Why isn't someone providing mortgages to successful traders

Strugglingtrader

Active member
147 9
Hello everyone.
Struggling trader here, still struggling. I've now had 90 straight profitable trading days with one bad day that still has me vomiting.

Anyways, any ideas on how I could get a mortgage I can show £500-1k a day and will probably lift that to £2-5k over and after the summer.

I can deposit 25-40%, but can't seem to find someone who is prepared to offer a trader/spread better a mortgage.

Any guidance would be appreciated and I could also pay if anyone can help sort this headache out.

Cheers.
Strugglingtrader
 

counter_violent

Legendary member
9,540 2,416
Hello everyone.
Struggling trader here, still struggling. I've now had 90 straight profitable trading days with one bad day that still has me vomiting.

Anyways, any ideas on how I could get a mortgage I can show £500-1k a day and will probably lift that to £2-5k over and after the summer.

I can deposit 25-40%, but can't seem to find someone who is prepared to offer a trader/spread better a mortgage.

Any guidance would be appreciated and I could also pay if anyone can help sort this headache out.

Cheers.
Strugglingtrader
If you can make 500 to 1k a day, then you don't need a mortgage. Just think about this. If you do a full 12 months at those gains, you can outright purchase a modest 250k property.
 

Forexmospherian

Legendary member
39,928 3,299
Hello everyone.
Struggling trader here, still struggling. I've now had 90 straight profitable trading days with one bad day that still has me vomiting.

Anyways, any ideas on how I could get a mortgage I can show £500-1k a day and will probably lift that to £2-5k over and after the summer.

I can deposit 25-40%, but can't seem to find someone who is prepared to offer a trader/spread better a mortgage.

Any guidance would be appreciated and I could also pay if anyone can help sort this headache out.

Cheers.
Strugglingtrader
Hi ST

I know in the old days - ie pre 2007 /8 and the recession - you could get self certified mortgages with a 20% + deposit with just one year of accounts - that's if they were good. If you had 3 yrs plus - signed off by an accountant - even better.

From what I gather nowadays - its a different ballgame and you might need 2 years plus of certified results showing good profits backed up by Bank accounts.

Forget the Banks - they are normally a waste of time - you need a specialist fund dealing more with self employed people - might cost you slightly more - although it gets cheaper the larger % you can stump up yourself .

Just 3 months or 6 months history will not be enough nowadays - and being in such a risky occupation - lenders will want to see consistency - ie majority of the time winning days - and then not the odd day or week - when you wipe off the last weeks profits.

Nothing is guaranteed in life - you can have a great job - fully employed with a company for 10 years plus etc - and then 3 months after you get a mortgage - the company goes bust and you made redundant. Ideally your partner need to be in a regular employed work - that will help

GL


Regards


F
 

alexaherself

Established member
560 149
If you live in the UK, you'll fairly easily be able to get a buy-to-let mortgage without certified proof of income, through a mortgage broker who specialises in buy-to-let. For about £40 you can buy a ready-made limited company with nominee directors (just google "limited company formation agents UK" to find a list of London accountants offering this service), which can be the "tenant". You'll need a deposit of 25-30% of the purchase price, and the proposed monthly rent will need to be about 125% of the monthly mortgage repayment, with an independent "potential rental valuation" to verify that. The rest should be relatively plain sailing and you'll own the property, perfectly legally, in your own name, and can live in it effectively as your own tenant. Many people with good incomes (which they're unable, for whatever reason, acceptably/conventionally to document) have successfully done this. Good luck.
 
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tar

Legendary member
10,441 1,309
Hello everyone.
Struggling trader here, still struggling. I've now had 90 straight profitable trading days with one bad day that still has me vomiting.

Anyways, any ideas on how I could get a mortgage I can show £500-1k a day and will probably lift that to £2-5k over and after the summer.

I can deposit 25-40%, but can't seem to find someone who is prepared to offer a trader/spread better a mortgage.

Any guidance would be appreciated and I could also pay if anyone can help sort this headache out.

