Please Help!

mum2phoebe

Hi there,

I could really use some advice on a sticky situation my husband and I are in. We are currently Council tenants going through the Right to Buy process but are having some difficulties with a mortgage. My husband is self employed and has a low net income. I am a teacher but am currently on Maternity Leave and am not returning to work. We need a mortgage to buy the property we're in, however, we don't see a way to get one.
My husband is unlikely to be able to get a mortgage in his name (even though the mortgage payments would be less than the rent we've never missed a payment on!) as we're currently fighting MBNA for unfair credit card charges (a whole other story!!! :mad:) and they've added a mark to his credit score. I won't get a mortgage as I am not returning to work.
Does anyone have any suggestions? We really really don't want to let this property go as it's being offered to us for a brilliant price.

Thanks

beecher2

If your husband's pay isn't enough to get a mortgage then I can't see how you can do it since you won't be working. You'd have to change your mind about returning to work I think.

mum2phoebe

It's only considered low in terms of net income, gross income is fine I think. Not sure what they calculate it on though?

beecher2

Go to see a mortgage adviser and let them go through the figures.

Chinkle

Does your husband have 3 years worth of accounts for his business? Do they show an income that would support the costs of the mortgage?

Mortgage companies look at gross income, but can't understand why you would say your OH's net income is low, do you mean turnover versus profit? Personally, he would be paying the same rate of taxes as anyone else, in fact if he has a good accountant then he may be working more tax efficiently than many employed people.

Best advice is to see a mortgage advisor who will look at your whole situation and let you know if there is anyone likely to be willing to loan you the money you need. If the answer is no, then despite the bargain rate you could get your house at, if no-one will grant you that loan then you will have to carry on renting.

Thrugelmir

Chinkle wrote: »

Mortgage companies look at gross income, but can't understand why you would say your OH's net income is low, do you mean turnover versus profit? Personally, he would be paying the same rate of taxes as anyone else, in fact if he has a good accountant then he may be working more tax efficiently than many employed people.

A good accountant merely ensures all the allowances and expenses are claimed, and the right amount of tax is paid. That's all. Comparison with "employed" people is irrelevant.