Mortage rate pulled away due to self employed income

strutter

Have been to speak to Partners Financial about getting a mortgage with a house that an offer has been accepted by the associated Estate Agent.
The initial mortgage rate offered is now not available to us due to a secondary self employed income not being 'up to scratch' as far as the desired mortgage provider.

We have signed papers for illness cover, a direct debit mandate to start the mortgage, etc but now feel the current offered mortage a whole 1% higher fixed rate on an 85% LTV mortgage.

It just feels crippling and wondered where we stood with now getting a mortgage agreed with someone else, i.e. Natwest (which aren't covered by Partners Financial).

What are thoughts on how this could put our offer and purchase of the house (we really like it) at risk by delaying and using an 'external' mortgage provider to their own.

Look forward to hearing comments on this.

herbiesjp

What are the figures you are looking at?

Purchase price? Deposit?
Gross salaries?
S/E income? How long has that income been received?
Any other debts?
What lender/rate have you been offered?

strutter

85% LTV - 104500 Mortgage amount

Applicant 1: Gross contractor pay per annum £16500
Applicant 2: Gross salary per annum £15444

Other income self employed, self certified tax returns for past 4 years. Only current year shows estimate of £14000 profit.

Applicant 1 has personal loan at £165 per month, ends November 2011.

Lender initially offered Accord, but they only give around 2.5 times salary.

Now offered A&L at 5.39% with 2k set up fee fixed for 3 years, or Abbey National at 5.39% fixed for 2 years.

Thanks.

beecher2

If 5.39% feels crippling, then I'd be concerned. What happens at the end of 2/3 years if rates are much higher?