How to get a mortgage when you use all deductions you're entitled to, meaning your taxable income is low even if you're able to afford a mortgage (specially when you already pay rent etc).
Great question. Most self employed people won't take the deductions. They'll not offset anything to give themselves a bigger income. Speak with an accountant. They'll be able to help.
Great video, thank you!! How about one and a half of those years being employed as well as self employed; do you need an extra 2 years now I’m fully self employed?
Glad you liked it. If I've understood the question correctly, don't worry about the employment element. It can help but providing you've 1 years accounts there'll be lenders willing to lend on that basis. Subject to affordability and your credit profile.
Thanks for this very useful video, we're self employed and are hoping to get a mortgage. We started our business just before Covid so didn't have a great start, things are picking up now though and we can't wait to get our own place.
Thank you for the very concise video! This may be a silly question - Does 1 year of account begin with the first month you're trading, or April for the financial year? Thanks!
If you're a sole trader, it'll be April to April. But if you're a Limited Company, your year end may be different. Some lenders will want to go from your Company Accounts, which may show retained profit. If you're a sole trader, then it'll be just whatever your income was between the personal tax year which is 6th April to 5th April the following year.
Dan, thank you so much for the video and advice! Can I please ask for advice: can we apply for a mortgage if we have a year of self-employment history BUT we are on a visa? (don't have indefinite leave to remain)
I will be contact you soon as I’ve only been self employed for almost a year and my credit isn’t great. But I have a very big deposit. And want to buy a investment property.
Yeah I’m struggling like mad to get a mortgage I’m a first time buyer but have a £30k deposit. I work as a doorman self employed, my credit score is not bad but for some strange reason can’t get one.
Apologies, I never saw your comment until now. A lot of comments that were 10-11 months old are now showing up as unanswered. Did you find your answer? Halifax are a good lender, Coventry as well from memory but I'd have to check that.
Hi thanks for the video, I would love some advice please. I’m a self employed artist and my partner is full time employed so we would be applying for a mortgage together. I record everything I earn for my self assessment but I don’t have a separate business account, it’s just my normal current account is this going to be a problem? And I get some cash jobs so this obviously wouldn’t be on my bank statements? I’m very confused!
Hello. Thanks for getting in touch. If you're a sole trader, it doesn't matter so much about the business bank statements but had you been employed by your Limited Company then it would. In any case, you should get yourself an accountant as most lenders prefer this. With cash, it doesn't need to be in your bank if it's a small % but of the majority of your business is cash in hand, you'll need put it in your account. Just make sure you declare all your income to HMRC and then the cash in hand work will count towards your mortgage.
I have applied for first time buyer mortgage and I have been declined from 2 different lenders; I was also buying a share ownership property. 40k deposit, no debit, no credit cards, no loans , perfect credit score. My tax years where like 45k,43k and 25k due to covid, they said they wanted to give me money because last year was low the max that I could get I think was around 33k 😅 my next tax return will be higher than all my previous years do you think they will still count the 25k when I will try to apply again for a mortgage next year
Thanks for the question. Some lenders look at latest, some are going to average your last 2 years. Just check their criteria at the time you apply as the market is constantly changing :)
Hi, I’m a director to my business and I’ve been trading for over 2 years. My first year my account was in losses but my second year I’m in profits and have dividends payments. How is this going to defer? As I’m trying to secure a £50k mortgage for investing
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Hi there thanks for the video, just wondering if my dream is doable, I earn 45k a year, self employed but for a company that provide work everyday of the week, not Sure if that’s CIS? Good credit File, no loans or debts, have been with the same Company for 7 years earning 45k for a least the past 3 years, and have a 40k Deposit and looking At 380k to 400k Homes, also my Partner who Is employed earns 22k, if you could get back To Me That would be great thanks
Hello. Using the figures you've provided, it's not impossible but it's certainly going to be stretched. You are highly unlikely to qualify with the majority of the market, so you'll need to seek professional advice.
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⚡ Question: Have you tried finding a Self Employed mortgage yourself? How did you get on?
How to get a mortgage when you use all deductions you're entitled to, meaning your taxable income is low even if you're able to afford a mortgage (specially when you already pay rent etc).
Great question.
Most self employed people won't take the deductions. They'll not offset anything to give themselves a bigger income. Speak with an accountant. They'll be able to help.
Great video, thank you!! How about one and a half of those years being employed as well as self employed; do you need an extra 2 years now I’m fully self employed?
Glad you liked it. If I've understood the question correctly, don't worry about the employment element. It can help but providing you've 1 years accounts there'll be lenders willing to lend on that basis. Subject to affordability and your credit profile.
Thanks for this very useful video, we're self employed and are hoping to get a mortgage. We started our business just before Covid so didn't have a great start, things are picking up now though and we can't wait to get our own place.
Please keep in touch and let me know how you get on ☺️
Thank you for the very concise video! This may be a silly question - Does 1 year of account begin with the first month you're trading, or April for the financial year? Thanks!
