Trouble getting mortgage

laserboy31

I own two houses outright, no mortgage. I earn £14,000 a year and £6,000 from property rental. I have had an offer for £137,000 accepted on another property. I have a £70,000 deposit and need a £67,000 mortgage. The bank are saying they need to see my tax returns for the past 2 years. Can I get a mortgage based on my ownership of 2 properties, I can afford the payments on the £67,000 mortgage with my wages. I get the impression I am being badly advised by the bank.

ovoreo

Independant Financial Advisor.

I think you need some independant advice from an expert, rather than focusing on who you bank with, sounds like your not getting very far and an expert will be able to look at what would suit you and your position best. Good Luck.

dopester

laserboy31 wrote: »

I get the impression I am being badly advised by the bank.

Doesn't sound like the banks are advising you. Just that telling you what they need to see with your application for a mortgage.

You can't just demand they give you a mortgage on your own terms. If you've got the money to buy you can do what you want, but otherwise you have to sing to each different lender's tune when asking for mortgage money.

sharpee

Why can't you just show them your tax returns for the past two years? Or haven't you got/done them?

laserboy31

I don't have them.

JQ.

In that case you may be stuffed. Lots of banks got burned by the Self Certified Mortgages in the boom - those ones where you told them how much you earn and they believe you. They got a shock when Dave the petrol attendant wasn't earning £200k per annum and could no longer afford the mortgage on his £750,000 mansion.

Basically they are saying you have to prove your income for the last 2 years. If you have no proof it's unlikely they'll lend you the money, as you could be telling fibs.

Best advice - go and see an all of market Independant Financial Adviser, there are plenty out there that do not charge and up-front fees.

mustrum_ridcully

laserboy31 wrote: »

I don't have them.

Why don't you have tax returns for the past two years?

You have informed HMRC of your property rental income haven't you?

If you haven't then not getting a mortgage might be the least of your worries.

laserboy31

Yes, everything is above board. Had falling out with accountant who has tax return forms.

laserboy31

Can I get a mortgage using the properties I own as collateral, the new property I am buying will be rented by my son.

brit1234

laserboy31 wrote: »

Can I get a mortgage using the properties I own as collateral, the new property I am buying will be rented by my son.

I think banks need to see wages and tax receipts still. Gearing with so-called collateral was seen as a significant part of risky lending during the housing bubble and economic crises. It is even more risky with house prices falling again to the banks. As money with them is so short they will only lend to the best people and without your tax receipts you won't be one also you wage is very low.

laserboy31

Mortgage all sorted now. Went to Lloyds TSB and got mortgage through Cheltenham & Gloucester with no trouble whatsoever. Didn't need tax return forms, just remortgaged existing home.