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New to mortgages, please help :)

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kozlikha
kozlikha Posts: 90 Forumite
edited 22 October 2017 at 9:21PM in House buying, renting & selling
Hello all,

I am on £28k (plus regular overtime, bumping to around £32k) just started f/t employment and my wife, after uni, just started @NHS £13,200 part-time and now started doing some self-employed work (no accounts yet, just started).

We have £20k deposit and would like to buy a £225k property, part of which will be used as a clinic, developing a f/t business.

What are our options? How difficult will it be to get a mortgage at x5 salary and considering we just started f/t employment?

Thank you! :)

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  • dhokes
    dhokes Posts: 311 Forumite
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    kozlikha wrote: »
    Hello all,

    I am on £28k (plus regular overtime, bumping to around £32k) just started f/t employment and my wife, after uni, just started @NHS £13,200 part-time and now started doing some self-employed work (no accounts yet, just started).

    We have £20k deposit and would like to buy a £225k property, part of which will be used as a clinic, developing a f/t business.

    What are our options? How difficult will it be to get a mortgage at x5 salary and considering we just started f/t employment?

    Thank you! :)

    Given your circumstances e.g. some self-employed work, potentially developing a f/t business, I think your best option is to speak to a mortgage advisor. I'd recommend L&C.
  • kozlikha
    kozlikha Posts: 90 Forumite
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    How much would we have to pay upfront in fees? For instance, could we pay stamp duty after completion?
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    edited 23 October 2017 at 12:41PM
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    Since you will require a mortgage you will have to by the SDLT to your solicitor before completion. You will also have to factor in solicitors fees, surveys, potentially mortgage broker fees.

    You are not a vanilla borrower since you haven’t been in your current employement for long and you want to buy a property that’s a mix of residential and commercial use. I would also recommend you engage a mortgage broker but I’m not sure I would recommend L&C for a complex case.

    Why don’t you try reading the sticky at the top of the board - House Buying: Important Threads.
  • ACG
    ACG Posts: 23,727 Forumite
    First Anniversary Name Dropper First Post I've helped Parliament
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    Stamp duty is usually due on completion. My understanding is that you have 30 days to pay it, but most solicitors will insist it is paid on completion.

    5x income is feasible, but new jobs and running a business from home where presumably customers will be in and out throughout the day combined is probably a step too far. They will ask if any of the property will be used commercially so it would need to be declared.

    Definitely one for a broker. I am not sure if L&C would be my first choice for something like this, in life you get what you pay for and with L&C benig a call centre fee free operation...
    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.
  • kozlikha
    kozlikha Posts: 90 Forumite
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    What if we don't mention anything about self-employment? Our salaries are just cover the x5 requirement.
  • Rambosmum
    Rambosmum Posts: 2,445 Forumite
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    kozlikha wrote: »
    What if we don't mention anything about self-employment? Our salaries are just cover the x5 requirement.





    They won't take in to account the self employed or over time anyway as it isn't regular and you don't have 2 years of self employed records.


    The issue is the fact you want to turn part of your home in to a business - most mortgages prohibit that.
  • hammy1988
    hammy1988 Posts: 145 Forumite
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    My hubby earns 30K a year, I work part time and earn significantly less. We got a mortgage for a 230k house easily. We did, however, have 36K equity from our first house sale and then used HTB...

    We didn't think we would get a good mortgage, but they said our one positive was hubby was 13 years in his job, and me 5 in mine and no dependents or debt history. It can be done. Employment is key I think.

    Regardless of experience though, best to speak to an advisor :)
  • kozlikha
    kozlikha Posts: 90 Forumite
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    Mortgage broker coming tomorrow.
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