Getting a mortgage whilst being newly registered self employed

[SMRX]

Hi Everyone,

I wanted some advice regarding mortgages for a newly registered self-employed person.

So I registered as self-employed with HMRC end of August 2016 (Prior to that i was employed and earned 5k between april 2016 to August 2016). In the tax year 16/17 I earned 17k (combined employed/ PLUS self-employed wage), would this count as my 1st year of accounts being self-employed? I am on track to earn 50k this year (tax year 17/18). Once i submit my account for tax year 17/18 in April. Would mortgage lenders consider that 2 years worth of accounts and if so, how much mortgage would i be able to get?

Thank you in advance

 

[Peter Bowen]

Hi.

Look for @tony84 on this forum. He got me started on getting a mortgage with only a couple of years self-employed accounts.

 

[SMRX]

Okay thank you

 

[Clearaccy]

Hi

Yes mortgage lenders generally want a few full years set of accounts.

Your two sets of accounts will be:
6th April 16 - 5th April 17
6th April 17 - 5th April 18

Have a free consultation with a mortgage advisor and they will tell you what is needed.

 

[tony84]

Not all lenders would class it as 2 years.
It is all in the wording, some lenders say 2 years trading, others say 2 years accounts - 1 word difference could mean very different outcomes.

But yes in the main most lenders would look to accept you I imagine. They would usually average out the 2 years and lend around 4 to 4.5x that figure. Although there are lenders who will work off the latest years figure only.