Mortgage Advice please - 90% LTV Self Employed

lawyer

Hi, could really do with some guidance from those 'in the know'.

I'm in the process of making an application for a mortgage with HSBC for 90% LTV and wanted to get a feeling for my chances of success. I should say that I'm a solicitor and a partner, which means I'm treated as self employed even though I have a guaranteed profit share.

My circumstances:
Age = mid 30s
Net take home £4000
Expenses (food utilities etc) = £800
Deposit £35k
Purchase price = £350k
Mortgage Repayments over 30 years circa = £1600
Over the last 5 years been paying about £1k a month rent and saving £1k too.
No debts except car repayments (included in the £800 above)
No CCJ etcs

The HSBC online calculator suggests that they would be prepared to lend the £315k needed but I'm concerned by what I've read from others re HSBC.

On the face of it I would class myself as low risk as repayments amount to 40% of take home but would really appreciate the views of those qualified on here.

Prospects of success?

Many thanks

GMS

HSBC are just about the pickiest out there particularly at high Loan to Value.

Good luck with it.

Simon_gloster

Net take home pay £4000, what is declared for tax as this is what you will have to prove via hmrc.

Any % partnership even if PAYE with HSBC is classed as self emp.

lawyer

GMS wrote: »

HSBC are just about the pickiest out there particularly at high Loan to Value.

Good luck with it.

Thanks GMS, as a mortgage adviser, what's your general view? Do the numbers look about right or am I kidding myself?

lawyer

Simon_gloster wrote: »

Net take home pay £4000, what is declared for tax as this is what you will have to prove via hmrc.

Any % partnership even if PAYE with HSBC is classed as self emp.

£73k per annum gross
No PAYE
Self Assesssment tax return prepared by the firm's accountants

GMS

How many years accounts do you have?

Almost 5 x income excluding deductions. At 90% I wouldn't be too optimistic of HSBC agreeing this. I hope I am wrong and stand to be corrected.

Simon_gloster

If £73k shows on your SA302's then it more than achievable. Even with a partner and child should be ok. If your single and no kids give them a call and find out.

HSBC are very choosey at 90%.

Conrad

I'm presuming the OP is a professional of some sort? There are 90% options where a couple of lenders could consider your accounts from a side long view, meaning a sympathetic approach is take, and they aren't all hung - up on Taxable income in the way most lenders are. This is because they understand someone like Ken Livingston earns more than his Ltd co accounts would indicate and that expenses are typically 'notional' in many cases.

kingstreet

Conrad wrote: »

I'm presuming the OP is a professional of some sort?

Yep. Can't imagine this case being much of a problem. Mention of HSBC, so OP is rate chasing, rather than worrying about being successful in getting a mortgage.

I should say that I'm a solicitor and a partner, which means I'm treated as self employed even though I have a guaranteed profit share

lawyer

kingstreet wrote: »

Yep. Can't imagine this case being much of a problem. Mention of HSBC, so OP is rate chasing, rather than worrying about being successful in getting a mortgage.

Hi, not entirely sure what you mean. Isn't the idea to get the lowest rate on your mortgage?

HSBC appears to offer the best rate for a 90% 5 year fix, are you suggesting that I should have tried another bank first with a higher rate of interest?

Probably worth saying that I didn't realise at the outset that HSBC were anymore fussy than other other banks.

If you could suggest a current mortgage product at 90% LTV for 5 yr fix in the region of 5% interest with a more flexible lender, I'd be most grateful.

Thanks

kingstreet

Mr lawyer, we get many, many people on here asking if they can get a mortgage. They have problems with deposit, credit, visas any number of things.

In your case, I was suggesting to Conrad that your issue was getting the best deal, not a worry about getting a mortgage.

It was a simple observation to a fellow broker who seemed to think the case was more problematic than it is. If HSBC is the best deal for you, go for it.