mortgage enquiry

langylangy

hi all, ok i am self employed with no proof of accounts as only just started, my girlfriend will be starting full time work in 4 weeks after finishing college and will be earning £14k pa, i live with her at the moment on her council flat, we are after borrowing roughly £100k and we are looking to buy in 3-4 months and have 5k deposit.
i also own a flat which i rent out which has 20-25k equity in it.
?
what do u reckon??? best options

p.s we both have fairly crap credit ratings

MortgageMamma

Hi there

Dependent on your credit rating you may well be required to pay a larger deposit than 5% on your purchase. One option could be to sell the flat to provide a larger deposit? If you are intent on renting the flat do you have permission from your current mortgage lender to do so? or do you have a specific buy to let mortgage?

You have not stated what your earnings are? Have you any savings to pay your legal costs? Who is your current mortgage with?

langylangy

actually i dont have permission to rent it out i never knew i needed to!
my mortgage is with southern pacific mortgage limited, i earn 18k p.a roughly she will be 14k p.a and we have the legal fees seperate.

herbiesjp

Difficult to say without knowing your circumstances, but you could convert your current mortgage to a BTL - otherwise lenders will make a deduction for this mortgage commitment from your incomes (along with any other debts you may have)

Get a copy of your creit files to see exactly what is on there, and then show to a whole of market adviser, and they will be able to steer you in the right direction.

langylangy

ok will do thanks for the info:beer:

langylangy

1 more thing, if we saved for a couple moremonths and got a 15% deposit , will me being self employed with no accounts make no difference?
i spoke to a guy on the phone from a tv advert (think it was aps) and he told me if i have 15% deposit they wont care if i am a tramp, and he actually said that i would be GUARENTEED a mortgage with 15% is this true???

thanks in advance

herbiesjp

langylangy wrote:

1 more thing, if we saved for a couple moremonths and got a 15% deposit , will me being self employed with no accounts make no difference?
i spoke to a guy on the phone from a tv advert (think it was aps) and he told me if i have 15% deposit they wont care if i am a tramp, and he actually said that i would be GUARENTEED a mortgage with 15% is this true???

thanks in advance

Please do not listen to comments like this.

They are totally irresponsible - lenders having guidelines and regulations to follow. They have to treat customers fairly and be shown to be ledning responsibly.

Based on that comment would you want to go with a company like that?

Think long and hard about what you want to do, and then have a word with a whole of market adviser who will show you what you need to do in a professional manner.

langylangy

ok, yes i agree it was a bit unproffessional and i bet the interest rates are very high, but i think the bestoption is to get the 15% anyway then it will be a lot easier to get a mortgage lpus the payments will be lower.