In the end the biggest problem turned out to be getting a fire safety certificate that the mortgage lender would approve, it took 5 months, in the meantime he was vlogging from a series of short-term AirBnBs. I‘m sure he was pretty open about the amount he got approved for. He might also be happy to give you some private advice as a fellow YTer (or do a collab).

3 years if audited accounts and tax returns
they still don’t lend as much for me as as for my DH who is employed.

if you already have a house what about a buy to let in London now with a view to moving into it later( with your unconditional you can pay the mortgage down quickly). That’s what I did

You need a specialist mortgage broker who will be able to advise you. We used to contract and had to jump through so many extra hoops to get our new mortgage, even though it was the same amount as we were paying previously.