sub-prime mortgage for first time buyer and after BR

opiumbeauty

Hi

Hoping someone can point me out into the right direction - went BR in 2005 and got discharged a year later.. Currently trying to rebuild my credit rating (have got a big overdrfat limit with Barclays Bank and also got accepted by two sub-prime credit card providers..) Anyway, to cut the sotry short I will be looking into buying my own place in late 2009 as I am saving hard at the moment. However, what are my chances of getting a mortgage and the type pf mortgage considering the following -

- am self-employed who has been trading for over a year now
- looking to buy in the range of 200000 to 210000
- earning between 34000 and 40000K per year
- 15% deposit; could probably strecth to 20%

Would self-cert be better option for me or because of BR I won't be able to get it? What would be the best route for me to take in order to secure the mortgage?

Thank you!:rolleyes:

Conrad

Self cert is an additional risk factor as lender is lending without income proof, so requesting that on top of BR makes it harder not easier.

You state your earnings, but are you aware your Accountant will come up with all sorts of 'costs' that in effect reduce your net profit (your earnings) in order to reduce your tax bill.
So when you say your earnings figure - make sure this is your net profit, not the company turn over. A company can turnover £1m, and make just £1000 pa profit. A lender would use the £1000 profit as the income figure.

Anyway, it's too early to give you any advice other that the following;

Keep stable - dont move address
Stay on the voters role
Have a home landline
Obviously never pay anything late - lenders will ALWAYS deem it your fault as you should always have plenty of funds available to mkeet the unforseen

Self cert is for those that cant proove thier real income. Whether you will go that route depends what your Accountant does.

arkie

another tip get rid of your overdraft and credit cards, if you are making enough money pay these off

Toughluck

You are earning that amount, what are you declaring to the inland revenue? ie what is the net income for you. What you turnover is a pointless figure and you may as well declare £1,000,000 is what you actually earn. Lenders will take into account your net profit so bear this in mind when you are getting your accountant to "work" for you.

Rabiddog_2

I hope your self-employed status and your board name have no connection :eek:

Toughluck

Fortunately I am "employed"!!!! for now anyway.

opiumbeauty

Hello,

Thank you for all your replies. Lots of good tips here.. And no, my board name has no connection whatsoever with my self-employment!!!!:D