Posted on 19 April 2010 by leah wardle
My partner and I are first time buyers and we are looking at properties between £90,000 and £120,000. We are not sure how much deposit we will have to pay, but we are both saving at the moment and have reached £5,000. I am self employed and my partner is employed, I have been self employed for 1 and a half years and have paid a year's tax. I also receive pay slips could we get a mortgage and how much could we hope to get?
Unless you are buying under one of the Government's Homebuy affordable housing initiatives, you can expect to have to put down at least a 10% deposit. This will then open up all the main mortgage Lenders and you will be able to make a choice from a range of Fixed, Tracker and Variable rate mortgages.
The amount you are able to borrow will depend on your earned income and monthly outgoings. Lenders do have restrictions on the length of time you have been self employed and usually want to see at least a 2 year track record, with some insisting on 3 years. However, depending on your previous employment and the types of contract you have, it may be possible to treat you as employed in which case the restrictions will not apply.
Knowing which Lender to and which not to approach is the type of knowledge that a good independent mortgage broker will have and I recommend that you speak to one about your situation.
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We recommend you seek professional advice with regard to any of these topics where appropriate.