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Advice needed getting a mortgage?

NPowerUser
NPowerUser Posts: 409 Forumite
Mortgage-free Glee!
in Mortgages & endowments
My wife and I are in our mid 40's having paid our mortgage off 2 years ago.

We would love to move house and secure a small mortgage but my wifes income is fairly low £135 a week but verifiable whereas I am a self employed taxi driver that earns about £300 a week (net) but I have no accounts to back this up.

Looking to borrow say £25K with the potential sale proceeds fully going into the new purchase so we would be looking to borrow around 20% of the new houses value.

Is there a low cost self cert mortgage out there for say a period of 10 years with a not too bad rate of interest? What other options out there?

Help?
«1

Comments

  • Gorgeous_George
    Gorgeous_George Posts: 7,964 Forumite
    Part of the Furniture Combo Breaker
    You could probably get a bank loan to cover that. I'm not sure if a mortgage company would compete much on rates given you circumstances but I'm not a mortgage adviser. I'm sure one will be along shortly.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • koexelek
    koexelek Posts: 7,847 Forumite
    I am sure both Coventry Building Society and Bank of Scotland would snap your hand off for that type of lending.
    Both offer true self cert for the self employed
    I am a Mortgage adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    You would not need self cert - you could get a full status mortgage based on your wife's income - £25k should be ok as long as no other debts in the background and good credit history

    How long have you been self employed?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • NPowerUser
    NPowerUser Posts: 409 Forumite
    Mortgage-free Glee!
    koexelek wrote: »
    I am sure both Coventry Building Society and Bank of Scotland would snap your hand off for that type of lending.
    Both offer true self cert for the self employed

    Thanks

    In the absence of any IFA's contacting me I have got in touch with the Coventry BS.

    Appreciate your help. :T
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    NPower - as the post above, you don't need to self-cert, you should be able to do it just on your wife's income (you can still have the mortgage in joint names). This should give you a better interest rate. You may want to look into this before committing to any self-cert products.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    NPowerUser wrote: »
    Thanks

    In the absence of any IFA's contacting me I have got in touch with the Coventry BS.

    Appreciate your help. :T

    Have you asked for an IFA to get in contact?

    Personally I would shop around - go via a broker - as you do not need to go self cert as I have stated above
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker

    In the absence of any IFA's contacting me I have got in touch with the Coventry BS.

    If you mean you thought someone from here would contact you - sorry thats not how it works - brokers are not allowed to make first contact
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • koexelek
    koexelek Posts: 7,847 Forumite
    _Andy_ wrote: »
    NPower - as the post above, you don't need to self-cert, you should be able to do it just on your wife's income (you can still have the mortgage in joint names). This should give you a better interest rate. You may want to look into this before committing to any self-cert products.

    That's a good point. If the wife earns £135pm gross, that's £7020 per annum.
    Assuming there are no other financial commitments in the background, you are looking at an income multiple of 3.56 times on a loan of £25000.

    I am sure some lenders will look at that
    However, some will class Mr as a DEPENDENT of Mrs ( as he has no proveable income) which might affect the affordabity.

    Defintely worth exploring that option as well
    I am a Mortgage adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • happybroker
    happybroker Posts: 1,301 Forumite
    what do your accounts show?

    Circumstances where self cert should be used are if,for instance you have had a sudden up turn in business through obtaining new contracts that don't yet show in accounts because they are recent, income from several sources, business too new to have accounts etc, etc and any self respecting broker or lender shouldn't be accepting applications from people who don't declare their true income to HMRC.

    I assume that one of the acceptable reasons for self cert is your situation.

    Self certifying due to accounts not showing true income to avoid paying tax is not an acceptable reason and obviously it's illegal.

    Try to go own the route of using what your accounts do show in conjunction with your wifes income.
    Happily an ex mortgage broker!
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    koexelek wrote: »
    That's a good point. If the wife earns £135pm gross, that's £7020 per annum.
    Assuming there are no other financial commitments in the background, you are looking at an income multiple of 3.56 times on a loan of £25000.

    I am sure some lenders will look at that
    However, some will class Mr as a DEPENDENT of Mrs ( as he has no proveable income) which might affect the affordabity.

    Defintely worth exploring that option as well

    Now why didnt I think of that? ;) :rotfl:
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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