Help needed to get a remortgage with additional borrowing for self employed !!!!

LearnerLawyer_2

Our current situation is as follows -

Mortgage outstanding is £104k with value of property approx £210k and we wish to borrow an additional £65k in order to build an extension - planning permission etc is all in place

Both my husband and I are self employed and although we can produce 3 years accounts from a chartered accountant due to the nature of our business and tax breaks that derive from it, our taxable profits are nil

Our accountant has produced a letter explaining that our income is actually £40k and likely to increase year on year as the tax break which we have taken advantage of is 'used up'

we currently overpay our mortgage by £250 per month and figures provided by our existing morgage provider and our bank show the additional borrowing would result in the same monthly payment

Yet we still can't get a blasted mortgage !!!!!

Our mortgage provider seriously undervalued the house - by £35k:( and our bank state our income is insufficient to meet the repayments although that's exactly what we are doing now !!! Abbey refused to approve because I have one - one for gods sake - missed catalogue payment !!

We have no adverse credit and no outstanding credit cards or loans etc

Please does anyone have any advice ???

I had considered a broker but wouldn't no where to find a reputable one and I'm worried that the more applications we submit the more this will affect our credit record !

HELP !!!!!!

Conrad

Ok, I have personal experience of something similar. My Accountant established a Directors loan account for me which effectively reduced the income and Tax considerably even though my income had not dropped. It's a perfectly legal tool in some circumstances.

I found Standard Life Bank and some others useful for these sorts of situations, but you need to take care they way you word things, as thier rule allow for such items but the way you position the landscape needs thought and care.

I'm thinking though SLB might not lend above 75%, so maybe try a small Building Socity that can 'take a view', rather than a big cumbersome national lender.

Good luck

LearnerLawyer_2

Well at least we're not alone in struggling to get a mortgage just because we've taken advantage of perfectly legal tax breaks:)

It just seems a very bizarre situation that although we can obviously meet the repayments - as we are making sufficient overpayments now - we can't get a mortgage !!