Self-employed and have a mortgage?

[LuckyC]

how the hell did you get it? DH and I are trying to get a mortgage and have a yes in principle from our bank (HSBC) but the man we met was fairly explicit that I have no chance of actually getting a mortage. One adviser suggested I get any possible full-time job even earning a pittance, as preferable to staying self-employed.

(Considering rate of redundancy at the moment this is SO STUPID.)

I have been self-employed for 1 year 6 months; have one and a half sets of accounts and plenty of proof of future earnings (like letters saying 'we are going to employ her for the foreseeable future' etc etc.)

Anyone have any advice? Don't want to give up hard-won self-employed life. Thanks.

PS we are first-time buyers.

Hi I've been selfemployed forever, we selfcerted for mortgage, but spoke to my advisor only last week as I was thinking of buying another property to run a business from and she told me that they don't do them anymore since the America trouble. The company we are with will still give us a mortgage though, but not sure if I can get another one as well as the one I have. So not much help I'm afraid, it seems that payslips are the way to go ATM for all lenders, don't know if this might be possible tough - is your bis LTD then technically you are an employee and you can give yourself payslips that might work.

Its a PITA really as I have an excellent credit check (had a look at my rating) seems a shame to penalise those of us who lend responsibly,perhaps someone in the finance sector may be able to offer some advice.

Have you tried going through a broker? London and Country v good (and fee free).

No really helpful advice, but have you spoken to a specialist self-employed mortgage advisor - I mean one not tied to your bank?

Try the Halifax... both myself and DP are self-employed, we had difficultly getting a mortgage from anyone else. the bloke at the Halifax basically said that he didn't care, if we couldn't pay it we'd lose the house.

We didn't get asked for any proof of earnings at all, no accounts, nada.

Maybe that was just him though and not actually company policy....

You wont get a self cert mortgage any more - they dont do them only specialist Co's and they charge an absolute fortune.

We had similar problems but we had years worth of accounts - we got ours with C & G - we bank with them so they credit scored us on that basis and a business manager ok'd the accounts.

But we did try several places and had problems

I couldn't get a high street mortgage, had to go to a broker - I am a company director which is effectively the same problem.

However this was pre credit crunch.

Thanks very much, all. There is some top advice here.

I am going to try through HSBC as well as speaking to some of the people you have advised me to try.

I am also not going to disclose that I am pregnant. Anyone know about the legalities of this?

Thanks again.

How far pregnant are you? I'd say if first couple of months where you could feasibly not be aware you are then fine. If not, I think you need to disclose it.

Really recommend talking to London and Country. They'll search the whole of market for you, and can negotiate on your behalf.

(oh and congrats )

Generally you need 2 years of accounts, although can usually get away with only 1 if you work in IT.

We did struggle to get one though, despite me being employed and dh having enough accounts (this was 8 years ago mind). We went through a broker who could only get us a terrible offer. Even the company that dh's existing mortgage was with wouldn't offer, until dh phoned them up himself and got them to look at his mortgage history (had flexible mortgage and regularly overpaid).

It helped that we only wanted to borrow about 75% of the house value.

Do you have a good deposit?

We have a self cert mortgage due to DH being self employed and also as I bought the house in my name when DH had gone back to study so we have always kept it that way. We too are with the Halifax. I didn't realise that they aren't doing them anymore - we are thinking of trying to move in next year or so. DH now has three years of accounts so maybe that will be in our favour?

What were you doing before? (If not too rude to ask). If employed, surely you can include those payslips?

Fatzak Three years of accounts will work in your favour. Maybe my mortgage adviser was just very doom and gloom. But also be aware that they take your net profit after tax + expenses into account, so if you have a clever accountant and a tiny tax bill cos of huge expenses....

adair good point; I will definitely include those payslips and one was for a short contract so adds to evidence of employability.

Thanks again for the advice.

It doesn't really bode well if you are both self employed trying to get a mortgage. I have relatives where one is a student PT/works PT and the other is self employed but not earning enough to make any profit. They want to move to 'detached' house but unless they both get a job that's going to prove they have a reliable income I can't see them getting anywhere fast tbh. I think they're now stuck in a rut.

The harsh reality is that mortgages are difficult to get for people in general, but even more difficult for those self-employed.

Good luck in your search and best to try out the suggestions already made by others.

If you have a decent deposit and a good credit history, you may well get a fast-track mortgage that requires no proof of earnings. I have been self-employed for 9 years and last mortgage was self-cert. For my new mortgage I had to show my last tax return profit and that was it. In the past, self-employed have needed 3 years of accounts, so you may need to hang on. Definitely try a broker, as they know the best companies to try in your situation.