mortgage salary calculator

HollyUK

Hi I'm new hear.

We have been a bit stupid and now need to consolidate our debt by adding it to our mortgage. A painful lesson.

Can someone give me some idea what the accepted calculator is for salary to amount we can borrow? (Can't remember what it is called). It is some years since we have applied for a mortgage (20 years!) so I want to be prepared.

Also both my husband and I are self employed so if there any particular mortgage providers that are good for the self employed?

Thanks!

herbiesjp

Welcome to the board

You are looking for income multiples I believe

A lot of lenders do not use these any more, but rather use an affordability calculation instead.

Do you have your last 3 years accounts?

What is the property value and what is the mortgage amount needed?

HollyUK

Our property is worth approx 310,000 and we would like a 179000 mortgage. This will consolidate our debt and all our current lending and mortgage.

I have accounts for the last 10 years (although my year ended is 1st August and I have to get the most recent ones done). In May my husband took over another small business I started a year ago (he was salaried up to then). Looking at invoices and expenses that business has made around 4,000 and is growing - we are set to expand in January.

Our mortgage is with the bank (HSBC) and they are trying their best to make us feel bad about this and have not made a decision yet they have asked for audited 6 months accounts for the new business (which costs more money!). I wonder if it is worth approaching another lender, or if they are our best bet as we have been with them for 30+ years.

I think it's going to be tight, but by pulling together, making savings where we can, and expanding our businesses (which we can concentrate on when the worry of the debt has been lifted) I believe we can get back on top.

I look forward to your thoughts.

Thanks

herbiesjp

What were you last years income figures for both of you (Net profit)?

The loan to value is in your favour, so assuming the income figures stack up you should be ok with finding lenders to agree this for you. What is the actual figure you are raising on top of the current mortgage to consolidate your debts?