Self employed mortgage

[KatyaZamolodchikova]

I know no one will be able to give me a definitive answer and I will speak to a mortgage advisor but there’s no point just yet. We want to move house. I work full time, I have a decent wage and could get a small mortgage on my income alone. DH has just bought the business he worked for. His wage hasn’t changed and he still gets paid via PAYE. Will this salary count in terms of getting a mortgage? Or will he need to provide 3-5 years of books? As it’s not a new business, just a management buy out will the books from before he took over be accepted? Or will we have to wait until we have 3 years books from taking over?

I just want a ball park figure so I can start wasting time on rightmove until we’re ready to sell (we have work to do on our existing house first)

Is he now a director?

He is. In face we both are. But we won’t be taking any dividends out of the business for the foreseeable future so can’t count on that.

So he'll need to show 2-3 years accounts to show that the company is solvent as well as three months pay slips. If you are not taking any dividends, is that because the company can't afford it?

Thank you so much. He has payslips. We have books. I just didn’t know if it would need to be books while he was MD or if they’d accept books from prior to the takeover.

We’re not taking dividends as we are paying back some of the cost of the purchase business from the profits as we couldn’t afford to raise the cost of the business upfront. A bit of a ‘buy now pay later’ arrangement. It’s complicated, but that’s the easy version!!

So he is still paid via PAYE - he is still an employee. If you only need the salary for the mortgage you should be able to do it on an employee basis. Only if he was fully self employed taking drawings from company and paying tax completely via tax return or if you wanted to included dividends income for the mortgage would you need two years of accountant prepared accounts.

he might own the business or director but he's an employee to the company you guys own.
that shouldn't be a problem, he can use his payslips as a proof of income.
workout both incomes on a mortgage calculator including any children allowance....etc if it's enough then you don't need to provide anything else.

Thank you all so much for your help. This is super reassuring and has increased our budget by quite a bit! Now I can really enjoy myself on rightmove. Just got to get our existing house ready for market now!