Do we stand a chance?

rose7_2

Hi,
Hoping someone can help me with the whether there is any possibility of my husband and I getting a mortgage and if not what we could do to increase our chances.

We currently rent in the south-west and have been running our own business since 2007. Our self assessment (partnership) profits are as follows:

2009/10 £27,000
2010/11 £25,500
2011/12 £30,000 (estimate SA not yet complete)
2012/13 £32,500 (prediction)

FIL has said he would put up a deposit of £30,000. We have debts of £18000. My credit score is poor, DH is satisfactory. We are both on the electoral roll and have one dependent (with another on the way!).

We have our eye on a house that is £150,000 which is unusually cheap for round here. Thinking of making an appointment with a mortgage advisor but nervous about having our dreams shattered! Any thoughts?

Thanks in advance!

Dave_Ham

Think it will be a close call, given the level of unsecured debt..

You may spend your time more wisely by paying a mortgage broker a visit, as we have access to many banks rather than just the branch advisors who have access to 1.

It would be prudent to print your credit files and detail any late payments, defaults an/or CCJ's and the dates..

FIL will also have to declare to any lender that the deposit is a gift, so best to ensure he is happy with this in advance..

rose7_2

Thanks for your response. I kind of thought the debt was going to be a bit of a stumbling block. We're paying it off but its a slow process!

Simon_gloster

Also if your self assessment are those disclosed, how is it split? Also are they the incomes declared to Hmrc for tax purposes as that what lenders want.

If trading from 07, lenders wont want a projection for next year and you'd be expectes to have 11/12 done for mortgage purposes.

As mentioned, it'll be tight unless you can prove the debts go thru the business and are not personal liability.

rose7_2

Hi Simon,

They are the incomes declared for tax purposes and its a 50/50 split.

Although the debt was incurred as a result of starting up the business its our personal liability rather than strictly business debt.

Conrad

If your credit is poor, it's probably best to focus on your partner alone. There are certain workarounds in terms of partnership income that may require your Accountants assistance. So potentially a goer subject to the nitty gritty.