Accounts

[gemma659353]

I'm just starting out but long term, in the next few years I want to buy a new house, I already have a mortgage but need to move to somewhere bigger.

With regards accounts how does it work getting a mortgage? Do they work on profit or turnover?

[rickysmiths]

We went through this 10 years ago and they needed 3 years audited accounts so I was very glad I had used an Accountant.

Also worth remembering that if you need income to support the Mortgage you will need to watch your expenses. My Accountant has always said no more than 1/3 of turn over for Expenses not the 2/3 so popularly banded around.

It served us well because we upped our mortgage quiet a lot and then 5 years ago we changed it because we had a large extension built and we changed providers again but I needed Accounts completed by an accountant.

[Simona]

I'm just starting out but long term, in the next few years I want to buy a new house, I already have a mortgage but need to move to somewhere bigger.

With regards accounts how does it work getting a mortgage? Do they work on profit or turnover?

This may be of help

https://mortgageadvisers.which.co.uk/specialist/self-employed-mortgages/

[alex__17]

Following this as we need to remortgage at the end of the year as our low fixed rate ends...I'll have tax return for the year just gone and will do this current year straight away in april so will have 2 tax returns filed and will have to hope that is sufficient. ..slightly panicking we'll go onto the v high variable, could just afford it but domt want to pay hundreds more when we're so mucj better off financially now I'm childminding yet because I'm self employed their computer will most likely say no!! Makes me so annoyed!

[gemma659353]

We went through this 10 years ago and they needed 3 years audited accounts so I was very glad I had used an Accountant. Also worth remembering that if you need income to support the Mortgage you will need to watch your expenses. My Accountant has always said no more than 1/3 of turn over for Expenses not the 2/3 so popularly banded around. It served us well because we upped our mortgage quiet a lot and then 5 years ago we changed it because we had a large extension built and we changed providers again but I needed Accounts completed by an accountant.
So would you recommend using an accountant from the beginning? I am more than capable to do it myself but want to start off on the right foot as I know in the next couple of years I'm going to need to get a new mortgage.

Have I seen some accountants offering specific services for childminders quite cheaply?

[Simona]

Gemma...have you thought of asking an Independent Financial Advisor about your mortgage?...or a re-mortgage?
They know all the deals going, their service is free as they get paid by the mortgage company if they get to arrange a deal for you.
Check this is still available but I am sure it is.

Mortgages for the self employed have been simplified...there are millions of us with them and referred to as 'small businesses'
Keep your Tax returns and all gets worked out from there...do a projection of your possible earnings in future if you sustain your business or want to expand.
An accountant produces accounts for you but has no say on who can offer you a mortgage...I personally recommend them to any cm but it is your choice.

Good luck :thumbsup:

[Chatterbox Childcare]

Following this as we need to remortgage at the end of the year as our low fixed rate ends...I'll have tax return for the year just gone and will do this current year straight away in april so will have 2 tax returns filed and will have to hope that is sufficient. ..slightly panicking we'll go onto the v high variable, could just afford it but domt want to pay hundreds more when we're so mucj better off financially now I'm childminding yet because I'm self employed their computer will most likely say no!! Makes me so annoyed!

I found that the company you are with will offer a good competative rate to change, especially if you have to pay valuation fees if you move. Booking fees with current company were £100 opposed to £900 with a new one

[alex__17]

I'm hoping our current company will do exactly that, see that we've made monthly payments with no probs while we've been with them and agree to switch us into a new lower rate they have, may not be the lowest around but better than their very high variable! I was employed when we took the mortgage, and didn't think to fix it for 5 years due to me starting as a cm as I knew we'd be financially better off without having to pay out for childcare ourselves...just didn't consider the bank may not see it that way!
Hope they can see that even though I've been self employed most of the time and never been late with a payment that we're able to afford it!