Will we get a mortgage?

Brighty

Hi there

A little advice needed on the likelihood of obtaining a mortgage.

I have a mortgage with my brother on the old family home, currently owe 66k on a house worth around 220k, currently being rented for 1k per month, mortgage payments are £410 per month.

Now the move up north is going to be permanent, the wife and I want to buy a house, still keeping the house down south rented out. Looking to buy for around 130k with a 25% deposit, so a mortgage of around 100k.

I am a self employed design engineer working through my own ltd company, currently working on an ongoing contract for a large, stable, global company. It’s basically like a 9-5 perm job, but they like to pay all their staff as contractors. Been there 9 months now. I only earn the weeks I work, not sick or holidays. I take home around £600 per week the weeks I work, after all my taxes are paid. My accountants can supply a reference apparently, for a small fee of course. The issue with my employment/accounts history is that between this contract and the previous one down south, last tax year, I didn’t work for 5 months, most of that my choice to spend time doing up the house down south ready for renting, then the big move up north, then a well deserved 2 month holiday to explore my new surroundings, followed by a little while of job of job hunting. So tax year 08-09 will show very little earnings.

My Experian credit report looks fine, all green zeros, the only negative I can see is that we are not on the electoral role at our current rented house we’ve been in 5 months, only the previous flat we were in 7 months. The form is in the post to get that sorted, but it will take till August to get processed apparently, plus however long it takes to show on credit reports and I wanted to get a mortgage sorted sooner than that. The other negative may be the moving, 2 moves in less than a year, don’t know if that will count against us?

My wife earns around 13k per year, I’ve not checked her credit report yet, but it should be ok, maybe a couple of late credit card payments a couple of years ago (only a day or 2 late), she has a couple of loans which she’s paying around £300 per month on. If it looks really bad I could just apply in my name I suppose.

Sorry for the length of the post, but I thought the more info I give the better.

What are your thoughts on us getting a high street mortgage? Should be ok shouldn’t it? Planning to see a broker, as soon as I identify a suitable one. The best deal I’ve seen from comparison sites is 2yr fixed from natwest at 3.64%, not investigated 5yr fixed yet.

All info much appreciated

Brighty

dimbo61

You need to see a whole of market mortgage broker and tell him/her this story
think long term are you planning on staying up north long term ( next 5 years at least)
So many other things to consider so go to the experts.
Self employed, second mortgage , gap in income last year, credit score for both of you.