How is one accessed for an mortgage?

HappySad

How is one accessed for a mortgage? How is the affordability done? Is it no longer the x3.5 income.

I am to start a business. I was told that I need to be in business for at least1 year before I am considered for a mortgage. Would my wage from the business be my income?

Hoping to purchase later this year next year.

Thanks

purch

Think of a number, and they give you 120% of it !!!!!

Whooops ............ oh no, that was 2007 !!!!!

JonnyBravo

HappySad wrote: »

Hoping to purchase later this year next year.

Best of luck with that!

Not sure they have that type of mortgage available anymore.... except to Gallifreyans.

piggeh

I'd rather I wasn't accessed for a mortgage, that sounds pretty painful!

PasturesNew

You don't say what business, but you will probably need to be in business longer than a year - with formal/accountant prepared books showing profits/income/outgoings.

You will also need at least 10% deposit. As a new business, it's likely they might want 25% or more.

You've not given us any details to go on at all really.

ad9898_3

purch wrote: »

Think of a number, and they give you 120% of it !!!!!

Whooops ............ oh no, that was 2007 !!!!!

I have experience of this, and it's so true. As for now, the bigger the deposit the more chance you have of getting the mortgage. For instance if you have say 50%, you will likely get upto 4.5x income and probably 3x joint. However in a falling market, I wouldn't take any of these offers.

Unless you have absolutely no choice, now is not the time to buy, wait until the recession is over and carry on saving. Regardless of the Halifax figures (for this month) and some rampant VI'ing in the media, house prices will in no way trend upwards in a recession.

chucky

ad9898 wrote: »

I have experience of this, and it's so true. As for now, the bigger the deposit the more chance you have of getting the mortgage. For instance if you have say 50%, you will likely get upto 4.5x income and probably 3x joint. However in a falling market, I wouldn't take any of these offers.

Unless you have absolutely no choice, now is not the time to buy, wait until the recession is over and carry on saving. Regardless of the Halifax figures (for this month) and some rampant VI'ing in the media, house prices will in no way trend upwards in a recession.

you're pretty much spot on. i've just applied for a residential (yes i am buying right now) and got an A credit score and was told i could borrow up to 3.8 joint incomes. i believe the lower the score the lower the multiple. i don't think it's a bad idea - bit sure how many lenders do it this way

Phirefly

Based on what % deposit was that, Chucky?

bubblesmoney

purch wrote: »

Think of a number, and they give you 120% of it !!!!!

Whooops ............ oh no, that was 2007 !!!!!

no its happening in 2009 as well on a much much larger scale

The more Congress examines the Bush administration's bailout plan, the hazier its outcome gets. At a Senate Banking Committee hearing Tuesday, lawmakers on both sides of the aisle complained of being rushed to pass legislation or else risk financial meltdown.
"The secretary and the administration need to know that what they have sent to us is not acceptable," says Committee Chairman Chris Dodd, D-Conn. The committee's top Republican, Alabama Sen. Richard Shelby, says he's concerned about its cost and whether it will even work.
In fact, some of the most basic details, including the $700 billion figure Treasury would use to buy up bad debt, are fuzzy.
"It's not based on any particular data point," a Treasury spokeswoman told Forbes.com Tuesday. "We just wanted to choose a really large number."

http://www.forbes.com/2008/09/23/bailout-paulson-congress-biz-beltway-cx_jz_bw_0923bailout.html
:eek:

chucky

Phirefly wrote: »

Based on what % deposit was that, Chucky?

anything under 65% - i failed to mention that, it's something else that would be included in how much they would lend you. I guess the higher the LTV the less the multiple of salaries.

HappySad

I already have a home with 90% equity so that would be re-mortgages to make up the deposit. I believe that I can make upto 50% deposit (on the new house)from remortgage this house. I will be doing graphic design for medium to small companies. I already know an accountant & intend to register as a Limited company.

chucky what information did you have to give for your application.