Accounts self employed < 1 year

T

taz

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Myself and my husband are applying for a mortgage at the moment. I am a permanent employee and he is self employed. He has only been in business since last October so when approaching the bank and accountant what information would the bank expect to see in terms of accounts is a projection ok or do we need more detail.

Thanks
 
To be honest I don't think they will take his income into consideration at all. I could be wrong but I am also self-employed and I remember enquiring to 2 or 3 banks about 12-18 months ago and they weren't interested in talking to me, and that was just to switch my current mortgage.

I know there are some brokers/banks that will take it into consideration but you may end up paying a higher rate.

However, like I said, I'm not 100% on this, and it was a while back so things may have changed. I suppose the best answer I can give is gather all the info you can and prepare it very well and then just sit down with them and talk.

Best of luck!
 
from what you say you've only 1 month to go before you have to run off a set of accounts,so talk to your accountant tell him what your plans are,after all he does work for you even though they seem like glorified tax collectors at times (no disrespect intended).once you have the accounts you can see yourself wheather its profitable,because thats what the banks want!good luck.
yob
 
By default, banks usually demand that you need to be self-employed for 3 years and require 2 years trading accounts before considering you for a mortgage.

However it all really depends on exactly how much of a mortgage you require, and how dependent you are on your husbands income to service the mortgage.

The specific circumstances surrounding your application will determine how much you need to rely on your husbands accounts/projections etc.

Unfortunately without knowing the specifics of your requirements - its difficult to give advice.
 
On the subject of making a profit my husband started his own business last year and made enough to pay salaries and that but is carrying over a small loss. We were wondering how banks would look at this when it came to applying for a mortgage and his business bank manager said they would be surprised if there wasn't a small loss in the first year so it would not really be a black mark. Or indeed a red one.
 
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If all else fails you can go to a non-status lender such as Start Mortgages, GE Money and others - a broker should be able to give you a list of them. But these shoyuld be a last resort as they charge very high interest rates and application fees. But they don't mind if you're recently self-employed.

As soon as your husband has two or three years' accounts, re-mortgage with one of the High Street lenders to get your rate back down.
 
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