Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Mist A Bit on March 07, 2015, 12:31:25 pm
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hi something me and other half going to look into moving house which will include a large borrowing. My other half started her mortgage before i came along and now we want to move and have a joint mortgage. She`ll get about 80,000 apx when present house sold so were looking to borrow an additional 120,000
Questions are for those that have managed to get a mortgage while being self empolyed, how difficult was it and and what did you have to do to achive it.
thanks
steve
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Depends on which bank but they want to see 3 year accounts this is coz u self employed, it's a nightmare at min getting mortgage, they want to no what u spend ur money in why u spend it do u have a alchohilc drink threw the week.
Am with HSBC and they ok but are very strict, I been thinking about borrowing on my house to extend but haven't got round to it. I was very lucky I got my mortgage 12 year ago, and am on 1% above Bank of England rates so am enjoying it ATM. 👍
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Difficult times at the mo' with Mortgages & being self employed, things have changed in the last few years. Unfortunately the responsible are also suffering the effects of the irresponsible.
Might be wise, initially, to see a "whole of market" broker- a good way to let someone else do the Donkey work. You don't have to take anything they might come back to you with but it will give you a good idea of your situation within the market. An 80k deposit will weigh heavily in your favour too. ;)
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Their is a form which is generated by HMRC this will detail your profits after tax and expenses the figures on those 3yrs forms will determine how much they will borrow you on your earnings .
One year due to offsetting a large capital investment my L200 my listed profit on the form was way down low , which made my profit on that form about half of what my earnings/profit actually was .
Can't remember what the form was if you do your self assessment online or an accountant does it can be just printed off for each year .
Never had an issue getting a mortgage
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Don't they do self certified mortgages if you have a large down payment anymore?
I mean with an £80k deposit, there's no risk to the bank - if you can't make the mortgage repayments they'll repossess the house and deduct any costs from the £80k; so the risk to the bank is nil.
I would have thought.
But in Independent Financial Advisor would be the way ahead.
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I think if he's got 80k and wants another 120k, he only wants to get a 60% LTV ( loan to value ) on the new house so you should get a really good deal on this.
I would try and get a fixed rate of about 1.91% fixed for 5 years, this only available to max 60% LTV on your new home. I no that % as I have been looking, oh ye that's with hsbc
Have a look at martins money tips or money supermarket to get some figures
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thanks for the replies , my other half has organised an appointment with her mortgage adviser and to get her house valued so we should know next week what position were in.
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They go by affordability what your wages are and your bills you pay out each month plus. Minimum 3 years accounts my friend put £300000 down and needed to borrow £80,000 he got turn down by 4 different lender's he eventually got the extra money but became a nightmare, and five months of waiting for the answer
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Yes, three years income evidence is needed via an SA302 for self employed people. Additionally they will look at any loans you have. It is harder than ever to get a mortgage now and the size of your deposit is slighly irrelevant because they will only be interested in seeing that the amount you are borrowing is affordable. Beware though because they are very strict on this now.
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As already said, the new mortgage rules that came into force last year have made it a right PITA for us self employed. Everything now needs to pass affordability and credit history is more important than ever.
Your best bet would be to see a good all of market broker, they will be able to advise on which lenders would be suitable given your individual circumstances. There are a few out there that will lend on 1 years accounts but don't be expecting a very low interest rates with them.
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You will probably find that lenders will lend 5x sole income or 4 times joint. The size of the deposit is irrelevant - they are more interested in affordability.
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Pain in the arse!!!!
Just done it and hopefully will exchange and complete in the next 2 weeks!
They require 3 years SA302s and they average the 3
Also we had to clear all our store cards + reduce the lending (the Mrs not me) on them to bare minimum or close them and had to pay off all our outstanding finance as it all goes against you!!!!
Not good being self employed and trying to get a mortage 😤😤😤
Will be happy when we have moved ;D never doing it again ;D
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The size of the deposit most certainly is not irrelevant- for one it will determine what kind of rate you will end up paying, as in... the LTV thus the mortgage deal you may qualify for.
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When I got my mortgage I had to get 90% LTV, this was over 10 years ago. Being self employed now, I don't think many of us would get this much now days, I benefitted big time with interest rates dropping and got ahead of myself, also had to borrow 30k on my house in 2003 to help with marriage, was lucky house prices rocketed just after I bought 😃,
I spent the back end of last year clearing all the bills, i am hoping to borrow a little 40k in the summer to put a garage and spare room/office, on side of my house, it will prob just get converted to wardrobes if she has her way, I be lucky to get an outside tap 😂
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I took out a mortgage 3 years ago with halifax. They wanted last 2 years tax return profit figure rather than going back 3 years.
