In urgent help for advise for FTB

Rosco1112

Hi everyone,

I am in need of some desperate advise because I currently live in a rented house and have made this my perfect home, however the owner wants to sell the property and I am desperate to buy it because I really do not want to move anywhere else.

Currently my girlfriends salary is £18000 and my salary is also £18000 however I have recently set up a new business with £10000 borrowed from the bank and it is making 2400 profit per month however I only have accountancy records for 2 months but this business will only grow and am 99% confident I can make over the £2000 per
Month profit.

The property value is £240000 and I have a deposit of £30000

My question is how much can I expect the bank to lend me and my girlfriend for a joint mortgage?

I appreciate we may only be able to use the £18000 per year salaries we both have and I do not have enough proof of earnings for
My business which I set up?

Would really appreciate any advice you may have for us, we will both be first time buyers and are 26 and 23 years old so quite young

Many thanks

Ross

Peter_L

Don't want to sound negative and someone more experienced/qualified will be along to answer soon but I would say at nearly 6 times your combined salaries then this is not going to work - certainly not from high street lenders at least.

You were right to assume that your new business adventure wouldn't be taken into account as you don't have at least 1 years worth of accounts and may jeopardise your application - are you PAYE or self employed ? Coupled with the fact you have a bank loan of £10k for this business then I would say that you stand little chance but go and see a whole of market broker who would advise you better.

Just to put things into perspective, we borrowed £152k 6 months ago with combined salaries of £55k and we 'just scraped it' on a £200k property (LTV 75%)

Rosco1112

Yea I thought it would be difficult.

The owner is prepared to wait a year until I have 1 years of filed accounts withy chartered accountant so after a
Years time and I maintain my promise
Of earning above £2000 profit per month on my business the loan will have been cleared. Will We be in a position to get a mortgage then?

Thanks for your help everyone

Regards

Ross

Rosco1112

Oh sorry we are both payee from our jobs
And then also self employed from my company where I get money via dividends from the company which are taxable

Peter_L

Rosco1112 wrote: »

Oh sorry we are both payee from our jobs
And then also self employed from my company where I get money via dividends from the company which are taxable

with this being the case then possibly but you will need to clear your debt and have a squeaky clean credit record ... or maybe a broker will come by and tell you otherwise ?

Good luck in any case

shortchanged_2

Yes it looks as if at that price the house is way out of your league I'm afraid. As others have stated that is nearly 6 times your current joint income.

As others have stated you don't have enough accounts to provide info from your new business, so any lender is unlikely to take them into account.

Who has valued the house? Is there scope for much reduction on the price?
That might be your best plan of action.

Rosco1112

Thanks for your replies,

So how many years of accounts do I need to produce?

I have read on here that there are quite a lot of lenders who are satisfied with 1 years of accounts and I could then even get a letter from my chartered accountant to prove that my income is long term and not short term

seems crazy if I can't get the mortgage after a year of accounts proving my monthly turnover and profit