Income multiple issues

kingster2069 · 9 June 2011 at 8:00PM

Hi everyone,

I'm wondering if anyone knows of a lender that will look at our incomes as a whole. For several years my wife and I have been trying to get our business up and running. Whilst it's taken 5 years in all, we are now both full time and earning £60K+ combined. Our income over the last 5 years hasn't dipped below this level.
We are looking to get a better rate, as our LTV has dropped from 80% LTV to 65% LTV. The trouble is both have us, have worked for other comes whilst trying to get our business up and running. I gave my position up in Sept 2009, my wife in Sept 2010.
The mortgage advisor we saw today said they couldn't offer us the amount we needed, because they could only use our 2nd lowest business income over the last three years. That was two years ago when I worked half the year for another company and my wife worked the whole year for another company.
I understand why they are saying it, but was wondering if any other mortgage company would be more tolerant of our change in working. Our income multiple based on our last years accounts is less than 3 joint.
Any advise is welcome, even if it's just to say you understand the banks position.
Thanks

Senior_Paper_Monitor · 9 June 2011 at 8:50PM

Do I understand from your post that your 'mortgage adviser' is a bank employee ?

kingster2069 · 9 June 2011 at 8:54PM

Senior_Paper_Monitor wrote: »

Do I understand from your post that your 'mortgage adviser' is a bank employee ?

Yes, working for the Co-op bank. Not a IFA.

Senior_Paper_Monitor · 9 June 2011 at 9:06PM

Right, so not an adviser as it would defined in my (and I suspect many people here's terms).

He/she is sales clerk telling you whether you fit the criteria for their products (which apparently you don't).

Find a whole of market or independent mortage adviser (or IFA although not all IFAs are really that mortgage orientated/knowledgeable or even willing to do mortage stuff) that you feel confident with, provide them your full details (accounts etc) and they will tell you what is possible.

I have a couple of self employed going across my desk at the moment that despite excellent earnings (declared) and records (one set kept by a book keeping firm who didnt have the releavnt qualifications for the lender) that you would expect to be a walk in the park (the same one makes your very acceptable apparent income pale in comparison) that have both taken hours of work to get through.

On the limited information you have given you sound 'do-able' (but placing most self employed these days is certainly not straightforward) but the full answer will only come from an experienced/qualified adviser.