Newley Self employed/Company Director - is a Guarantor mortgage an option?

cc000001

Hello everyone,

I'm the director of my own limited company so for mortgage purposes I think I'm classed as self employed. Been doing this since April and things are going well.

I currently own my own house and have done so for about 4 years. I have an excellent credit rating with no ccj's etc.

I'm looking to move but the self employed thing is an issue. Been told that I need 3 years worth of accounts but the Halifax said they'd consider 1 year.

However, I wondered if a Guarantor Mortgage with my parents (who are willing to do it) would be an option? I would be looking at spending around £100,000 and would have a deposit of around £40,000.

The thing is that my parents are both retired but have two things in their favour, they own their house 100% and this is worth around £220,000 and they have good pensions (not sure what they get but think they have final salary type pensions).

Would their pension be classed as an income for mortgage purposes? Would the fact that they own their house be relevant?

How does a guarantor mortgage work? Would I still need my accounts etc. to get one? Called the Halifax about this and they said to discuss these types of mortgages i'd need an appointment.

Any advice would be gratefully received. I really want to move but don't wan't to have to go into rented accom to do this - I'm on the ladder here and don't fancy getting off again!

cc000001

By the way, the reason I mention the Halifax is because they are my current lender.

Would my existing mortgage with them be taken into account if I was to go with them again or would it effectively be a fresh application?

Conrad

Guarantor option is highly unlikely - repossessing retired guarantors is too much for lenders to countenance.
People like Vince Cable keep calling for responsible lending, and the outcome is that lenders are shying away from risk. You may not percieve it as risk, but the letigious and bad publicity potentials are too rich to stomach.

There are other options but too detailed to go into here, so find a good local broker - preferably a small one with years of experience.

cc000001

Hi Conrad,

Thanks for the reply. Ok, so sounds like my parents house isn't going to be relevant.

What about their pensions though.... is this classed as an income in the same way a wage is? Could that be used in a Guarantor situation?

cheers,

Chris

pawpurrs

I am not an advisor but am in a similar situation, basically what I have been told is Guarntor prob wont work, but if one of your parents went as a name on the mortgage instead this would prob be more helpful, if age and income stack up, and yes pensions can be treated as income.

cc000001

Thanks for the advice pawpurrs.

I guess the issue there might be their age then? My Dad is nearly 61 and my mum is 58... so would they be able to get a mortgage at their age?

These pesky lenders... don't they realise I'm a trustworthy character who always pays up!?

AnAlternativeView

Out of interest - are you looking to buy a new home or is this as a second home? And where are you based?

olly300

cc000001 wrote: »

Thanks for the advice pawpurrs.

I guess the issue there might be their age then? My Dad is nearly 61 and my mum is 58... so would they be able to get a mortgage at their age?

These pesky lenders... don't they realise I'm a trustworthy character who always pays up!?

I suggest you go and see a broker as already been suggested.

They will be able to give you all your options.

And they are not scary.

Pensioners where able to get mortgages on their own up until recently but as the credit market has changed who knows.

cc000001

Thanks for the replies!

Yes, think I need to speak with a broker!

@AnAlternativeView I'm looking to sell my current home and buy a new one. I'm currently in Liverpool but looking to move to West Yorkshire, around Huddersfield area. Why do you ask?

AnAlternativeView

- Only that a couple of the 'small' / local BSocs I've known friends to use recently for non standard but prime cases. I don't know any north of Watford though! You can only ask but I agree see a broker as a FIRST step (and don't just see one!)

cc000001

Ah, ok. Thanks anyway.

Need to get myself to some brokers.... will post my experiences up here as i guess it might be useful for others.

Thanks to all for your advice.