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Self employed mortgage help!

7 replies

clutterbugs · 07/06/2018 17:17

Desperately want to move, both self employed with a limited company (think retail shop) each, both taking a small wage and as of this year alone a decent dividend, one account in this month and the other year end next April but that will also will show a decent dividend with enough for the mortgage calculator. Have 5 years of books looking a little better each year but it'll only be this year showing real growth.

The mortgage we have currently was agreed before self employment, no missed payments and both have excellent credit scores. The businesses have zero debt if it matters and machinery/stock in excess of £100k. The books look pretty grim until now as we built it from scratch and expanded, bought the physical shop and renovated, added all the machinery and the costs of that came from all the takings, the downside being both show a loss in the first years (only taking the small wage) and only now showing affordability for the higher mortgage we want to get in December.

Can anyone advise if we have a shot at getting a mortgage based on the current earnings we have or will they take an average from the last 3 years? It's so frustrating and confusing!

Accountant thinks until we're 3 years in with current earnings they won't consider us for the amount we need but admitted he's got no experience since they stopped self cert. Getting in touch with a broker in the next week but want to know if he'll laugh us out. Tia!

OP posts:
user1484247439 · 07/06/2018 17:30

Hi, we're in the process of doing this, our last year earnings are good but the year before was rubbish.

You need a good mortgage advisor as they'll know which lenders will be most likely to lend you.

There are mortgages available on just one years earnings.

Elena2010 · 07/06/2018 17:49

Contractor mortgages are the best. They have managed to secure 2 mortgages and 2 remortgages. We are both self employed. Good luck Smile

TeeBee · 07/06/2018 18:23

I'm self-employed. I needed 3 years of accounts showing I could cover the amount that I wanted.

clutterbugs · 07/06/2018 18:42

Thanks for the replies, @Elena2010 what's a contractor mortgage? The broker our accountant recommended apparently specialises in self employed so I'm really hoping he can find something, preferably without a stupidly high interest rate.

Just feeling like we've acted as sensibly as possible and it's come back to bite us, if we'd put the business in debt and kept wages up we'd be in a better position to get one. So frustrating!!

OP posts:
Namechanger2015 · 07/06/2018 18:59

I just got one, I am self-employed under a limited company and am also a single parent. Rubbish income for 2 years and stepped up to a decent income in year 3. I got it via a fab broker.

Misty9 · 07/06/2018 23:17

We used CMME (i think they used to be contractor financials or something) and they got us our mortgage with the Halifax with barely two years of books.

theluggageslegs · 08/06/2018 08:01

We are both self employed, tricky circs and AMS mortgages found us a decent deal recently.

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