Where to find a mortgage?

jaype

Can anyone give me any suggestions about where we could look for a mortgage? We are first time buyers. Husband is employed (salary 25k this year), I have been self employed since last July (income 22k). My accountant is just about to start doing my 2006-7 tax return so I'll have a year's accounts. Husband also has a second business (gross income 31k, but will be about 10k next year). He is just about to get his first year's accounts on that also. Do we have enough records for a high street mortgage or are we going to have to wait, and for how long? We would like to borrow around 225k. Thanks.

herbiesjp

There may be a couple of lenders that could look at the two self employed incomes, as long as the accounts have been done, and also take into account the employed income.

They may well ask for projections for the second year.

What is the purchase price and what depsoit do you have to put down?

jaype

The purchase price would be 250k and we will have a 25k deposit.

Mr_helpful

You could self cert at 90% quite easily

jaype

But what would the approximate rate and repayments be? That's why I'm nervous about a self-cert. Aren't they on at about 6.8% or something, as compared to about 5 point something for a regular mortgage. And where's a good place to go - broker?

chinup_3

jaype- you should always use a broker anyway, full stop. independence, broker only deals etc etc. secondly- just sit down with 2 or 3: it doesn't cost anything ! tho' ask first as matter of course !

Mr_helpful

90% self cert is more like 5.7% currently but it does depend on what you want in the way of fix or tracker and term etc

herbiesjp

If you can get a good high street rate the I owuld suggest that would be your first port of call.

If after talking to the lenders, either yourself or via an adviser, it becomes clear that they will not take the self employed income into account, the at least you have exhausted that option and you can the look at self cert options

If you go direct please make sure that the lenders will not credit score you straight away, as it may harm your creit file file if too many searches are carried out