Recently self employed remortgage question.

aranger

I bought my house around 8 years ago through right to buy and then 5 years ago I got a home improvement loan which was affordable until a year ago when my car had a mechanical fault and went on fire (not covered).

Then at around the same time our roof was condemned and although we got a good grant to fix this we still required another loan.

I was in employment and things where o/k till my work put a stop to overtime and I couldn`t afford my bills so to make more money I started up as a sole trader HGV driver 3 months ago.

My adviser from bespoke money is struggling badly as my wives wages fall just short of amount required and he says nobody is accepting my income due to new rules.

Does anybody specialise in this type of problem or should I get a for sale sign outside the house and try the council for rehousing, although I can afford it all at the moment just one small thing will see us in trouble and we have around £40000 of equity we could lose if we end up getting repossessed.

Thanks for any advice.

smartiedriver_2

Hi. I would recommend you post your SOA on here so we can make some suggestions.

In terms of 'new rules' what are these and whose rules are they? We need to understand this in order to assist you.

The Bank I work for would take an average of three months' income for a self-employed person, if you had not been in business long enough to generate tax returns.

angelsmomma

aranger wrote: »

I bought my house around 8 years ago through right to buy and then 5 years ago I got a home improvement loan which was affordable until a year ago when my car had a mechanical fault and went on fire (not covered).

Then at around the same time our roof was condemned and although we got a good grant to fix this we still required another loan.

I was in employment and things where o/k till my work put a stop to overtime and I couldn`t afford my bills so to make more money I started up as a sole trader HGV driver 3 months ago.

My adviser from bespoke money is struggling badly as my wives wages fall just short of amount required and he says nobody is accepting my income due to new rules.

Does anybody specialise in this type of problem or should I get a for sale sign outside the house and try the council for rehousing, although I can afford it all at the moment just one small thing will see us in trouble and we have around £40000 of equity we could lose if we end up getting repossessed.

Thanks for any advice.

I doubt very much that you would get any housing from the council since you would have made yourself homeless. There is also the fact that it was the house you bought off them under right to buy that you sold. You would need to look at private renting.

I am self employed and they used all forms of income for my mortgage including the child support I get from my sons father. This was in May so I am not sure what the new rules are. Have you tried another broker?

aranger

Was told new rules came into place last year regarding self cert income mortgarges being banned or frowned upon, just phoned Northern Rock Asset management who supply my mortgage and their advisers have also said they can`t use my income.

My wife earns around £15150 pounds a year with £130 pounds a month child support and around £25.00 family credit.

I generate invoices for around £450.00 to £590.00 which are paid to me weekly plus i keep 10% of the VAT through the flat rate scheme.

I have £50257 mortgage outstanding (£300 per month) and £14.726(£282.00 per month) secured loan and £1800 for the roof(£180 per month) and £4300 for my car (144.20 per month).

Catalogue are about £180 a month.

2 children aged 13 and 8.

Would probably keep the car loan and catalogue and pay the rest so about £67000 over about 18 years is required.

Thanks for speedy replies.

Sorry to offset tax I claim milage, meals and expenses which also means my profits would not look as healthy as my claim for this is around £160-£220 per week.

smartiedriver_2

aranger wrote: »

Was told new rules came into place last year regarding self cert income mortgarges being banned or frowned upon, )..

Yes, this is correct. Too many people saying they earned £40k when in fact they earned £12k!

smartiedriver_2

angelsmomma wrote: »

There is also the fact that it was the house you bought off them under right to buy that you sold.

Completely irrelevant. And if you are making yourself homeless by selling before it's repossessed it's the same as being made homeless after being repossessed.

That said, it's doubtful the council would be in a rush to assist.

aranger

Just been informed by the advisor that he could not help me.

My wife will have a few more hours to add to her earnings next month meaning she should get £19800 a year if including child benefit and credits, is this enough to borrow £65000 if none of my earnings can count.

kingstreet

aranger wrote: »

Just been informed by the advisor that he could not help me.

My wife will have a few more hours to add to her earnings next month meaning she should get £19800 a year if including child benefit and credits, is this enough to borrow £65000 if none of my earnings can count.

Unlikely. Not with the continuing £320 a month ongoing credit payments.

For example, I've keyed the data into the Halifax affordability calculator;-

£19,800 pa (not split up income, child benefit etc).
£67,000 mortgage on £105,000 property value (64%).
£320 per month credit commitments.
18 year term.
2 adults on mortgage.
2 dependent children.

The maximum mortgage being calculated is £13,880 based on the top A credit score.

Sorry.

kingstreet

What balance is left on the catalogues for the £180 per month payments?

aranger

kingstreet wrote: »

What balance is left on the catalogues for the £180 per month payments?

She has 2 that total just over £3000, we had a wee row about it.:mad:

If she applied by herself her name is not on the car so around £69500 would pay off all debts and leave just the mortgage.

Sorry the valuation of the property was £95000 five years ago but has recently had a new roof, double glazing and bathroom has been renovated so should have retained this value.

aranger

kingstreet wrote: »

What balance is left on the catalogues for the £180 per month payments?

Just did the calculator you mentioned and it seems if I am doing it correctly she would be o/k if I was not in the picture.

So if I was to leave would she just apply by herself or will they still include me in the application.