A difficult one but it is it impossible?

themotorpromoter

Due to my excesses in motorsport and a rather unfortunate crash that left me in a precarious position financially, I decided to put my house up for sale to use the equity to pay off most but not all of the debt. The house has sold quickly but has now left me in a situation. Due to me changing jobs 12 months ago I am now self employed. Although my company has been running for 4 years it always ran the rally team so has never made any money on paper. Its only the last 12 months that I have concentrated on it making me a living, although officially this last year it has lost a small amount. Now I have had a lot of debt but always paid it and have a good credit history. With the house money I will be clearing nearly £750 a month of repayements on debts + the interest only mortgage of £700 a month on the current house. I wanted to buy a new place of a not inconsiderable amount of around £250000, but obviously have the problem of the fact I can't prove my earnings at the moment. I also would rather not have to put any deposit down on the new place and would in theory be better off on my monthly out goings than I am at the moment. My current mortgage company would lend me money if I could prove my earnings but unfortuantely I can't.

Also the current house is just in my name but the new one would be in both mine and my new wifes name with her income also included.

Am I dreaming & mad or is there a way? I am open to all suggestions. At the moment I can only see moving into rented, sitting out for 12 months or so, pay off the rest of the debt and scrape together a deposit as well as my only option, but surely there must be a another way as I didn't want to sit out of the property market.

silvercar

Self certified mortgages are designed for people who have an income but can't prove it in a conventional way.

Putting the house in joint names shouldn't be a problem. In fact, provided your wife's credit rating is good, it could help as you will have two income streams.

The only snag may be in getting a 100% mortgae. Your options would be wider if you could rustle up a deposit.

I would suggest seeing a mortgage broker, who would know where to get the best deal for you.

HelpWhereIcan

Unfortunately, there are no self certified 100% mortgages - the risk the lender would be taking would be huge. With most lenders looking at 100%, you will need to produce proof of your income for the last 2-3 years. It will really depend on whether you mean that the business made a loss after paying you (Ltd Co) or if you mean that the business's net profit was nil (sole trader). If this is the case, you may be stuck.

Even with a deposit, a self cert mortgage will allow you to declare all your income from all sources, but will not allow you to declare income you do not have and you should think carefully before declaring an income that is not accurate. Providing you are happy with the amount of income you can declare, you may be able to self cert with a 10% deposit.

I would have a word with a whole of market adviser who can look at all of your options and advise accordingly.

Hope this helps