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Help finding a suitable mortgage
Tony_P_2
Posts: 1 Newbie
Hello, my situation is rather complicated so please bear with me.
Me (24), my mother (mid-50s) and her grandson (13, whom she is parental guardian of) are looking at moving out of the council estates and wish to renovate and old building or self build.
We each own our current properties outright, value of hers is 80k and mine 110k, we also have 10k savings currently. So thats around 200k collateral?
We also have our respective benefits and run a small business from home, which we wish to expand by moving to a property which has more space. I also plan officially to rent out my old property after the move to my sister for £450. Overall we have around £15,000 income a year. This would however grow as the business expands when we have moved.
The problem however is because we are self employed and our business has not been running for 3 tax years our maximum mortgage is 12k. That is against both houses with all our incomes. We both have good credit ratings and no outstanding debts.
Now a while back I looked into self certified mortgages as it seemed the ideal solution, however those are now dead and gone leaving us in quite the pickle.
Ideally we would be looking to sell my mums house which, with savings, would give us a nice round 100k to get started. However given current land costs and the councils current stance on planning permissions we would be looking at spending the entire amount on a the land alone, leaving nothing left over for the house. However if a renovation came up at auction (which they often do) we would need to spend upto 200k, meaning we would require a mortgage for the remaining 50%.
From what the mortgage advisor said, it wasn't so much our income that we the problem, more how it comes in. 2 Years ago we'd have been fine and he would have signed it off himself. However thats no longer the case with them having to report any circumstances to underwriters and such.
So I was wondering if anyone has any ideas on what we should do next. The only thing I can think of personally is to look for specific online mortgages for the self employed. So if anyone has any suggestions or reccomendations on what we can do next. Its greatly appriciated.
Tony
Me (24), my mother (mid-50s) and her grandson (13, whom she is parental guardian of) are looking at moving out of the council estates and wish to renovate and old building or self build.
We each own our current properties outright, value of hers is 80k and mine 110k, we also have 10k savings currently. So thats around 200k collateral?
We also have our respective benefits and run a small business from home, which we wish to expand by moving to a property which has more space. I also plan officially to rent out my old property after the move to my sister for £450. Overall we have around £15,000 income a year. This would however grow as the business expands when we have moved.
The problem however is because we are self employed and our business has not been running for 3 tax years our maximum mortgage is 12k. That is against both houses with all our incomes. We both have good credit ratings and no outstanding debts.
Now a while back I looked into self certified mortgages as it seemed the ideal solution, however those are now dead and gone leaving us in quite the pickle.
Ideally we would be looking to sell my mums house which, with savings, would give us a nice round 100k to get started. However given current land costs and the councils current stance on planning permissions we would be looking at spending the entire amount on a the land alone, leaving nothing left over for the house. However if a renovation came up at auction (which they often do) we would need to spend upto 200k, meaning we would require a mortgage for the remaining 50%.
From what the mortgage advisor said, it wasn't so much our income that we the problem, more how it comes in. 2 Years ago we'd have been fine and he would have signed it off himself. However thats no longer the case with them having to report any circumstances to underwriters and such.
So I was wondering if anyone has any ideas on what we should do next. The only thing I can think of personally is to look for specific online mortgages for the self employed. So if anyone has any suggestions or reccomendations on what we can do next. Its greatly appriciated.
Tony
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