Getting a mortgage when self employed

[NinkyNonk1]

Does any one if a bank lends you less due to being self employed or you are treated the same as someone who is employed but earns the same?

Thanks!

You will ideally need 3 years of accounts - SA302s & tax year overviews - and then your income will be taken into account. There are limited lenders who will consider an application with only 1 year of books available.

In general (and I'm not an expert but I self employed) you need two or three years accounts and you probably won't be able to get the high Street deals but it is do able. A friend secured a hefty mortgage on her decent but not massive income self employed. Worth going through an independent broker. Some deal specifically in that market so seek them out. Good luck!

I went to a mortgage broker when I was initially self employed & only had 1 years worth of accounts.

It was Kensington they found for me.

But, it was VERY expensive. But I kept it for 2 years, then moved when I had 3 years of accounts.

I’ve just taken out a mortgage with the Cumberland recently. I can’t recommend them highly enough. They wanted two years SA302s and account overviews, which I printed off from my HMRC account.
I don’t think they cover the whole country but if you are in the area definitely give them a try. Their rates are really competitive too.

Yes you need your accounts and tax returns
A broker might be the best option

We got a mortgage with one of us self employed but they wanted higher deposit of 20%

you probably won’t be able to get the high street deals

Mine is comparable - I’m really pleased with what they could offer me.

We used Emma at Start Mortgages in Chiselhurst, South East London/Kent. She was amazing and really helped sort my partners accounts etc out (working with his accountant, she’s not a miracle worker lol!). Really recommend her if self employed as takes a good broker to get the best deals.

I used a broker and got a great deal with 3 years of accounts and a 25% deposit.

Got 3 years of accounts etc.

At least a 12% deposit for the house in mind at £250k.

Gross salary at £50k

It’s easier if you have a decent deposit. It tends to depend on what type of business it is as well! If you are a professional that’s in a rock solid profession like a dentist, I think they are going to be slightly more generous then if you had a high street shop!

Plumber if that helps!

Lending will be based on your net profit not gross.

*Got 3 years of accounts etc.

At least a 12% deposit for the house in mind at £250k.

Gross salary at £50k*

You'll be fine, as long as your credit is good. Go to a broker though to ensure you get the best deal.

Thanks numpty that's reassuring 😊 waiting for my mortgage guy to get back from his holidays so fingers crossed.

We got a mortgage through NatWest. OH is a self employed electrician. I'm employed but don't think that made a difference. Sum we've borrowed is a multiple of my pay and his net profits. Needed his SA302s for the last 3 years and his profit was taken as an average of the 3 years.

Use a broker, they can give you a better idea of which lenders are more likely to accept you. We finally got our mortgage offer today - DH is a contractor and I'm on mat leave so the application process was a bit drawn out but we got there in the end.

Plumber isn’t very risky. Other jobs are far more prone to the ups and downs of the economy.

I am self employed and DH is an employee. We got our mortgage last year from Natwest through a mortgage broker (we didn't have to pay him as his services were a perk from DH's job). I needed to bring the SA302s and the account overviews from HMRC for the last two years (I could have provided the paperwork for the last 4 years if they had asked). A very good rate, fixed for 5 years. We had a 25% deposit. All went well, we got the mortgage pretty fast, no problems at all.