Clueless first time buyer - do you think we'd get a mortgage?

ch0pski

Hello MSE community... fancy giving some guidance to a clueless first time buyer?...

• Been self-employed for one year, turnover £50k, business doing well and on the up
  
• Wife is on £35k, stable long-term job
  
• Got a deposit of £50k and a family guarantor
  
• No debts and a decent credit history between us

Could we get a mortgage?

If yes, what do you reckon is the max mortgage we could expect to get between us in today's market?...

Any guidance much appreciated... telepathic goodwill coming your way :A

mydinero

ch0pski wrote: »

Hello MSE community... fancy giving some guidance to a clueless first time buyer?...

• Been self-employed for one year, turnover £50k, business doing well and on the up
  
• Wife is on £35k, stable long-term job
  
• Got a deposit of £50k and a family guarantor
  
• No debts and a decent credit history between us

Could we get a mortgage?

If yes, what do you reckon is the max mortgage we could expect to get between us in today's market?...

Any guidance much appreciated... telepathic goodwill coming your way :A

The late optimism in thinking that real estate has hit bottom is a trap. My recommendation is to rent and when the true bottom of the market arrives then buy, which accordingly may be still a few years away.

The last thing you would want is to hold a mortgage that's worth more than the value of the property. Cash is king and will be for a while. Keep your business going and save, save, save. During times of deflation you do not want any debt.

Mrs_Bumble

What sort of house prices are you looking at?

With you only being self employed one year that makes it tricky, only couple of lenders will look to lend based on one years accounts, so that would restrict you. With 2 years accounts the field widens. What is your net profits?

when you say decent credit history, is there anything there that is a little off at all? Any missed payments etc?

Will there be any existing credit committments carried forward?

Having said all the above there are some lenders that would look to lend on your wife's sole income and she could look to borrow in the region of £140K, would need good clean credit history though.

herbiesjp

Picking up on that goodwill

Also do you have any children/dependents, as that can affect your mortgage potential?

ch0pski

.... kind MSE community people for your help so far

Here's some extra info:

No children/dependents

Profits expect to be around £40k

Credit history is good but not flawless, may have been one or two missed credit card payments over last 3 years between the mrs and I

Wife has about £5k of student loan to pay, that's it - no other credit commitments

THANKS AGAIN FOR ANY HELP YOU CAN OFFER

herbiesjp

All looks fine from here

You may want to get copies of your credit files and discuss any potential problems with a whole of market adviser.

What house prices were you looking at?