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The size of the deposit most certainly is not irrelevant- for one it will determine what kind of rate you will end up paying, as in... the LTV thus the mortgage deal you may qualify for.
You are correct. The bigger the deposit the better the rate on the whole and also the number of lenders willing to lend will widen. However the OP is more concerned about the amount he can borrow rather than the rate? That's how I read it anyway.
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I Got one 2 years ago and it was easier I believe then than it is now now they want to know spending habits on everything some of them even down to haircuts and meals out etc etc when I took it out they just took the last 2 years trading as they had risen continuously but if they had gone up and down they would average 3 years....if you put everything through books and have healthy figures 120k shouldn't be too much of a problem with that size deposit and 2 of you applying also you will get a better interest with that LTV
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When I got my mortgage years ago I used 'self certification'. It was easy.
I worked out what I thought I could afford and 'invented' a figure for my income.
Job done.
Never missed a payment.
Nowadays I don't stand any chance of getting a mortgage,
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The process is PIA we switched to a new mortgage deal last year and just for a switching to a lower rate they wanted last 3yrs earnings and wife's pay notes it seemed harder to simply switch to a new deal than getting the mortgage just over 2yrs ago .
And under affordability they would not let us reduce our term so had to make lower monthly payments despite paying a higher monthly amount for 2yrs they want to know how much you spend on most things alcohol groceries going out etc and all this with a bank we have had a mortgages and bank accounts with for over 14yrs .
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Don't they do self certified mortgages if you have a large down payment anymore?
I mean with an £80k deposit, there's no risk to the bank - if you can't make the mortgage repayments they'll repossess the house and deduct any costs from the £80k; so the risk to the bank is nil.
I would have thought.
But in Independent Financial Advisor would be the way ahead.
Same thought here. It was available from Nationwide when we took our Mortgage out with them but ultimately we weren't suitable as the house we bought was a shared equity.
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A friend of mine was refused a mortgage with £100k deposit. He is a subsea engineer for probably one of the largest oil companies in the world and earns more than £150k a year.
Banks are idiots.
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A friend of mine was refused a mortgage with £100k deposit. He is a subsea engineer for probably one of the largest oil companies in the world and earns more than £150k a year.
Banks are idiots.
He must have terrible credit history or a terrible mortgage broker, or both.
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A friend of mine was refused a mortgage with £100k deposit. He is a subsea engineer for probably one of the largest oil companies in the world and earns more than £150k a year.
Banks are idiots.
He must have terrible credit history or a terrible mortgage broker, or both.
Or he's telling fibs, is skint, and isn't earning what he says he is.
People are funny things sometimes.
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Don't they do self certified mortgages if you have a large down payment anymore?
I mean with an £80k deposit, there's no risk to the bank - if you can't make the mortgage repayments they'll repossess the house and deduct any costs from the £80k; so the risk to the bank is nil.
I would have thought.
But in Independent Financial Advisor would be the way ahead.
Same thought here. It was available from Nationwide when we took our Mortgage out with them but ultimately we weren't suitable as the house we bought was a shared equity.
Not any more. I've heard them called "Liar's Mortgages".
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Not any more. I've heard them called "Liar's Mortgages".
Our IFA called them self-certified mortgages. ???
But you could be right, I don't trust any of these financial advisers; they're all a bunch of lying gimps.
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A friend of mine was refused a mortgage with £100k deposit. He is a subsea engineer for probably one of the largest oil companies in the world and earns more than £150k a year.
Banks are idiots.
He must have terrible credit history or a terrible mortgage broker, or both.
Or he's telling fibs, is skint, and isn't earning what he says he is.
People are funny things sometimes.
He had financial issues in his early twenties. He is now 35.
The reason they refused his mortgage was because of his credit history, he has no credit history for over 10 years. Apparently not having any borrowings for long periods isn't a good thing. Especially if the credit history you do have isn't good.
What I don't get is, the bank is in a win win situation - why refuse?. The house is about 300k, he has a 100k deposit. If he pays the mortgage - he pays the mortgage. If he doesn't pay the mortgage - they repossess the house and are 100k up.
Banks are idiots.
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A friend of mine was refused a mortgage with £100k deposit. He is a subsea engineer for probably one of the largest oil companies in the world and earns more than £150k a year.
Banks are idiots.
He must have terrible credit history or a terrible mortgage broker, or both.
Or he's telling fibs, is skint, and isn't earning what he says he is.
People are funny things sometimes.
150k a year is what senior subsea engineers get paid. That is what he does.
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Not any more. I've heard them called "Liar's Mortgages".
