New mortgage advice

jmb1

Hi there.

Looking for a mortgage, currently renting. I'm self employed with three years accounts of 2011: £7.5, 2010: £5.4, and 2009: £12k.

My partner is on £17k full time.

We have 10% deposit and looking at houses at £100-110k mark.

Both our credit histories and scores are fair (800 pts each) and no debts.

What are our chances of getting a mortgage for a property value/deposit amount based on these figures, and who can we go with, and on what terms would you advise?

Finally, my partner has only 2 months left before going on maternity leave, thus lower pay. Do we have to declare this at the point of speaking to a lender and signing up or do they just go on annual salaried income?

Advice gratefully received from you experts out there!

getmore4less

LTV on the high side.

Deposit low at 10%. ( you do have money for fees on top)

Main income about to reduce(you will have to tell them).

Self employed and very low income( not consistant).

very high risk for a lender and yourself.

What's on your credit history report that could cause concern(forget the score it is not relevent or used by lenders anyway) things like late/missed payments.

jmb1

I do have two missed payments to my mobile company in past 6 months. So I guess that, and with what you're saying, we'll have no chance, too high a risk.

getmore4less

jmb1 wrote: »

I do have two missed payments to my mobile company in past 6 months. So I guess that, and with what you're saying, we'll have no chance, too high a risk.

Regardless of what a lender thinks I think it looks too high a risk for you to consider.

Get your finances sorted so you don't miss payments
Focus on the self employment to get business and income up and sustainable.
Save.

See how things go on reduced income and review once things are stable.

jmb1

all you say sounds wise, we're just desperate for more space, especially so with a new one coming along, but I guess that in itself is reason to wait for more stability on all fronts. thanks for your advice.

musicmaker29

sorry if this should be another thread, but I'm in a similar situation (moneywise). i am employed earning around £20k, my g/f is self employed with up and down income. The difference is that our 5 year fix will be up in about 18 months time (great timing yeah?....or not) and we have never missed a mortgage payment. I have no missed bill payments at all and my g/f has a couple from a year ago when her business moved (just daft oversights to be honest and not anything to do with the mortgage). We only borrowed £81k to start with (although this was when my g/f was employed, not self employed).

given that I have always paid the mortgage promptly and fully, do you think the lenders will still look harshly on my g/f's self employed status?