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moving when self-employed question!

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jojo_sapphire
jojo_sapphire Posts: 242 Forumite
in Mortgages & endowments
Hiya,

we are both currently self-employed & have had a mortgage with nationwide for nearly 10 years & never missed a payment. Its on interest only at the moment, to enable us to set up the business.

our income is no where near what it would need to be to support the mortgage but we are managing fine. Its currently approx 50% mortgage.

the problem being that since we have had 2 kids the location of our crrent house isn't ideal & we would love to move. Nationwide have said no even if we didnt want to borrow any more (which shocked me). as we have made overpayments in the past they will happly give us 20k, but wont let us move!!!

We cant think of any way round this other than making my DH's business a Ltd. company so he can have a salary? Has anyone else done this? will it work?

Thanks

Jo

Comments

  • kingstreet
    kingstreet Posts: 39,256 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    jojo_sapphire wrote: »
    other than making my DH's business a Ltd. company so he can have a salary? Has anyone else done this? will it work?
    No it won't. Lenders treat limited company owners the same way they treat the self employed and look at their accounts. If your income is insufficient for the amount you need it will still be insufficient. Sorry.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • handytips
    handytips Posts: 372 Forumite
    You could talk to your lender, however i would stay put for the time being.
    I am a Mortgage Advisor. You should note that this site does not check my status as a Mortgage adviser, so you need to take my word for it. This signature is here as i follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldnt be seen as financial advice.

  • kingstreet
    kingstreet Posts: 39,256 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    handytips wrote: »
    You could talk to your lender, however i would stay put for the time being.
    Doh!
    had a mortgage with nationwide for nearly 10 years & never missed a payment
    Double doh!
    Nationwide have said no even if we didnt want to borrow any more
    :D
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • handytips
    handytips Posts: 372 Forumite
    Sorry didnt read the first post correctly, so amend my original post to. Stay where you are until your income improves.
    I am a Mortgage Advisor. You should note that this site does not check my status as a Mortgage adviser, so you need to take my word for it. This signature is here as i follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldnt be seen as financial advice.

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    jojo_sapphire wrote: »
    Its on interest only at the moment, to enable us to set up the business.

    Switch the mortgage onto a repayment basis and build your equity up.
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