getting a mortgage

[likkle_angel]

hi there,

need to ask.. i want to get a mortgage, but i am "classed" as self employed, even though i am not declaring the tax and national insurance right now, only just started and having sorted that out, would i defo neeeeed to declare it to get a mortgage?

thanks!

[Uzoma]

Hello.
Declaring the tax & N.I. is not enough on it's own, per se, to show you are self employed. What really defines you as self employed, from a mortgage point of view, is your proof of income.
So, as a very general rule of thumb, if you have payslips/wageslips, then you are employed. However, if not, it's likely that you'll need to show your income by accounts from your accountant or tax assessments (which I'm assuming you don't have).
If you've 'just started' it will be difficult to get a mortgage without a large deposit (25%) otherwise proof of your income will be essential. Alternatively, a larger deposit may allow you to self certifiy your income but the interest rates tend to be higher.
All the best.

[MrBounty]

When i first tried to get my mortgage, i was told i'd need 3 years worth of proof of income (im also "self employed").

Fortunately, my excellent mortgage advisor and solicitor work together and are friends of the family, so managed to get around the scenario.

[likkle_angel]

ok, so i get wages slips, but do i neeeed to declare what i am earning in order to get a mortgage, they're not actually wage slips, but more of an invoice that shows me what i have earnt!

[Ethel]

Yes, of course you need to declare your income to get a mortgage. The lender needs to be satisfied you can afford to pay it back and have a steady income.

You will need a hefty deposit and be prepared to pay a higher rate of interest that employed people. They will probably insist you take out mortgage protection insurance of some kind too.

You must also register yourself as self employed with the Inland Revenue within 3 months, otherwise you will be fined.