Advice on mortgage please

FLUFFPINKKITTEN_2

Hi, I have seen a property valued at 300,000 which has 4 bedrooms and is in an ideal location to run my current business from. I currently have a mortgage for 27,000 which is costing me only £30 a month with Santander. The house i bought (with my student loans :-) is now worth around £100,000. I have approximately 40,000 in the bank. My NHS part time income is approximately 20,000 per annum and I have a new business (2 years) where my gross income is 1,000 per month approx at the moment. I currently pay 1/4 of my earnings from this business in rent for the premises. I would like to take on foster mums and babies...but can only do this if I move to the bigger property, but this may bring in a small income also. I need to know A)whether I could get a mortgage for this amount, B)Whether there would be any benefits from running my business from a new property as opposed to renting C) Would I be best of renting or selling my current property. I live in Staffordshire and would be most grateful of any help.

poppy10_2

Seems like a bit of a complex case, you'd probably be best sitting down with a mortgage broker.

If I've got it right, you have £73k equity in your current property, plus £40k cash to use as towards your deposit. Thus you would need a mortgage of £187k on a £300k property (62% LTV). That shouldn't be a problem. The main issue will be your income - at a combined £32k per annum (taking into account your NHS wage and your business income) you are asking for a mortgage of almost 6 times your income. Plus the fact that you are buying the property for business rather than purely residential purposes will complicate matters.

FLUFFPINKKITTEN_2

Thank you Poppy10. I know it is really complicated. I wonder if anyone knows of a good mortgage broker / financial advisor in the Cannock, Staffordshire area?