Self employed and struggling to get a mortgage

[Rachul123]

Hello geeks,
I've been self employed for nearly 5 years now. I'm 26 and beyond ready to move out.
I went to the bank last year (lloyds) and spoke to another (yorkshire) and was basically told I had no chance. Even with a 15% deposit!
They averaged my earnings for the last 3 years, looking at everything left after expenses - including my mileage which is an extra 3500 off my 'profit'

Has anybody been in my situation? Or can offer any constructive advice?

If they still cant give me one in April I'll have to give up my business and I'm so busy, I've built up such a good client base, I really don't want to have to do that x

 

[Carlalouise]

I feel sorry for anyone trying to get on the mortgage ladder at the moment. Lenders have gone from one extreme to the other, I have clients with good jobs (paye), already a home owner, wanting to move up and proof they can more than manage a slightly bigger motgage and have been turned down, what hope does anyone self employed have!

Don't give up what you love, there's no guarantee you'll get a mortgage in full time employment, they will probably say you've not been with your employer long enough!

I'm lucky I have a house, however we want to move in the future and now being self employed I'm going to be in the same boat - stuck.

Sorry not much in the way of advice but you're not alone and on a positive note, where there's a will there's a way, you'll get there, it just might take a bit longer. Xx

 

[Rachul123]

Thanks for replying Carlalouise.

I'm going to stick at it aslong as I can. Was thinking about adding additional treatments inbetween colours etc to boost my income.
But its just finding (and funding) the right courses.

And yes you're right I'm not guaranteed one if I'm employed am I! They really should try make it abit easier or give us more options.

I hope because you already have a house you find it easier when you choose to move. Xx

 

[MrsBB2013]

I am just in the process of applying for a mortgage I have had one before and it was easy peasy just like a loan there you go you can afford the repayments. BUT now there is NO way I would attempt to get a mortgage myself. I am still employed as I am just finishing maternity and will owe them loads if I finish but honestly you still have to jump through hoops. Best advice is go to a mortgage broker. We are using RSC, you don't pay them the lenders give them commission for introducing you. He has got us deals that we wouldn't have been offered by the banks. The lending calculators online said we couldnt get lent the amount we wanted. He came over looked at our payslips, no problem we got the money we needed x

 

[BannerPenguin]

There are specialist mortgage brokers who specialise in self employed people getting mortgages. Normally you have a high deposit (which you already have) and a higher percentage than the high street but you do what you got to do.

On UK Business Forums I know there are a few guys that used to hand around on there who offer this service.

 

[Lauren121]

Is there no first time buyer mortgages available ?

 

[krum]

Would you be doing salon work if you were employed? As the earnings of an average salon worker alone would not get you enough of a mortgage for a flat/house. It's usually 4 times your earnings they allow you to borrow.

 

[surf girl]

There are specialist mortgage brokers who specialise in self employed people getting mortgages. Normally you have a high deposit (which you already have) and a higher percentage than the high street but you do what you got to do.

On UK Business Forums I know there are a few guys that used to hand around on there who offer this service.

I've been on this site tonight, the site format is very similar to this one have u noticed? It's almost identical in some parts, did u build it? Or this one?

 

[salj]

Definitely look on Martin Lewis' money saving expert forum / site. There's loads of info on there.

But yeah it's soooo difficult to get on the lader now. My bf and I would like to buy and we've been staying with my parents to save but we're going to go into rented next year because I can't be here for years, saving up enough to get a mortgage. And we're both in full time employment! It blows.

 

[Rachul123]

Thanks for every bodies replies!
Yes I agree I think a broker is going to be the best bet. My ex got refused at the bank then managed to get one with a broker so was thinking of ringing them!

Yes I would be a first time buyer but I think all that does is offer you the opportunity to put a smaller deposit down, therefore making my payments more and even less affordable unfortunately.

No I've always said I'd never go back to a salon now. I'd do something totally different - just have no idea what!! [emoji85]

I love Martin Lewis hes great! Yep its no fun living at home is it, especially when you're in a relationship.
I feel like moving out and renting but I wouldnt be able to save and would feel I was wasting money. Hope you get sorted ! X

 

[BannerPenguin]

I've been on this site tonight, the site format is very similar to this one have u noticed? It's almost identical in some parts, did u build it? Or this one?

Can't say I have built either.
I imagine it's a pre done forum layout/system and then just slight modification to change colours etc. Reason they look similar I imagine