Mortgage advice needed please

Spursfan01

Hi

I could really do with an opinion from anyone with experience. My wife & I re-located last August and are renting a 4 bed detached house at a cost of £1,295 PCM. In light of dropping interest rates this is looking incredibly poor value for money for a property whose market value is c£300K. We would obviously prefer to buy but not sure if our current circumstances will permit which are as follows.

We own a property elsewhere - market value probably £160K which is rented out and we owe £110. No cash funds available really.

I bought a business in September last year (hence relocation). I have 3 years previous owners trading accounts but obviously none of my own.

My wife works for HBOS (so far job secure), only 2.5 days week - salary £15K


Would probably need to spend c£220-250K in this location.

So what do you think - can it be done or are we stuck with the astronomical rent for now!!

Many thanks

_Andy_

hi

Just to clarify - are you saying there's no deposit available?

Spursfan01

All there is to work with is the equity in other property.

_Andy_

Looking at the figures I don't think you'd be able to raise enough money from the BTL property to give you a sufficiently large deposit.

Spursfan01

I see.

If I could sell the property (I know it's not a great market) how is my self employed status likely to affect things at the moment

_Andy_

What was the previous owner's net profit for each of the last three years?

Spursfan01

Year ended July 07 - NP £50,054
Year ended July 06 - NP £49,687
Year ended July 05 - NP £80,706 (an unusal group sale included)

_Andy_

If you can manage to sell the other property there might be a case to look at.
What I'd suggest is talking to a whole of market broker who can go over your case in more detail to find something appropriate for you.

Spursfan01

OK Andy. Thanks for your advice.