Mortgage wanted, I am self employed.

angelsmomma

I am self employed without an accountant, I do my own accounts. I do domestic work privately for regular clients but have only been self employed just over two years.

My home is mortgage free and in this market worth around £85000.

Would it be possible to raise a mortgage of around £38000 on this property on my income of around £15000.

I want to buy a smallholding in orkney to let out for a year then move into myself.


sorry should have mentioned I have a good credit record.
Thanks for any advice

Crashandburn

Best get your SA302s ordered from your local tax office. Its a HMRC document confirming your income. Taking about 6-7 days at the moment.

I would say most lenders would need this.

You'd need to speak to lenders re the purpose of borrowings to make sure it fits within their criteria but it should be quite easy to get the finance based on what you've said

angelsmomma

I am going to sound gormless now but what is a SA302. I submit self assessment forms and they send me a letter stating I don't owe anything in tax, is this it.
Thanks


I am gormless,:o I have just looked at these letters and they are indeed SA302s

Thank you very much

Crashandburn

Doh!

Issue you may have is that some lenders affordability calculators are less generous on smaller incomes ie they assume a high level of expenditure against your income. All comes down to if you have dependants/other debts etc

angelsmomma

You are so right about the lending criteria.

I have been arranging one with a broker today. I went through Virgin, I have a Credit card with them. I asked if they could arrange a secured loan but it seems because I don't have a mortgage on the property this is not possible.

I can only get £32000 because of my level of income. Its not too much of a problem though as I do have some savings. I am quite pleased with it as it is a 5 year fix at 4.59% on a ten year mortgage. This is better than I expected all things considered.

I don't have any debts myself but lent my friend my credit card (I know !!!! don't tell me ) she is paying it off at well over minimum payments but it still has £3500 on it so of course they took that into account when assessing my credit.

Thanks again