Some Mortgage Advise Please

dawsonio

Hi,

Im currently looking to buy a house but have some questions that i need clearing up.

My wife and i are looking to get a joint mortgage around the value of 100k. Here are the problems.

1. My wife is from the Carribean and has only been in the country for 1 year she earns around 11k.

2. I am currently starting my own business up after graduating from university. Projected around 20k.

3. I have a very good credit score and have a few grand on some credit cards at 0%.

What are my chances of getting a mortgage. Im thinking very slim. If i could guarantee the 20k income how about then?

Are there any other ways i would be able to get a mortgage as we know we can afford £650 ish a month in repayments, we just need the bank to know that. Is it possible to get one of my parents to gaurantee sign the mortgage with me? (earnings around 48k).

Hope someone can help with these questions.

Thanks

herbiesjp

The mortgage you need is £100k but you do not say what the purchase price is - is it also £100k? Do you have a deposit?

Not many lenders will take your wife into account unless she has permanent right to reside(GB passport)

There may be some lenders that could look at a mortgage based on your sole income, but a deposit would be needed, and rates would be higher than normal.

A guanrantor mortgage could also be an option - but do not forget that the lender woul look that the guarantor would be able to pay not only the new mortgage but also their own mortgage if they have one as well as any other liabilities.

HTH

dawsonio

herbiesjp wrote:

The mortgage you need is £100k but you do not say what the purchase price is - is it also £100k? Do you have a deposit?

Not many lenders will take your wife into account unless she has permanent right to reside(GB passport)

There may be some lenders that could look at a mortgage based on your sole income, but a deposit would be needed, and rates would be higher than normal.

A guanrantor mortgage could also be an option - but do not forget that the lender woul look that the guarantor would be able to pay not only the new mortgage but also their own mortgage if they have one as well as any other liabilities.

HTH

The deposit would be 5% around £5,000. Also the house builder offers to pay 5% for first time buyers. My wife will get permanant right to reside next september but it will be a further year before she can apply for citizenship.

I think the guarantor route would be the best option.

MortgageMamma

Please note with regards to guarantor mortgages that many mortgage providers will only accept you for them if you are a professional on a pre-defined career track whose earnings will increase steadily over the coming years. A guarantors income and circs will be assessed just as your are , so if your parents are very old or have debts of their own this might not be the appropriate route. Also, if you are self employed you are unlikely to get a self certification mortgage for 95% ltv without a good trading history and evidence of earnings. If you are employed there is likely to be a minimum employment period. Whilst it is not impossible what you are trying to do there are a lot of barriers for you to overcome so speak to a professional, but in my opinion I would advise you to give it 12 months until your wifes residency is more secure and you are more settled in your chosen profession.

UK007BullDog

I absolutely second what MortgageMamma has said.

Use the time to save up and to get rid of the debts you have. This will help you even if house prices are going up. You need to have a chartered accountant as well, none of the "a friend who is a book keeper" type accountants, as you have not yet "proven" yourself in your business, most businesses fail in the first 3 years.

Sometimes it also helps if your wife can find a better paid job as well, or a second job to build up the deposit.

As a FTB self certing net trader you are looking at 75% - 85% Loan to Value so you need a deposit of 15 to 25% to put down.