Can I get a mortgage?

tons

Hi I would love some advice before I go to the bank - as I fear I will be laughed at!

I am self employed I have a low income (under 10,000) and my income equals my expenditure.
I have found a house that I want to buy together with my partner, the house is £65,000.
We can get £17,000 as a deposit and my parents will be guarantors. My partner is also self employed though he has only become so 6 months ago so. He has a poor credit rating and I have a good one.

Do we have any possibilities? or have to wait to be able to show a better track record - its just that this house is excellent value for us and I dont think a deal as good will come about again. . .

Any thoughts??

HappyMJ

Self certification mortgages would have been the only way you could get the mortgage however they no longer exist. Rather than you try unsuccesfully to get this mortgage why don't your parents who are willing to be guarantors anyway get a buy to let mortgage on the property you are thinking of buying and moving into and then rent it to you on a tenancy agreement. Then once you have paid your parents 300 rent payments they could then gift you the house.

ACG

this is one of the pains of being self employed (im in the same boat), until you have atleast 1 years accounts more like 2-3 though really unless you have a decent deposit its very hard to get a mortgage.

tons

Thanks, but is £17000 not a decent enough deposit on a 65,000 property?

ACG

It is yes, but the lack of income/accounts is the issue.

I was just saying that you could possibly get a mortgage with 1 years accounts (showing enough profit - around £13k plus in this instance) so long as you have a hefty deposit (25% or over)

Dave_Ham

Forget your partner for a second, what expenditure do you have which is fixed - ie credit commitment for loan etc.?

I would suggest if your rating is good, you could potentially get 4-5 times your income (subject to approaching the right bank) and minus any fixed, credit commitments..?

Your parents would not even need to be a guarantor, just willing to declare the deposit as a gift.

I reckon you may be able to get close and then add partner on in 2 years time when he will have accounts etc. subject to independent legal advice obviously...

tons

I only pay only around £150 a month in loans and a credit card. . . I am ordering an experia credit report to find out more acquarately my credit rating

Dave_Ham

Ok, so it will be tight.

Get your Experian and Equifax reports and then head to an experienced broker.

Only way the variables can be pulled together and you may get somewhere close to what you need.


Good luck