Mortgage advice needed, self-employed

jmb1

Hi. first post here though regular mse reader looking for some advice.

Myself and girlfriend have rented for the past year and now want to buy as hate throwing money down the drain, would rather pay the same or thereabouts into a mortgage each month. problem is i am currently self-employed (though looking/applying for full time paye which of course will make life easier as far as proving wage) but for now, heres our circumstances:

gf: on £17500 per year
me: self employed, profit for tax return to april this year £7500
deposit available: possibly up to £15000

we've seen houses ideal for our needs for sale at around £100k.

do we stand any chance of being loaned his amount on our joint incomes? i'm guessing not, but im still fact-finding at this stage as it may well be some time before i find FT work. and on that, do i assume ill have to show 3 months worth of payslips, therefore delaying a mortgage agreement before ive worked that long?

MANY thanks for some good advice greatly appreciated.

kingstreet

I expect the issue will be more about your ability to provide three years accounts, or SA302s to prove your income, rather than the amount you earn?

You don't mention any credit commitments, or dependents, so taking what you say on face value, you have a joint income of £25k and want to borrow £80k?

At 3.2 x joint income there should be a few lenders open to you. For example, the Halifax affordability calculator indicates a "C Pass" lending level of just over £94k at 85% loan to value on a 25 year repayment mortgage.

Conrad

Some underwriters can add certain 'costs' back into accounts to increase income as these costs are generaly cosidered to be accounting tools rather than real costs and as such mean the income shown in accounts is artifically low.

An experienced broker may be able to help you.

neverdespairgirl

jmb1 wrote: »

Myself and girlfriend have rented for the past year and now want to buy as hate throwing money down the drain,

Leaving aside the rest of it, paying rent is hardly throwing money down the drain. it's paying for the rather useful roof over your heads!

jmb1

relative to investing our money in a house is what i meant. sheesh

nzseries1

kingstreet wrote: »

At 3.2 x joint income there should be a few lenders open to you. For example, the Halifax affordability calculator indicates a "C Pass" lending level of just over £94k at 85% loan to value on a 25 year repayment mortgage.

Can you provide a link to this calculator?
I found other Halifax calculators through Google but not an "affordability calculator" that gave a grade

GMS

The grade will be decided by your credit score as decided by Halifax when they credit check you.

kingstreet

The affordability calculator doesn't provide a grade, it provides a guide to the maximum mortgage you can get based on the pass level for a mortgage promise.

Halifax has A, B & C, with C being the lowest level and therefore not the highest possible mortgage amount.

Therefore, using my earlier example, an applicant scoring an A for a Mortgage Promise would have the option of a higher mortgage amount.