self employed and mortgages

i am with the principality and a long way from wales so they do lend outside of wales
always been good to deal with as well
 
They may want to see annual tax statements from HMRC as evidence of income and associate such to each complete year of trading, so it is worth noting when you can get these against when you are applying for the mortgage.
 
Joe, my day job is mortgage litigation. You will likely find it a painful process of rejection but there are mortgages out there. Nowadays lenders want your blood when you are self employed. They also want assurances that you will be on capital & interest. There isn't many interest only mortgages going around because of the mess they have caused the industry and economy. It's glorified renting anyway.

Gone are the days of self certing your self employed income and getting a mortgage on interest only to keep the payments low. We have a lot of people who have messed up and spoilt that for the honest.

Speak to a sound independent financial advisor and be prepared for some leg work.
 
Something else to add for everyones benefit.

Things are totally different to how they were 5 years ago. Back then you could get larger multiples of salaries and even missing payments or having CCJs meant you could all get a mortgage.

Consumers borrowed too much and the market collapsed. But as long as they were paying off the equity or capital then it should balance out but many were not and just paying the interest. That meant if they went belly up and were repossessed there was a shortfall which most likely the lenders have to absorb. They then makes less money and we have a crisis brewing.

There is a common perception that the banks are tight fisted. Well yes and so they should be. They have lost a lot. This is both their fault but don't forget the borrowers went asking and in many cases exaggerating what they could afford.

Then there is the borrowers who remortgage because of equity and no change in circumstance. Inevitably they fall on hard times and fall behind.

The courts system gives people chance after chance and often the chances drag on too long and they are in negative equity because they are simply not paying enough.

Repo houses are sold cheap as a very last resort, it's an urban myth.

As a country we have had many people believe in the get rich quick culture through property. It has messed us up and our kids will still feel the burden of this. We need to change our culture on money.

Best of luck Joe and anyone else.
 
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Personal experience says you'll likely have great difficulty getting a mortgage with only 1 year of accounts. not impossible though, but probably exponentially harder than having three years. They turned me down with a 50% deposit back in 2009.

That was at the height of the crash, though.
 
gman said:
They may want to see annual tax statements from HMRC as evidence of income and associate such to each complete year of trading, so it is worth noting when you can get these against when you are applying for the mortgage.
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When do they send these out?

freefall said:
Joe, my day job is mortgage litigation. You will likely find it a painful process of rejection but there are mortgages out there. Nowadays lenders want your blood when you are self employed. They also want assurances that you will be on capital & interest. There isn't many interest only mortgages going around because of the mess they have caused the industry and economy. It's glorified renting anyway.

Gone are the days of self certing your self employed income and getting a mortgage on interest only to keep the payments low. We have a lot of people who have messed up and spoilt that for the honest.

Speak to a sound independent financial advisor and be prepared for some leg work.
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cheers. Yes I won't be looking at interest only mortgage.
 
Joe
The worst thing you can do is ask for 'Gin and Tonic advice' on a forum for something like this, similarly for investment advice. Go and see a professional advisor/ broker who knows the market and the options open to you.
 
Overexposed said:
Joe
The worst thing you can do is ask for 'Gin and Tonic advice' on a forum for something like this, similarly for investment advice. Go and see a professional advisor/ broker who knows the market and the options open to you.
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lol

well this is merely just painting a picture for me, i was after experiences of people in the same situation right now. I don't have my ducks in a row to look for the mortgages yet till october so its just curiosity at the moment. When the time comes I fully intend on seeking professional advice
 
Yeah once you have filed your accounts you need to phone them to send it out. God knows why you can not print it off online.
 
From my own experience I've found lenders don't accept print outs from your online tax submission, even with verification/submission codes etc. Probably because HMRC could still make changes to your computations after submission and therefore the only real proof is to get it from HMRC direct. So as Robert says you need to ask for them to send the SA302 but it's just a phone call so easy stuff. :)


EDIT: Personally, the best people I reckon you can speak with about your mortage is the people you are wanting to get the mortgage from. Only they can really tell you what they require and then you can consider who you may need to speak with next.
 
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gman said:
From my own experience I've found lenders don't accept print outs from your online tax submission, even with verification/submission codes etc. Probably because HMRC could still make changes to your computations after submission and therefore the only real proof is to get it from HMRC direct. So as Robert says you need to ask for them to send the SA302 but it's just a phone call so easy stuff. :)


EDIT: Personally, the best people I reckon you can speak with about your mortage is the people you are wanting to get the mortgage from. Only they can really tell you what they require and then you can consider who you may need to speak with next.
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Yes. I intend to once the time comes round in October.

On speaking to my sister about it last night she doesn't think I'll have a problem and she works for Britannia in the mortgages department. Worse case scenario is that I stick with current lender for 2 years on a new mortgage then look for new deals
 
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