Mortgage Advice

60BOWENS

Been working in governmental agency for over 7 years.
Since Feb this year set up a Limited Company with weekly income above £4000.
Got a mortgage on a property(still got 190K) for a property valued recently at 245K.
Need help/advice on how to procure mortgage to buy a property worth about 450K.
Heard that I may not be eligible for mortage for upto 2 years after being self employed.My wife is employed as a clerk with NHS,will this help?
Any advice will be of great help.

Yorkie1

Are you now self-employed in the Ltd company (i.e. given up your previous job)?

I read on here that you will need at least 1 year's accounts, probably 2 or even 3 - depending on the lender - for that income to be taken into account.

dimbo61

spend the next 18/24 months overpaying your existing mortgage as if you had a £400K mortgage at say 4%
That way you are reducing your mortgage debt and increasing your equity in your existing home
this will help you get a much better deal as you may have say 20/25% equity in the £450K property
thats £100/125K

60BOWENS

Yorkie1 wrote: »

Are you now self-employed in the Ltd company (i.e. given up your previous job)?

I read on here that you will need at least 1 year's accounts, probably 2 or even 3 - depending on the lender - for that income to be taken into account.

Would that mean I could still try for mortgage based upon my previous regular salary?
Yes I have resigned the previous job and set up my own Ltd company yet working for the previous employer.
let me know your thoughts

60BOWENS

dimbo61 wrote: »

spend the next 18/24 months overpaying your existing mortgage as if you had a £400K mortgage at say 4%
That way you are reducing your mortgage debt and increasing your equity in your existing home
this will help you get a much better deal as you may have say 20/25% equity in the £450K property
thats £100/125K

Thanks for the advice.I could potentially pay off the remaining 190K in next 18 months or so.
The property which we were interested came up in market rather suddenly that we are now desperately searching for help to buy it if possible.

SteProud

60BOWENS wrote: »

Would that mean I could still try for mortgage based upon my previous regular salary?
Yes I have resigned the previous job and set up my own Ltd company yet working for the previous employer.
let me know your thoughts

There are some specialist IFAs who deal with limited company contractors. these guys might be able to help

www.contractormartgages.co.uk

tenacious

I am an IT contractor under a limited company that I only started in March (previously permanently employed for 11 years). I didnt think we would be able to get a mortgage but I went to a specialist broker recommended by my accountant and we are just waiting for our ofefr (everything crossed) They do their sums based on your daily rate and it didnt seem to matter that I had just started and didnt have 1 years account. Just needed 3 months personal and business bank statements, a copy of my contract and a letter confirming the likelihood of an extension. We are just waiting for the credit scoring now and have passed the affordability bit.

We have an existing mortgage but we rent that property out so effectively it is classed as self financing. (would you be doing this or keeping both)

A search online will bring up a number or specialist brokers who deal with this and they know which banks are flexible and open to it and they approach the underwriters directly.
HTH

tenacious

This is who I used by the way...

http://www.contractormortgagesuk.com/