mortgage options: good credit rating, big deposit, no provable income for 6 months

eternaloptimist_2

Probably a dumb question as I have a feeling I know the answer already (talk to a mortgage broker) but thought I would post on here first to test the water.

I have seen a property that I am very interested in buying and would only need a mortgage of about 60K (about 28% ltv) as I have plenty of equity in my current home having paid off most of the mortgage already (30K left). I plan to sell my current home.

I have checked and have an excellent credit rating (20 years same bank, never overdrawn, had a series of mortgages and never missed a payment, same with credit cards, no debts etc), was working full time on a decent salary until sept 08 but decided to take a year out and have been studying a couple of days a week since then, doing some freelance work which has brought in a fairly small amount of money but enough to live on, pay the bills, mortgage etc. I also earn some income from a BTL property and a small amount through investments and savings. My income since I left my job has been in the region of £1500 a month gross but not really provable (no wage slips) other than looking at my bank statement to see various random chunks of money coming and going.

In the current climate is it worth me trying to get a new mortgage to buy this new property? My options appear to be:
1. approach my current lender to 'port' and increase the mortgage I currently have (which I am reluctant to do as I feel it risks opening a can of worms about the change in my circumstances even though I can easily afford the payments). I doubt I would pass the income checking criteria as I only have bank statements to show them, only wage slips from 6 months ago, no accountant (not necessary for the paultry bit of freelance work I am doing)
or
2. trying for some sort of self cert mortgage ? Is this even an option these days, is it actually necessary in my situation ? Are there other mortgage options ?
or
3. should I just shrug my shoulders, let the opportunity pass and wait until I am 'employed' again, hoping to find a similar property then ?

Apologies about being so long winded but I thought it would be useful to provide enough info for a considered response.

Robert_Sterling_3

You could postpone getting a new mortgage until you have got some evidence of employment and pay.

herbiesjp

You are indeed correct.

Talking to a whole of market adviser will be your best option.

Your situation is complicated, and will need careful analysis of the facts by the adviser before looking to discuss verbawlly with lenders to see whether they will like the scenario.

You are looking to increase your mortgage lending up to £90k though on a gross income of £1500pm = £18kpa - so looking at 5 times income

You may be able to get this agreed, but it will it be affordable? How quickly can you sell your property?

eternaloptimist_2

Thanks for your rapid responses. More or less as I thought. Any recommendations for mortgage brokers in london that would be good at dealing with this sort of situation? In the past I have been rather disappointed with brokers that seemed to just do a web search but still expect some sort of commission for their 'efforts'.

Just to clarify, my total new mortgage commitment would be 60K, not 60K plus the existing 30K mortgage, so 4 x income. price of new property 210K. affordability not an issue as I have a chunk of savings in the bank that would cover several years of mortgage payments if need be, I just dont want to use them to reduce the size of the mortgage as I like to keep some liquidity in my finances for unexpected expenses, emergencies etc. and in case I decide to turn the freelancing into an ongoing business. In addition, renting out one of the spare bedrooms in the new property is always an option - the monthly rent would more than cover the mortgage, although I dont want to get into that discussion with a lender as it just complicates the issue further. Current property is marketable/saleable as it is in north london very near the tube and realistically priced.

herbiesjp

The savinsg in the background can also be of benefit when one of the more flexible lenders looka t your scenario, for the exact reason you have stated.

Which part of N london?

eternaloptimist_2

haringey in north london

herbiesjp

Are you looking at Wood Green kind of area? Green lanes area? Or more towards the Haringey borders like Muswell Hill etc?

eternaloptimist_2

tottenham kind of area. well, south tottenham as the estate agents would have it...

herbiesjp

You have to laugh at estate agents and what they decide they want to call areas

That aside, you might have a limited number of options available - especially as you have clarified the loan amounts.

However this would need the knowledge of a broker who knows which lenders may be flexible enough to agree this for, if it is possible.

eternaloptimist_2

well thx for your advice. at least it looks like a possibility.