How can I get a mortgage if I am self employed?

I have been self employed for 18 months, in my first year I made 9k and my second is heading for about 23k, and if I continue on my current rate of contracts th end of my third year (april 09) may see me make upwards of £40k. I don't have an accountant but have tax forms to prove this income. I have about £25k on credit cards but am paying that off slowly hoping to increase payments as my income rises. I currently pay £50 a week in rent in a housing association flat which helps my debts but I dont want to stay here until I can prove my £40k income in April 09. Is there any way I can get a mortgage before this date, despite having debts and my income being on a daily rate that I can't prove is guaranteed?



Hi I'm in the Uk

Update 2:

Hi De deuce - well I guess people lend money to people because of the high interest rates - I am not expecting them to do it out of the good of their heart. Where is the money coming from? well I make £350/day, currently there is work for at least the next year, currently working at least full time with very positive feedback, I figure that's about £80k but I was being conservative in my estimate of £40k just in case my work halves. That's where it's coming from..

Update 3:

I have credit card debts as I have been living on them whilst I build up my business ove the past 18 months - it was a risk I had to take, or continue working for someone else the rest of my life. It seems to have been worth it, my work is building I hopefully won't have to work for anyone but myself ever again, and I am paying the credit cards off at about £2-£3k per month. I had no choice, I didn't have wealthy parents to back me or anything, I think it was worth the interest I have accrued. My last job paid £35k, I expect to make at least £40k per year probably a lot more in the future, that more than pays the interest on the cards and gets me out of a job I hated to one I get satisfaction from. Maybe I have to just stick it out in the cheap flat until next summer when my debts are gone..

9 Answers

  • 1 decade ago
    Best answer

    I am presuming you reside in the U.K. There are lots of companies that will allow you to self certificate (i.e. no proof of income). However, be prepared to pay a higher rate of interest. There will also be hefty penalty clauses to take into account should you decide to leave within a few years and take up a mortgage with another company. My suggestion would be to try to pay off your credit cards a.s.a.p., wait another year or so, (house prices are currently dropping and the trend is that they will possibly continue to do so.) You will be in a much better position when you can secure a mortgage with proof of income when your income improves.

    Source(s): Life's experiences.
  • 1 decade ago

    You could talk to a mortgage broker. There are companies that will lend to you, but the interest rate is likely to be too high unless you first get your finances into better shape.

    You need to pay off that credit card debt as soon as possible...the interest cost on that finance is extremely high and will be eating up your cash.

    Once that is cleared, then you would be able to approach a bank and you should find they will lend to you...if not then go to another bank !

    Dont forget, you will be doing them a favour, as they make money out of lending mortgage money to you ...good luck

    But whatever you do get rid of that Credit Card debt

  • Anonymous
    1 decade ago

    I think you need to restructure your debt, but debt in itself is not a major hindrance to getting a mortgage providing you are making the repayments. Two years with a projection on a third will be fine, but you will not get 100% and will probably need to come up with about 15 - 20%. Go and see an independent mortgage broker and tell him exactly what you want. It doesn't sound as though you are in as bad a position as you seem to think.

  • 1 decade ago

    Your asking someone ELSE to front you some money (value) and you can not offer them a visible means of paying it back. WHY would someone want to do THAT? You are essentially asking them to loan you 120,000 dollars on a "possible promise" that you will make 80,000 bucks in '09. And in addition, you are carrying 80,000 dollars in current debt. Just WHERE do you think all of this money will be coming from? If you say "on a hope and a prayer", I say the money lenders are NOT IN the hope and a prayer business.

    Get your debt paid and get some liquidity in the bank. THEN go see people about investing in you.

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  • thoms
    Lv 4
    3 years ago

    tutor your 1040s and your deposits at present. you're allowed to advance your earnings! yet for purposes of a private loan, they are greater involved in long term earnings than a rapid uptick. What is going up can flow down. So, they'll make the determination on your previous 2 years earnings statements yet may be inspired that your business enterprise is exhibiting an upward style.

  • Anonymous
    1 decade ago

    Very unlikely..... Probably have to wait for proved higher income , also save for a big deposit.. Would have thought it would be in your interest to clear the credit card bill before taking on further commitment..

  • 1 decade ago

    what country are you in? I am a mortgage loan officer and can answer your questions but I need to know where you are to give correct info.

    EDIT: I came back to see if you added your country for correct info and did not see anything, I will check back one more time.

  • Anonymous
    1 decade ago

    You'll have to ask the bank like the rest of us do.

  • Anonymous
    1 decade ago


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