Cheers.
Strugglingtrader
How are they going to determine if a trader is successful or not ? Making 1K a day doesn't mean you are successful , it just means you are currently making money but the future is another story . Maybe you are averaging down - playing martingale - or maybe you are a buy and hold guy and you are currently just enjoying the bull market . Are they for example going to look at statements and say hey this guy uses a SL lets give him mortgage ?!
 

alexaherself

Established member
560 149
How are they going to determine if a trader is successful or not ?
They don't need to, if you do it as described just above. They don't even need to know that you're a trader, because your occupation isn't really relevant to them. Security of rental income is their primary concern.
 

tar

Legendary member
10,441 1,309
They don't need to, if you do it as described just above. They don't even need to know that you're a trader, because your occupation isn't really relevant to them. Security of rental income is their primary concern.
Yes i understand , just replying to the "mortgage for successful traders" issue ...
 
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tar

Legendary member
10,441 1,309
Just noticed , you're a struggling trader and you make 1k daily !
 

Strugglingtrader

Active member
147 9
If you can make 500 to 1k a day, then you don't need a mortgage. Just think about this. If you do a full 12 months at those gains, you can outright purchase a modest 250k property.

Many thanks for your reply, in my neck of the woods unfortunately that won't get you anything. I can move away from friends and family but what would be the point of that.
 

Strugglingtrader

Active member
147 9
If you live in the UK, you'll fairly easily be able to get a buy-to-let mortgage without certified proof of income, through a mortgage broker who specialises in buy-to-let. For about £40 you can buy a ready-made limited company with nominee directors (just google "limited company formation agents UK" to find a list of London accountants offering this service), which can be the "tenant". You'll need a deposit of 25-30% of the purchase price, and the proposed monthly rent will need to be about 125% of the monthly mortgage repayment, with an independent "potential rental valuation" to verify that. The rest should be relatively plain sailing and you'll own the property, perfectly legally, in your own name, and can live in it effectively as your own tenant. Many people with good incomes (which they're unable, for whatever reason, acceptably/conventionally to document) have successfully done this. Good luck.

Many thanks for replying.
Unfortunately, you can't live in your buy to let property. I rather stay on the straight and narrow, have a difficult enough career without additional worries.
 

Strugglingtrader

Active member
147 9
Just noticed , you're a struggling trader and you make 1k daily !
Thanks Tar, I'm struggling because the guys I used to trade with used to clock $1m a month. I am struggling to reach that target, at 500-1k it is just a living, but to be a successful trader versus a struggling trader I think you need to be operating at $1m a month. Which I have seen being done consistently by a 19 year old kid believe it or not.
 

tar

Legendary member
10,441 1,309
Thanks Tar, I'm struggling because the guys I used to trade with used to clock $1m a month. I am struggling to reach that target, at 500-1k it is just a living, but to be a successful trader versus a struggling trader I think you need to be operating at $1m a month. Which I have seen being done consistently by a 19 year old kid believe it or not.
Thats half the story .. how big his account whats his max dd what he trades ... etc . And if he is 19 then he wasnt trading long which brings us to consistency issues ...
 

Strugglingtrader

Active member
147 9
Thats half the story .. how big his account whats his max dd what he trades ... etc . And if he is 19 then he wasnt trading long which brings us to consistency issues ...
Slightly going off tangent here, but he was 19 when he joined the firm and did this at the prop firm for at least 3 years and two infront of me.

Not sure what the other half is other than he really lived it up and had a breakdown.

Anyways, it can be done, I'm just struggling not to blow up, but aiming high.
Take care.
ST
 

Strugglingtrader

Active member
147 9
Hi ST

I know in the old days - ie pre 2007 /8 and the recession - you could get self certified mortgages with a 20% + deposit with just one year of accounts - that's if they were good. If you had 3 yrs plus - signed off by an accountant - even better.

From what I gather nowadays - its a different ballgame and you might need 2 years plus of certified results showing good profits backed up by Bank accounts.

Forget the Banks - they are normally a waste of time - you need a specialist fund dealing more with self employed people - might cost you slightly more - although it gets cheaper the larger % you can stump up yourself .

Just 3 months or 6 months history will not be enough nowadays - and being in such a risky occupation - lenders will want to see consistency - ie majority of the time winning days - and then not the odd day or week - when you wipe off the last weeks profits.

Nothing is guaranteed in life - you can have a great job - fully employed with a company for 10 years plus etc - and then 3 months after you get a mortgage - the company goes bust and you made redundant. Ideally your partner need to be in a regular employed work - that will help

GL


Regards


F

Many thanks again F for replying.
Any specialist Fund you can recommend I can get in touch with, although I agree with you, my track record is way too short and tomorrow could always be the day of humility.