[Mist A Bit]

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

[Matt.]

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. 👍

[ChumBucket]

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.

[Mike #1]

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

[Tom White]

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.

[Matt.]

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

[Mist A Bit]

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.

[david mark]

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

[8weekly]

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.

[deeege]

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.

[Mike55]

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.

[S.A.J]

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   never doing it again  

[ChumBucket]

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.

[Matt.]

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 😂

[mike1986]

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.

[Mike55]

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.

[Marc Whitbread]

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

[JackieW]

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,

[Mike #1]

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 .

[EandM]

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.