If you're a sole trader, it'll be April to April.
But if you're a Limited Company, your year end may be different.
Some lenders will want to go from your Company Accounts, which may show retained profit.
If you're a sole trader, then it'll be just whatever your income was between the personal tax year which is 6th April to 5th April the following year.
@@buytolet-landlords Ah that's what I thought. Thanks for the very detailed answer!
Hi Dan, another great video. I've lived in the same house for 15 years! I'd love to know what a CeMAP qualified mortgage advisor actually is?
Great question, I'll create a video on this for you :)
@@buytolet-landlords thank you I'll look out for it😀
Dan, thank you so much for the video and advice! Can I please ask for advice: can we apply for a mortgage if we have a year of self-employment history BUT we are on a visa? (don't have indefinite leave to remain)
Hey 👋
It's possible.
Please book a slot in my diary next week and we can discuss this 😊 calendly.com/dan-csc/
@@buytolet-landlords Thanks! will book a time :)
I will be contact you soon as I’ve only been self employed for almost a year and my credit isn’t great. But I have a very big deposit. And want to buy a investment property.
Great. Ready when you are 🙂
Yeah I’m struggling like mad to get a mortgage I’m a first time buyer but have a £30k deposit. I work as a doorman self employed, my credit score is not bad but for some strange reason can’t get one.
Have you applied direct or gone through a broker?
@@buytolet-landlords direct?
And the lender is declining you but not telling you if it's due to income or your credit profile?
@@buytolet-landlords yeah sounds like it
Does anyone know of any UK banks/ building societies that accept just 1 year of accounts? Thanks in advance!
Apologies, I never saw your comment until now. A lot of comments that were 10-11 months old are now showing up as unanswered.
Did you find your answer?
Halifax are a good lender, Coventry as well from memory but I'd have to check that.
Hi thanks for the video, I would love some advice please. I’m a self employed artist and my partner is full time employed so we would be applying for a mortgage together. I record everything I earn for my self assessment but I don’t have a separate business account, it’s just my normal current account is this going to be a problem? And I get some cash jobs so this obviously wouldn’t be on my bank statements? I’m very confused!
Hello. Thanks for getting in touch.
If you're a sole trader, it doesn't matter so much about the business bank statements but had you been employed by your Limited Company then it would.
In any case, you should get yourself an accountant as most lenders prefer this.
With cash, it doesn't need to be in your bank if it's a small % but of the majority of your business is cash in hand, you'll need put it in your account.
Just make sure you declare all your income to HMRC and then the cash in hand work will count towards your mortgage.
@@buytolet-landlords Thank you for your reply much appreciated!
Anytime and good luck :)
I have applied for first time buyer mortgage and I have been declined from 2 different lenders;
I was also buying a share ownership property.
40k deposit, no debit, no credit cards, no loans , perfect credit score.
My tax years where like 45k,43k and 25k due to covid, they said they wanted to give me money because last year was low the max that I could get I think was around 33k 😅 my next tax return will be higher than all my previous years do you think they will still count the 25k when I will try to apply again for a mortgage next year
Thanks for the question. Some lenders look at latest, some are going to average your last 2 years. Just check their criteria at the time you apply as the market is constantly changing :)
Who is the lender who goes off bank statements do they do it again now?
Are you referring to the 12 months bank statements? If so, no, that no longer is acceptable.
Thank you for your comment.
Hi, I’m a director to my business and I’ve been trading for over 2 years. My first year my account was in losses but my second year I’m in profits and have dividends payments. How is this going to defer? As I’m trying to secure a £50k mortgage for investing
Hello. Good question. There are lenders that will take the last year's accounts into consideration only. So, you'll be able to get a mortgage :)
🚨🚨🚨 30 Day FREE Credit Report: bit.ly/check-credit-report 🚨🚨🚨
Disclaimer: If you do not cancel within the first 30 days you will be charged £14.99 and I earn a £12 referral fee if you continue to pay after the 30-day free trial.
Hi there thanks for the video, just wondering if my dream is doable,
I earn 45k a year, self employed but for a company that provide work everyday of the week, not
Sure if that’s CIS?
Good credit
File, no loans or debts, have been with the same
Company for 7 years earning 45k for a least the past 3 years, and have a 40k
Deposit and looking
At 380k to 400k
Homes, also my
Partner who
Is employed earns 22k, if you could get back
To
Me
That would be great thanks
Hello. Using the figures you've provided, it's not impossible but it's certainly going to be stretched. You are highly unlikely to qualify with the majority of the market, so you'll need to seek professional advice.
🚨🚨🚨 30 Day FREE Credit Report: bit.ly/check-credit-report 🚨🚨🚨
*Disclaimer: If you do not cancel within the first 30 days you will be charged £14.99. I will receive a £12 referral fee if you utilise the 30-day free trial through my referral link.
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