What are the chances?

Lifeisbutadream

Currently have a house worth £250K (have had it valued at more than that, but told that it wont sell for more than £250K because of stamp duty etc.) it is currently mortgaged for £100k, so £150K equity there.

Would like to buy another house for approximately £150K - we can get 10% deposit.

We have debts of around £15K credit cards and loans.

We earn £50K between us.

What are the realistic chances of us getting a mortgage for the new property? the honest reason is that OH and I are splitting up and dont want one of us to rent, but I think we may have to be less than honest about what we are buying the new house for.

_Andy_

What are the reasons you've buying it for and why do you feel fraud is needed?

Lifeisbutadream

_Andy_ wrote: »

What are the reasons you've buying it for and why do you feel fraud is needed?

The reasons we are buying it is as suggested in OP.

_Andy_

Sorry had missed that.
Well in any case you need to be truthful about purpose of the application

Lifeisbutadream

_Andy_ wrote: »

Sorry had missed that.
Well in any case you need to be truthful about purpose of the application

Well I understand that, but because we are self employed it is going to be extremely difficult, which is why I asked on here what the chances were.

One of the options to consider would be to buy as a BTL, then change the use at some point in the future (i.e. in 6 months time) I dont know what the chances of even doin that are..

Suarez

Sell the house - take 75k each - Both buy a house each with a new mortgage each.

Simples!

Lifeisbutadream

Suarez wrote: »

Sell the house - take 75k each - Both buy a house each with a new mortgage each.

Simples!

There are many reasons for NOT doing this:

1. There will not be £75K left each after stamp duty and EA fees
2. Unecessary disruption to the children
3. We will still encounter problems getting mortgages as we are SE
4. despite the house having great equity, we have spent £80K doing it up, I dont intend to let someone else reap the benefits of that !

There are many more, but anyway, we dont want to do that...

kingstreet

One very simple, straightforward, answer for you. You aren't going to get a BTL mortgage with a 10% deposit. You'd need about 20%, maybe more.

Getting a mortgage when self-employed is fairly straightforward too. So what's the problem? Length of self-employment or lack of income?

It looks like lack of income. For the two residential approach to work, you'd need to be able to cover both mortgages, that's £235k and I can't see anyone agreeing to that on a joint income of £50k.

I'd also avoid using BTL as a way of circumventing the income rules for a residential mortgage. The FSA is aware it goes on and is monitoring lenders for such cases.

Lifeisbutadream

kingstreet wrote: »

One very simple, straightforward, answer for you. You aren't going to get a BTL mortgage with a 10% deposit. You'd need about 20%, maybe more.

Getting a mortgage when self-employed is fairly straightforward too. So what's the problem? Length of self-employment or lack of income?

It looks like lack of income. For the two residential approach to work, you'd need to be able to cover both mortgages, that's £235k and I can't see anyone agreeing to that on a joint income of £50k.

I'd also avoid using BTL as a way of circumventing the income rules for a residential mortgage. The FSA is aware it goes on and is monitoring lenders for such cases.

So in other words it isnt possible?

Thrugelmir

SELFEMPLOYEDMORTGAGES wrote: »

Hello

If you are looking for a mortgage or a remortgage and you are self employed please contact me on 07826542664 or 0121 532 2955. ask for showayb kari. We may be in a position to help you with your application. please feel free to contact me any time up untill 9pm everyday except sundays. call for a free intitial assesment and a no obligation quotation. :j

Tut tut. Suggest you read the forum rules before posting again.