How to get self-employment earnings to count in mortgage calculation?

My partner and I want to buy a property in London. In fact we can only afford it if we combine incomes. I have been in full time employment for nearly 3 and a half year and have a healthy salary, however my partner has spent the past 6 months working for herself and on this basis earns more than I do and has the potential to increase this significantly. The problem is that we have been told that this will be severely detrimental to us obtaining a mortgage where both our current earnings are taken into account. How can we get a mortgage based on our joint earnings without my partner having to resort to becoming an employee?

How to get self-employment earnings to count in mortgage calculation?
It depends on the lender, sometimes they will only consider self employed with more than two year's accounts. If you self certify, it may be possible to get more anyway, but the payments may be a little more. Technically even with a self certification mortgage you should still only claim your real income, although alot of people inflate the income a bit.





Don't forget that there are also alot of lenders now who work on affordability rather than income multiples and this can really increse the amount that they are prepared to lend.





Let me know if you need any more help.
Reply:What about a self-certification mortgage? I don't know whether you have to be employed to have one of those. Ask a different financial advisor about this as it could be your way forward.
Reply:I'm not sure about London laws, but in the U.S., the biggest problem with self-employment is the writ-offs at the end of the year. Most self employeed people try to use as many deductions as possible, which usually decreases their stated income too much. Because she only did this for 6 months, you just need to shop around and find a lender that does International loans, and accept 6 month work history. Good Luck!
Reply:Apply online at www.surefirefinance.co.uk they can certainly help with self employed mortgages
Reply:All mortgage providers ask to see 3 YEARS worth of accounts from a self employed person.





A friend of mine and her husband are both self-employed. They BOTH had to provided accounts going back 3 years when they applied for a mortgage.
Reply:we have a mortgage and my husband is self employed, so its very easy. Go on past earnings, or what projected earnings will be. Go to a motgage advisor, we were not able to get a high street mortgage, as we have slightly stretched ourselves, but we can change to one in 18 months nows (was 2 years) as long as we keep to the payments.
Reply:Generally you need two years of self employment. It also depends on what is being written off from the revenue. If you are not reporting sizable net income ( enough to cover your expenses and leave some free cash flow after showing a profit) you are pretty screwed. And how can your partner show earnings with only 6 months of SE? At best you could only prove revenue but not earnings until tax rtns are filed.

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