Hi, ive been offered a new job but it means going self employed,is it harder to get a mortgage then?

Question

im looking to save with the missus to get a house but dont wana ruin my chances of getting a house,the job will mean more money so i wana work out my pros n cons!

Answer 1

If you have been offered a new job, but it would mean being self employed then you sat down with yourself, and offered you a new job.  That makes no sense so perhaps you should reword the question.  Being offered a new job means someone external to your family wants you to come work for them.  Teh self employed individual will ahve problems getting a house loan until they have been established for a while.  The banks will shy away from offering them a loan to get a new house until they have been in busniess at least 18 months and preferably longer.  I hope you are not looking to buy a new house right away.  With the recent credit issues, and bank lending issues the rules for lending have been tightened up considerably.  They will not touch that unless you have a good amount of money put away already and another steady source of income coming in aside from the new self emplyed job.

Answer 2

Yup, once you go self-employed from a W-2 employee, you'll have to have 2  years of documented income before a mortgage company will consider you.

So be very, very careful about how much you write off.

I know people that make $80K a year profit, but write off to where it shows they only make $40K a year...and guess what happens when they apply for a loan?  

The banks use the $40K as income b/c that is all that they can prove..

Answer 3

The problem with being self employed is that you have to register this with the Inland Revenue, pay your own stamp by DD, have no sick pay, very little rights, etc. If you stop being self employed you cannot claim unemployment benefit, you will have to employed by someone else for 2 years before you can get the dole. As for mortgages loans etc the companies usually want 3 years of trading accounts before you are considered. Why not talk to a mortgage advisor before you make a decision.

Answer 4

YES but  I still advise you to make the most money.

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