Who gives mortgage on last years earnings o#not a 3yr average?

rjbell

rjbell

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Any mortgage advisers here?

I'm looking to get a mortgage, the problem is i'm self employed. The majority of lenders look at your last 3yrs and take the average. This is no good to me because i earned £15k + £15k + £34k / 3 = £21k. I've read some providers look at 2yrs and some just one year. Anyone know where i should be looking?
 
I know ours insisted on 3, and examined them almost forensically.

Good luck!
 
This might be a situation where you need a good broker that actually has experience of arranging a lot of mortgages like this and knows how lenders work, how much real flexibility they have on their stated terms, and so on.

If you don't have any luck here, try the "finance" subforum on pistonheads, there are one or two mortgage advisers that post there regularly and if you read back through some past topics, seem to be well regarded by people that have used them (I have no connection, I arranged my own mortgage direct with the building society).
 
Its very sensible to take an average as there is no guarantee the high earnings will continue. If you have a larger deposit they'll be less fussy about multiples as they'll get their money back if they have to repossess.

Its much harder to get a mortgage as a self employed person. Another strategy is to look to borrow from institutions you already have a financial relationship with eg your current account or business account providers. They can see what you're like so may bend the rules more.

Also pay off any debts as they can affect how much you can borrow. If you have unused credit consider getting rid of some as it seems to out off the more conservative of lenders if you have lots of credit available.
 
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srichards said:
Its very sensible to take an average as there is no guarantee the high earnings will continue. If you have a larger deposit they'll be less fussy about multiples as they'll get their money back if they have to repossess.
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Yes true however mine is looking to be similar again for this year, but no job is secure any more and they make you get insurance for such situations don't they?

I have £30k deposit.
 
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rjbell said:
Yes true however mine is looking to be similar again for this year, however no job is secure any more and they make you get insurance for such situations don't they?

I have £30k deposit.
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Your deposit certainly works in your favour depending on the amount of mortgage you require.
 
Well i got a financial adviser friend to try and find me a mortgage. He's got back to me today with a mortgage in principle up to £138k. This along with my £30k deposit should get me something in the right side of town so i'm well chuffed. I might even have my first home for Christmas although this might be pushing it.

Next decision newish house with no work or a nice big Victorian one that need work.
 
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rjbell said:
Well i got a financial adviser friend to try and find me a mortgage. He's got back to me today with a mortgage in principle up to £138k. This along with my £30k deposit should get me something in the right side of town so i'm well chuffed. I might even have my first home for Christmas although this might be pushing it.

Next decision newish house with no work or a nice big Victorian one that need work.
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Result. Congrats!
 
who is the lender as i am going through the same thing at the moment also self employed
i have accounts etc for the last 2 years that cover what i need to borrow and a good credit history etc
pm me if you want
thanks
 
Yes I had 2yrs too. Im pretty sure it was natwest, ive not had the documents yet.
 
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