Self Employed Mainstream Mortgage

vixterg

Hello,

Cheltenham and Gloucester have put myself and my partner in a bit of a predicament...

I am employed with the same employer for 4 years earning £28K, and own a property on which I have a mortgage with C&G. In AUgust 2009 I called C&G to ask for advice on selling my flat and purchasing a house with my partner who is self employed - with 3 full years of accounts. C&G took me through a non advice interview, credit scored the both of us and issued (what I thought) was an approval in principle - a key facts illustration pack etc..

So I put the flat up for sale..I have now accepted an offer on my flat and I have had an offer accepted on a house we want to buy. So I called C&G up last night to confirm the mortgage etc..they took me through another interview / credit score then told me that my partner had been declined as his income had reduced from 10K in 2008 to 7K in 2009. (information they already knew about when the spoke to me previously?!)

We require a mortgage for £121,000 we have a 20% deposit. Based on the fact that they said my income can multiple 4x this leaves us with a shortage of £11K surely this not a risk???! based on what my partner earns! WE have no credit cards or debt etc..in fact I would say that we are the perfect people to lend to for the next 30 years...think of all the interest they will make from us!!

PS the reason that there is a decline from 2008 - 2009 is that my partner is a joiner - and if C&G hadnt notice we're in a recession - the building trade gets hit first....the business is fine - he has no debts is a sole trader and doesnt have accoutns pays for materials up front.

Will another lender be so harsh??
Any advice would be most welcome as I am now one very upset customer:mad:

vicshippers

An agreement in principle is just that - in principle and not a formal offer and is subject to more rigorous checks.

They take 3 years of self-employed accounts to see whether income is constant (low risk) or volatile (high risk). Unfortunately your partner does have a decreasing income, and so is a higher risk.

While it is very frustrating, it's worth considering what you would do if your partner's income dropped by the same amount next year. Would you be able to afford the new mortgage on your income alone? It's a horrible situation that you're in right now, but it might work out for the best in the long run

*I hope so!!!!*

herbiesjp

Another lender will not be so harsh.

You are employed, he has 3 years accounts.

You will find lenders willing to agree that mortgage for you.

If you are confident enough to DIY then have a look around - make sure the lender is happy with the income before you apply and get credit scored though.

Otherwise get in contact with a whole of market adviser who will be able to find something pretty quickly.