You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more
Is this possible? What do they go on for be your best income as it is likely to dive for a while. Would be a low loan to value ratio. If it is possible what kind of interest penalty are we talking about?
We are looking to move and I am trying to hold on at work but considering we have not found a place yet and how slow the house selling process is in the UK and the time of year it could be 4-6 months before we move. This job is making me I'll and I am struggling to keep going.
You probably won't get one without at least one years net profits. There might be some lenders who do self cert but I doubt it. Best advice is to enquire with a mortgage broker who can look at whole of market
you need a good broker, they are worth the few hundred pounds they cost.
i’m self employed and it was struggle despite a 30% deposit and a repayment to income level at around 20%
having a dip in one year (when you pay all the costs of a big invoice in one year and get paid in the next financial year) puts the freighters on them because you don't fit into a simple spreadsheet for employed people.
i actually moved banks because while they were quite happy to pay me next to nothing interest on £60k of savings and lend that out to people with 5% deposits and a median salary to buy their own properties they didn’t think i was suitable to lend to.
i still got a reasonable deal and wasn’t penalised on the rate but they did drop 6k on the lending amount 2 days before completion for no reason whatsoever (it didn’t put me in a different LTV bracket) money i had put aside to make sure i had enough income to cover living for 6 months if things went titsup with the economy, you know like financially prudent people do instead of living on credit. 👿
I looked in to this briefly and there are specialist providers for exactly this type of scenario but I'd imagine that the more history of earnings you can provide the easier life is. No idea on the penalty but it should be possible. Worth pursuing and hopefully someone here will be more help! 🙂
Sounds like worth trying to speak with a specialist...
I can see the first few years being lean because of start up cost for machinery, etc thus effecting income
I looked into it recently - self employed 8 years, but now Ltd Company director.
It was a bit of a nightmare the demands they wanted, but I did get an offer in principle. They want as many years audited books as available, tax returns, tax certs, bank statements and a full three years books from whatever form my business was at, either ST, or Ltd.
Like I say, a broker got me an offer, yet Nat West, who I've banked with for a gazillion years and can see all my dealings without asking for them told me to get lost
I've had two "contractor" mortgages through https://www.contractorfinancials.com/
They know how to put a proposal to the right people so that you will get the best chance of being accepted.
That said, the information requirements ramped up considerably from the first one (just a contract with a day rate specified and bank statements) to the second (3 years audited accounts, personal bank statements etc etc).
That might have been the changes in the law though.
I went through this about 6/8 years ago so things may have moved on however I tried a broker who couldn't find a provider based on me being newly self-employed - most wanted a minimum of 2 years worth of accounts.
My advice would be to try to hang on at your job, find the house and sort the mortgage offer ASAP and quit immediately, I think I got my offer based on my last payslip having already left employment...
OP, without a history of self employment you will be an unknown risk so it will be hard to find someone willing to provide a mortgage. A mortgage provider may help and you can enquire for nothing.
MrSmith - Member
you need a good broker, they are worth the few hundred pounds they cost.i’m self employed and it was struggle despite a 30% deposit and a repayment to income level at around 20%
having a dip in one year (when you pay all the costs of a big invoice in one year and get paid in the next financial year) puts the freighters on them because you don't fit into a simple spreadsheet for employed people.
This is when you need an accountant as it should have been treated correctly as work in progress and carried forward to the following accounting period
I used these guys earlier in the year and they were great
https://apply.dealdirectfinancial.co.uk
I have been self employed/contracting for 6 years though.