Mortgage Advice for Self employed

davilown

Hi,

After some advice for sis and her dh. She is a housewife and he is self employed, turning over £60k worth of jobs in the last three month.

They have accepted an offer on their property for 500k which they've accepted, leaving them with around £240k equity for the next property. Problem has come when they've been told that they won't be able to get a mortgage even though they only require £60k (20% LTV) because of his credit rating which was shot during the bad winter (his company works outside and snow is especially bad!).

I'd lend them the money myself but don't have 50% of what they require.

There are properties to allow them to go mortgage free but as they have 5 kids (including three teens(MFF)) a three bed, however much attic they is, will fir them in comfortable.

Does anyone have any advice about who, if any, could help them? They don't want to turn the sale down as they know they will have done very well, and want to get off the interest only mortgage.

Cheers

powerwin

Who told them they can't get a mortgage?

How many mortgage lenders have they asked?

Rgds

davilown

powerwin wrote: »

Who told them they can't get a mortgage?

How many mortgage lenders have they asked?

Rgds

Apparently four brokers but not entirely certain who.

I understand about the credit rating etc but the LTV with income and books for six years should help them really?

powerwin

This is not professional advice ...

If four brokers have told them they can't get a mortgage then they probably can't ... but other than that, have you tried researching mortgage companies that specialise in loans to those with bad credit? Be careful though, as clearly these mortgages will be more expensive.

Rgds

powerwin

This is not professional advice ...

Also, what's to say there won't be another bad winter and he'll be stuck for the repayments ...

If you're self employed, it's best to err on the side of caution ... personally I would go mortgage free and live under less pressure.

Rgds