Is a mortgage likely to be possible?

giggles_alot

Hi All,

I'm hoping someone can be brutally honest with me and let me know if a mortgage is likely to be possible. I don't want to waste my time sorting out all the documents and approach a broker and waste their time if there is no hope.

Some background. I am 26, single and looking at first time mortgage (please forgive if any terms are wrong, I'm new to this and a bit of a mind field).
I have been self employed for a number of years, I have accounts for all years but some were only part time. Rough example of recent years, Tax year end 2010 £8k, 2011 £10.5k, 2012 £15k. Currently on track with monthly earnings for 2013 to exceed £18.5k. I have read mixed views that an average over the all accounts will be used to calculate the amount self employed people can borrow on a mortgage, is this the case? On an affordability factor, over the last 6 months I have earned enough each month to comfortably pay the mortgage more than 3 times over, does that mean anything?

House situation: I am looking to buy from a family member, the house has been valued at £130k. With savings and some good will from the family member, I am only looking to need a mortgage for £80k. I have hardly any other financial commitments, no dependants, no debt, nothing on finance, nothing owing on credit cards etc and as far as I'm aware a very good credit history.
If someone could give it to me straight, is my head in the clouds or is this likely to be possible and worth proceeding with further.
Thanks for any opinions.

gazfocus

I'm by no means qualified to give you concrete advice but I would say it would be incredibly difficult to get an £80k mortgage with those figures. Your best 'full year' was £15k so any mortgage, at best, would be based on that figure.

Dave_Ham

Hi there,

If you engage an average broker they will tell you that you have no hope.

A good broker will struggle, but can probably get close to the numbers you require.

You are aware of the barriers, firstly the income declared and secondly not all lenders will accept a transaction with an element gifted (sold below value concession)

You are close enough not to be wasting a brokers time though, so get yourself a recommendation of a good one and go get some specific answers..

Good luck

giggles_alot

Thank you both for the quick reply

Dave_Ham wrote: »

Hi there,


You are close enough not to be wasting a brokers time though, so get yourself a recommendation of a good one and go get some specific answers..

Good luck

I know whenever I apply it will be tricky with being self employed. I'll get everything accurate and approach a broker, I may be able to sell off a few things to boost savings and reduce the mortgage slightly. If not, I'm ahead of time with tax return which will be a first!
Thanks for advice/opinions.