Nightmare trying to get a mortgage as only making money in 3rd year of self employment

[089ville]

I'm trying to get a small mortgage (less than 250 a month)

But I'm self employed. The first two years I made next to nothing as was building it up. Now on course to make over 100k profit (before tax) but because it's for the current year it doesn't count.

Year one 6k profit
Year two 12 k profit
Year three just may to July 42k profit

But still can't seem to get a small mortgage for 35k with a LTV of 12%.

It's pretty annoying as my income will be pretty consistent and will definitely be able to afford 250 a month with no debts and small outgoings. Will easily save enough this month to pay the mortgage for a whole year.

Am I just out of luck until this financial year ends? Seems crazy as a a paye job doesn't really have any security at all and there's no way on earth I can't afford £250 a month and even if I couldn't there's loads of equity in the house

You could look at the lender Pepper as they just go by the latest years accounts

I'm in a similar situation and was told that 3 months payslips were fine as long as I could prove I had been in the 'industry' for more than 1 year, and as it was a specialised role it was likely that I would remain in that sector.

Have you spoken to a mortgage broker? I was rejected pretty much across the board until I got one and am now with a high street bank.

Good luck!

I got a mortgage using a specialist broker for the self employed. Let me know if you want to know who it is, I think I've got a referral email somewhere.

Are you using a broker? A good one should be able to help you navigate this. Ours is completely brilliant and got us our mortgage despite DH's erratic self-employed income. Happy to pass on his details if you pm me.

No I'm not using a broker, any good recommendations please do pm me. I spoke to my bank manager at the nationwide and they were useless despite making loads this year and having a huge chunk in the bank

If you have that much income and need such a small mortgage I’d be tempted to save up quick and buy for cash.

Nationwide are useless with self employed, definitely get a broker, a good one will easily sort you out.

Get a broker. I managed to get a mortgage as a self-employed person with two building societies.