Our IFA called them self-certified mortgages. ???
But you could be right, I don't trust any of these financial advisers; they're all a bunch of lying gimps.
I found that every time I've had to do the mortgage I've been better off dealing direct with the bank.
I used an IFA when I took out my first one. It was a 110% from northern rock in 2003, when I went into the bank after the 2 year fixed rate was over the mortgage advisor actually laughed at the deal I was on.
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Not any more. I've heard them called "Liar's Mortgages".
Our IFA called them self-certified mortgages. ???
But you could be right, I don't trust any of these financial advisers; they're all a bunch of lying gimps.
I found that every time I've had to do the mortgage I've been better off dealing direct with the bank.
I used an IFA when I took out my first one. It was a 110% from northern rock in 2003, when I went into the bank after the 2 year fixed rate was over the mortgage advisor actually laughed at the deal I was on.
I think it depends on your credit history. The big banks won't touch a poor credit rating but there are specialist sub prime lenders. Or there were. A specialist credit broker would be able to find one that fits.
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We had more issues with my wife's payslips than anything as she is carer and works various hours which have different allowances applied .
The mortgage guy at the bank could not work them out at all and this caused some hassle .
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never been so easy to get money for house , just been cleaned to buy three more buy to lets great time and some great deals to be had , never seen the rates this low befoure ,
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never been so easy to get money for house , just been cleaned to buy three more buy to lets great time and some great deals to be had , never seen the rates this low befoure ,
Good old CIU, never fails!! ;D ;D ;D
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never been so easy to get money for house , just been cleaned to buy three more buy to lets great time and some great deals to be had , never seen the rates this low befoure ,
Good old CIU, never fails!! ;D ;D ;D
She's in Cleveland where property is so cheap I could probably buy three with a month's pay. ;)
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never been so easy to get money for house , just been cleaned to buy three more buy to lets great time and some great deals to be had , never seen the rates this low befoure ,
You have been able to get loan easy, because you are doing it as Buy to Let, is a complete different bowel game.
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And you also pay a lot more to take a buy to let mortgage, as it is viewed as a business
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never been so easy to get money for house , just been cleaned to buy three more buy to lets great time and some great deals to be had , never seen the rates this low befoure ,
Good old CIU, never fails!! ;D ;D ;D
She's in Cleveland where property is so cheap I could probably buy three with a month's pay. ;)
WOW insanely cheap. I could buy 10 mid terraced compared to one here. Jesus.
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never been so easy to get money for house , just been cleaned to buy three more buy to lets great time and some great deals to be had , never seen the rates this low befoure ,
You have been able to get loan easy, because you are doing it as Buy to Let, is a complete different bowel game.
Yes it's poope.
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My business is a limited company and we moved last year. To save hassle and to speed things up we decided to stick with our current lender (Santander). After much hassle and a long time they turned us down, they said the amount I wanted was unaffordable. I ask how much they would lend us and they said they wouldn't even lend the amount we currently owed on our mortgage as it was unaffordable, I suggested that their may have been some mistake in their affordability calculations as we had been paying the unaffordable mortgage for the past 8 years.
I think the problem with big banks is they have so many applications to deal with if you are in a slightly unusual situation they can't be bothered to try and understand. The fact that my limited company year end is 30 November and my personal tax is done to the year end April 5th confused them no end. All of this dispite the fact We had all our bank accounts with them( both business and personal).In the end I went with a broker who sorted us out with a new mortgage in about 3 weeks.
To help with getting a mortgage and give yourself a wider choice I think the following might help:
Use a charted accountant .
Think twice about becoming a limited company.
If you are trading through a limited company try to have your year end inline with end of tax year to save confusion .
Take a hit on tax and raise your salary.
Use a broker they will have worked for people in your situation before and know which banks will be most understanding.
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never been so easy to get money for house , just been cleaned to buy three more buy to lets great time and some great deals to be had , never seen the rates this low befoure ,
Good old CIU, never fails!! ;D ;D ;D
She's in Cleveland where property is so cheap I could probably buy three with a month's pay. ;)
see how much you know I live in frinton -on-sea
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never been so easy to get money for house , just been cleaned to buy three more buy to lets great time and some great deals to be had , never seen the rates this low befoure ,
Good old CIU, never fails!! ;D ;D ;D
She's in Cleveland where property is so cheap I could probably buy three with a month's pay. ;)
see how much you know I live in frinton -on-sea
I found one of your properties:
http://www.rightmove.co.uk/property-for-sale/property-33871938.html
;D ;D
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funny you should post that's ive just been and bought a hut on the front, paid a bit more then that but it in and must better place right next to the golf club lol