Mortgages for the self-employed...help please

[Keeley20]

hi everyone just wanting some advice really.

Me and my boyfriend are currently saving a deposit for a house. Im self employed (my salon has been open 6months) and im just covering costs etc. Things are picking up and futures looking good but what i really want to know is how hard is it to get a mortgage when your self employed?

What things do you need before you can apply? Iv been researching and it says i have to have two years tax return and proof of income. I dont have any of these...what do i do :sad: xxx

not looking to move out for another year or two but need some more info x

 

[dianejp]

Hi Keeley20
I'm afraid the norm for most lenders is 2 years accounts, showing your net profit, this is what they will base the mortgage on. There may be an exception with one lender maybe taking into account just 1 year. If your boyfriend earns enough to get a mortgage then you can still be on the mortgage but they will not take your salary into account. Getting a good rate will also depend on your credit score, you can check your credit file at experian. You will also need a minimum of 10% deposit, ideally 15% would be better. My advice, albeit boring, would be to save like mad, inspect your credit report to ensure there are no problems, doing it now will give you plenty of time to iron out any discrepancies. Lenders will base how much they are prepared to lend you on your net profit, and generally it tends to be somewhere along the lines of 4 times your (joint if applicable) salary.

Hope this helps, my husband is a financial advisor! x

 

[Keeley20]

thanks so much for your reply, really apprieciate it! i better get putting some money away lol thanks again xx