Hello:
I was wondering is anyone faced a similar situation I was facing with my mortgage and being self employed...
Work:
I have been in full time employment from 2005
Last September I made a move to set up a LTD company and do freelance consulting which is going really well, steady income which is now bringing home more income into the household than my previous employment.
House:
I bought my home 2007 with a mortgage and now have a LTV of about 20%-25%.
Credit Record:
I run a credit report every couple of years and last time it all came up clear with no defaults or late payments so I think this is fine.
Other Factors:
The only other factor which impacts things is that I bought the house with my wife but she is a student so no other income. But we have no other debt at all, just the mortgage.
What Next:
My mortgage is coming out of its deal next month and it will switch onto the SVR rate which happens to be almost 2% higher.
I've done reading and it seems that it is very important to have 2 or 3 years of verified business accounts for self employed income to be considered by banks for a mortgage.
I've been in business for only 5 months, business is doing good and the pipeline of work is strong but I can understand that the banks may see the limited history as a risk.
Has anyone been in this situation before? Given the low LTV and good credit history would banks have an issue with the self employment based income?
Worst case I will have to put up with the SVR but we are also thinking that we may need to move as our family will be growing soon and we don't have enough space, this means LTV could be 45-50%. I can imagine this will be a bigger challenge!
As a back up I could go back into employment, it would be a shame, work longer hours for less pay but would this be my only option?
I thought I would check with MSE and then talk to banks when I next have time off.
Thanks in advance for the advice.
I was wondering is anyone faced a similar situation I was facing with my mortgage and being self employed...
Work:
I have been in full time employment from 2005
Last September I made a move to set up a LTD company and do freelance consulting which is going really well, steady income which is now bringing home more income into the household than my previous employment.
House:
I bought my home 2007 with a mortgage and now have a LTV of about 20%-25%.
Credit Record:
I run a credit report every couple of years and last time it all came up clear with no defaults or late payments so I think this is fine.
Other Factors:
The only other factor which impacts things is that I bought the house with my wife but she is a student so no other income. But we have no other debt at all, just the mortgage.
What Next:
My mortgage is coming out of its deal next month and it will switch onto the SVR rate which happens to be almost 2% higher.
I've done reading and it seems that it is very important to have 2 or 3 years of verified business accounts for self employed income to be considered by banks for a mortgage.
I've been in business for only 5 months, business is doing good and the pipeline of work is strong but I can understand that the banks may see the limited history as a risk.
Has anyone been in this situation before? Given the low LTV and good credit history would banks have an issue with the self employment based income?
Worst case I will have to put up with the SVR but we are also thinking that we may need to move as our family will be growing soon and we don't have enough space, this means LTV could be 45-50%. I can imagine this will be a bigger challenge!
As a back up I could go back into employment, it would be a shame, work longer hours for less pay but would this be my only option?
I thought I would check with MSE and then talk to banks when I next have time off.
Thanks in advance for the advice.