Advice & fees free WTM advisor needed

michellej_2

Hi Guy's,...After reading many posts have decided to lay it on the line and see what you all think best for my partners situation,...

My Partner Situation!...
He has a mortgage on his home which he has held for 5 years now(after renting the property for 3 years previous)....
The mortgages are as follows.....£45,000 abbey...£360pcm..
.....£30,000 First national.£263pcm..(£3000 ER)
£30k from FI has been used to help keep things afloat over the last couple of years,...
Average monthly payments equalls.. £660(including Insurances)

The house is worth around £175,000,...(nearly £100,000 Equity)...

He understands that a remortgage would help resolve the struggle .
The only problem he see's is that he is self employed with no proof of income,..(no accounts no bank statements),..things are a little complicated.
As his puts it,..As his new occupation/business is importing vehicles/motorhomes from the states,...Which is a new adventure,...

Our thoughts are for a remortage for £95,000 ,...on a interest only ,...reducing our monthly payments and giving us around £17,000 cash
in which we would place a larger percentage into our account to cover payments ,...(As we understand that the motorhomes slow down after summer trading),...this will give us something to fall back on should the worst happen,...
Our intentions within the near future is to self build our own home,..(As my partner is a joiner by trade & has studied timber frames homes inside out,..)
The equity in the home was to do this with finance from the timber frame company also,..But with the new business its best this is put on hold for a year or so to give him more time to establish his business,...

We intend to sell in 2 years time and pay off the interest only mortgage,...
The equity & profits from business will hopefully release this dream of a self build without the need for any finances,...

Regarding the latest business,...He has put a lot of time into this from last year without any real gains,...And has struggled at times to pay the monthly bills,...we have borrowed from paul to pay peter and vice versa,..we have some late payments but no massive arreas,..quite upto date in that regard,..(although things could change as the business is a summer business even though its full time 12 months a year and still have out of season trading,..)

We see our plan B ,....As this!...If for some strange reason the new business never made a profit what so ever,....And assuming the interest payments are £500 per month!....£12,000 out of the £17,000 remortgage would cover us till we sell up in 2 years to start our self build,...

The self build company Stephen has dealt with in the past ,..have given Stephen reassurences that based on a £95k SB mortgage with payments as accounted savings they will give 95% towards build,...The savings will be the equity released from our home now,...

We know it will work ,..and have the plan we wish to follow,...but will a lender see our points of view?....

This new plan ...Give us a lot more to go for than the last few years doing nothing in regard to making this happen,...It gives us the security we need and gives my partner 2 years to establish the business (without any need to worry or make rash business moves)....As everything will be in our plan & covered no matter what,...
At the moment we worry each month regarding the payments,...Things are not stable at the moment,...And finding it hard with the new business ,..As Stephen is working when needs must in the building game,...Although this is not ideal as he ,...hung up his hammer(to concentrate on new adventure)..

He was partners with his cousin in the building game,...up until last year when Karl died...Karl was only 24 years old & very close to Stephen,...This effected Stephen,..
And was the reason for the new adventure ,....

Any thoughts on this will be welcome with open arms,...Maybe a fees free advisor might want to take this on ,...Well thanks for all your time and sorry to ramble on,...but think its best to explain the best I can,... Best Wishes & Thoughts Michelle .

P.S.....Please someone tell me this is achiveable & best route to take.:A

michellej_2

Come on guy's sitting with hope,...Michelle

HelpWhereIcan

Hi Michelle

In brief, raising the amount you want to should be possible depending on what income your partner is able to prove/declare and what income you have (if you are doing it as a joint mortgage).

Depending on these, you may need to use a self cert mortgage, but would need to be aware that not every lender will look at someone who has been trading for less than 2 years.

A few missed payments will not stop you getting a mortgage, but you may find that you do not have the choice of every lender.

I would say that you are not going to be able to get the level of advice you need in a forum and that you would be better off speaking face to face with a broker who can look at your whole situation and let you know what options you may have.

Good luck

Hope this helps

michellej_2

Hi and thanks for the reply,..Point taken regarding talking to a advisor,..The mortgage will be a single application & Stephen income is around £30,000 per year,...Pending sales!...Thanks again and any more thoughts would be great,..I know it was a long post ,..but even part advice is welcome,..Michelle