Help please

coggy_2

Hi all

Im new to this forum so hello all ;D

I am after a bit of advice regarding getting a mortgage. I started my own Ltd company a couple of months ago as a joiner.

I pay myself a small wage and want to buy our council house. The wage i pay myself is only £160 net a week.

My wife is on incapacity benefit and we want to know if any of her benefit money is taken into account when applying for a mortgage because my own wage is not quite enough.

Any advice would be great

Thanks in adavance
Coggy

coggy_2

mmmm no takers on this one then

Fran

Coggy,

I've just looked on a few websites but can't find an answer! I think (not sure) that it will be taken into account with a minority of lenders. Sorry can't help more...

coggy_2

Thank you very much Fran


Anybody else got an idea?

Coggy

Sarahsaver

There are 'self-certified' mortgages available.

I am merely pointing this fact out because i dont know if they are any good.
You can get quotes from 'the money centre' I got quotes from them when i was considering a BTL mortgage. i THINK itw https://www.themoneycentre.co.uk but pls excuse me if im wrong

DiggingOut

Unfortunately our mortgage brokers are on holiday....

Joe_Bloggs

@coggy
Is there a pressing need to buy your property that you live in?
Interest rates are going up and some think that property prices are going to slow down.
Perhaps you can can afford to establish your business a little longer rather than get turned down for a mortgage and put a spot of doubt on your credit history.
Your home would be at risk as a mortgage payer if you were unable to find the payments due to sickness or business failure. Why take the risk ?

Mortgage_Master

Hi Coggy,

Your ability to get a mortgage or not will really depend on what you were doing before you set-up your LTD:

1. If you was a self-employed joiner and set-up the LTD purely for tax reasons then it may be possible depending on your accounts.

2. However, if you've gone straight from employed to LTD then you've got a problem. Mortgage application forms ask you're a controlling director of the company you for. If so, they treat you as self-employed and will want to see a minimum of one years accounts (most lenders will want 2-3 years accounts) Once you've been trading 12 months you could ask your accountant to prepare your accounts immediately and subject to their content you may be able to get a mortgage.

With regards to the points raised re: self certification mortgages, unfortunately you're unlikely to qualify until you've been trading 12 months. Please also bare in mind that self certification mortgages are not a license to inflate your income which would be deemed as mortgage fraud. However you could include dividends taken from the business and possibly your wife's incapacity benefit (However you would need to check with the lender first).

Hope this helps.
Simon

coggy_2

Thankyou all for the help

@

coggy
Is there a pressing need to buy your property that you live in?
Interest rates are going up and some think that property prices are going to slow down.
Perhaps you can can afford to establish your business a little longer rather than get turned down for a mortgage and put a spot of doubt on your credit history.
Your home would be at risk as a mortgage payer if you were unable to find the payments due to sickness or business failure. Why take the risk ?

Its really a good investment to get on the property ladder i feel.  We can get a good discount because we have been tenants over 2 years so will get the property at a real cheap price.  My business is doing excellent and in the 3 months already i don't need to advertise and booked up until October.  I am doing a lot of work on our house at the moment so i feel the value will increase . The mortgage would not be that much more than what we are paying in rent.

Before i started my Ltd company i was on Incapacity benefit as well

More opinions welcome please, and thanks again all

Coggy

lisyloo

My own feeling in general is that the housing market is quite risky at the moment.
We have had 5 interest rate rises since November and there's probably more to come.
There are some tentative signs of a slowdown in some of the surveys but the interest rate rises take a few months to work through and the surveys are backward looking.
My own feeling is that we will see a significant slow down in the rate of growth very soon.
i.e. houses will not keep on booming.

I very much hope that we will have a gradual slow down and prices will either stagnate or grow slowly or fall slowly, however there is definitely a risk of a crash and this can happen purely on sentiment reasons rather than needing interest rates or unemployment in my opinion.
Historicak figures show that boom and bust is a more likely scenario than anything gradual as that tends to be the way the market works (fear and greed).

However if you are getting a great discount on your council house and you can afford it then the risks are much less.

I would say make sure you can afford the repayments (interest rates are expected to peak between 5.25% and 5.75% so we have some way to go yet).

coggy_2

Thanks again

However if you are getting a great discount on your council house and you can afford it then the risks are much less.

We get 32% discount on the price and with the work im doing on it with being a joiner im sure it's a safe bet to buy it.  Renting it now is just dead money.

[glow=red,2,300]If[/glow] we can get a mortgage

Thanks again
Coggy