Mortgage being self employed?

[Bakingmomma101]

Hi guys. Didn’t know where to post this.
can anyone tell me how likely I am to get a mortgage being self employed? I don’t earn a great deal because I only work 2.5 days a week as a nail tech due to having 2 small children. Let’s say for example £1200 per month BEFORE taking off expenses/salon rent etc . I’ve been self employed for approx 10 years, always paid national insurance etc.

I don’t think I’m likely to get a mortgage and I’m terrified. I’m about to be a single mum - going through a divorce and having to sell the family home as neither me or my (soon to be) ex husband would afford it alone.

my solicitor at the free advice session said I MAY be able to as I can prove I’m earning a solid enough wage per month, PLUS the child maintenance which I will get from the children’s dad & probably some form of support too.

has anyone been through this? I’m so worried

If you can provide evidence of your self employed income for over 3 years then you do stand a chance.

I got my self employed mortgage on £9000 a year self employed income (a year after mat leave) but I was getting it jointly with someone else and we had a low LTV/high deposit. I didn't think my £9k would make a difference but it upped our affordability. Mainly they will look at affordability, same as for any employed person. Lots of mortgage companies will lend to self-employed people these days.

Can you apply for any benefits on such a low wage? Check the benefits calculator. I was in a similar situation (but did have profit from sold home to use as deposit). I used a mortgage broker who only charged a fee if she actually found me a mortgage and I was accepted. She used benefits, maintenance and my salary as an income & some mortgage providers accept this.

Your mortgage affordability will be based on profit, not turnover. This is the figure after the expenses you mention in your OP.

There are mortgage lenders who will take into account child maintenance but not all, and not in all circumstances.

How much are you looking to borrow, do you have a deposit and what is your annual profit?

Thank you this is very helpful!!!!!!!

Well I’m looking to probably get around £60K in equity after fees etc. the cost of a house in my area for the basics I need would be around £130- £150k

xxx

It would probably be for a max of 4.5 times your annual income depending on expenses.

They will look at the profit, what you earn after expenses.

They didn't look at the income I got for CM which is £1200 for one DC as they said it could change at anytime. Plus my 3k income after expenses/tax. I ended up buying cash it was too much back and forth.

It really does vary. You need to speak to a mortgage advisor.