Getting a mortgage as a self-employed MIP

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
I currently work FT in an accountancy practice, but am also a self-employed MIP with a rapidly expanding client portfolio. I will soon have to make a decision about whether to quit my employment and go FT self-employed. I don't have any concerns about getting enough work, but am concerned about my chances of getting a mortgage if I am not in employment. Just wondered whether anyone has had any problems getting a mortgage as a self-employed person?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Getting a mortgage as a self-employed MIP

    Hi Paul

    I did start to look into this when I first went Self Employed.

    I was told I would have to Self Certify.

    At the time I needed to declare a minimum net profit of £25,000 to be given a mortgage and the suggestion was made to me, by the company the bank recommended, that I should declare £25,000 as my earnings even if I wasn't earning as much as this, this was the point at which I decided not to look into it any further with them.

    I was also told that the Interest rate would be higher as I had not been Self Employed for two years.

    Sue

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Getting a mortgage as a self-employed MIP

    My hubby and I have both been self employed for 10+ years now and have always had to self certify for our mortgages - as long as you have a good payment record (ie none bounced) then I don't think you get penalised with a higher % - but only some banks and b/s do self cert - I know that RBS do (ours is with them)

    Claudia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Getting a mortgage as a self-employed MIP

    It's a nightmare. I just remortgaged and had to go to great lengths to prove my income.

    I did not want to self-certify as the interest rates they charge are much higher.

    I had to produce accounts, tax comps, statements of account all confirming my level of income.

    For my clients I just sign the accountants certificate and it's done. For me it was a lot of work and every other week my mortgage adviser kept asking me 'Do I not have an accountant?' er..... d'oh!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Getting a mortgage as a self-employed MIP

    Dean

    That is why we are accountants and they are mortgage advisors :lol:

    I know which I would prefer to be doing!

    Claudia

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Getting a mortgage as a self-employed MIP

    My husband and I are both self-employed and never had any problems. Just have to explain that I am the accountant, but it has never caused any problems. My advice is - if they are being awkward, choose a different company!

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