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Another income, but they'll lend less!
Bluemeanie_2
Posts: 1,076 Forumite
Hi,
could all the regular experts please offer me an explanation.
I earn the most between my husband and I. I am employed, Hubby self employed.
Was considering moving so casting an eye around, thinking about budget etc.
The house we live in, I am the only one on the mortgage and deeds (I bought house with an ex, he cleared off, did a transfer of equity to me for no money as house was in neg or at 100% LTV) Hubby moved in the day after we married and we didn't bother changing anything. (I did remortgage for a better rate just before we married and let mortgage company know, he had to sign an undertaking).
Anyway my question is, I put my figures in alone with a few mortgage companies and together, and it came up they would lend less to us jointly than me on my own!
Why is that? Is it the self employed element, or the fact he doesn't earn very much?
Thanks
could all the regular experts please offer me an explanation.
I earn the most between my husband and I. I am employed, Hubby self employed.
Was considering moving so casting an eye around, thinking about budget etc.
The house we live in, I am the only one on the mortgage and deeds (I bought house with an ex, he cleared off, did a transfer of equity to me for no money as house was in neg or at 100% LTV) Hubby moved in the day after we married and we didn't bother changing anything. (I did remortgage for a better rate just before we married and let mortgage company know, he had to sign an undertaking).
Anyway my question is, I put my figures in alone with a few mortgage companies and together, and it came up they would lend less to us jointly than me on my own!
Why is that? Is it the self employed element, or the fact he doesn't earn very much?
Thanks
I'm never offended by debate & opinions. As a wise man called Voltaire once said, "I disagree with what you say, but will defend until death your right to say it."
Mortgage is my only debt - Original mortgage - January 2008 = £88,400, March 2014 = £47,000 Chipping away slowly! Now saving to move.
Mortgage is my only debt - Original mortgage - January 2008 = £88,400, March 2014 = £47,000 Chipping away slowly! Now saving to move.
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Comments
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How long has your husband been self employed?
How much is yours and your husbands income.
Who are you looking to mortgage with?
In a very simplistic form a lot of lenders will lend say:
4x the highest income plus 1x the second income if a joint app OR 5x the highest income if a single app.
The numbers entered are just for example only, but it gives you an idea.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks for your help.
Hubby been self employed since 2004
My income is £30k, Hubby's 10/11 return is £3600, 11/12 estimated to be about the same.
I would rather stay with HSBC (was put off with the conveyancing stories, but hopefully that will be sorted). Think Barclays was the main one that I noticed a huge difference in.I'm never offended by debate & opinions. As a wise man called Voltaire once said, "I disagree with what you say, but will defend until death your right to say it."
Mortgage is my only debt - Original mortgage - January 2008 = £88,400, March 2014 = £47,000 Chipping away slowly! Now saving to move.0 -
Its usually the case that the overall amount they will lend goes down if there is a large difference in incomes between the 2.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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I see. The difference is extreme between our earnings. We may just buy the next house in my name only then, depending on how much we want to borrow.
Thanks for your help.I'm never offended by debate & opinions. As a wise man called Voltaire once said, "I disagree with what you say, but will defend until death your right to say it."
Mortgage is my only debt - Original mortgage - January 2008 = £88,400, March 2014 = £47,000 Chipping away slowly! Now saving to move.0 -
Buying it on your own isn't going to help, they'll lend you less because it'll be single app with marital status - married.
Based on those 2 incomes only, i'd say a maximum loan size of £140k (and I have used no calculators.0
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