Worried

jackie_w

Hi There,

Went to see my mortgage advisor yesterday, to apply for a mortgage of £190,000. We are putting down a deposit of £52000. We bought the house for £242,000 & its valued at £250,000.

Husband is self employed. He first started his business in feb 2003 on a part time basis, then, Nov 2005 went full time self employed. He is doing really really well.
When I went to see mortgage advisor I explained when business started, and when he went full time self employed. He said because the company was actually up and running since 2003, he was going to see what he could do as we might not need to go to the lenghts of getting books and projections for the coming year from the Accountant.

We have a couple of comittments but, they arent very large amounts, but, there are a few cards with little amounts, but, these will be paid off before the mortgage starts, Ive told him all this, and he has written down that they will be cleared.

Anyway, he said he would get back to me yesterday, he didnt, so I called him and he said there ws a couple of things he had to do & would get back to me first thing this morning. He didnt. I called him after 12 noon, and was told by a secretary that he would get back to me ina couple of minutes, but, he still hasnt phoned me.

Im getting really really worried now that there is a problem (I am a worrier and I wont stop worrying until its all settled).
Our credit history is good/excellent depending on which credit reference agency you look at. We have never been in arrears (were late with a couple of payments in 2004, but, never behind), and the income shouldnt be a problem either.

Do you think im worrying about nothing, and if he doesnt call me by 4pm, should I call him back?

Sorry for the long story but, I would love to have someone elses advice please.

The bank the Mortgage Advisor is trying is the Abbey.

Jackie

brannyrhino_2

Your worrying unnecessarily .Give him time. Decisions from some lenders can take several days to come through depending how busy they are at that moment in time.

Relax if its meant to happen it will.

Poppy9

OMG £190k mortgage, self employed. Are you working?

My OH was self employed for over 10 years and we had years when the money rolled in and a few lean years. We would never have committed ourselves to such a large mortgage, even during the good years as I was only working p-time.

Think carefully how you would manage if your OH couldn't work due to accident, ill health etc. Will your income protection policy cover you. It's trickier with self employed as you have to provide evidence of recent earnings and if you have been unwell and in general decline your earning can be low.

jackie_w

Thanks for your concern Poppy,

My husband has a very good business head on him, and he has all things planned should anything happen.

His business has a very very healthy turnover, and that and the advice that his accountant gave him was the only reason why we have went for a big mortgage like this, and we will still have some savings too.

Jackie

Scott

You really, really need to ensure that your MPPI covers self employment, as many don't.

I wouldn't think that you would need to get extra accounts done, as you should have a good few years behind you, showing a good history of the business growing.

Have you considered contacting your husband's business relationship manager at the bank he has his business accounts with to see if they can offer anything? Would remove a lot of the hassle, I'd imagine, since they already know your husband/financial situation.

MortgageMamma

I'm sre the adviser is doing his/her best. Arranging these thigns isnt always a quick process - a lot of the time it's down to udnerwriters at the lender etc - but your broker should have taken your calls and reassured you. Don't get into a flap about it, if the abbey dont accept there will be plenty of lenders that will.

JoeK_3

jackie_w wrote: »

His business has a very very healthy turnover, and that and the advice that his accountant gave him was the only reason why we have went for a big mortgage like this, and we will still have some savings too.

Jackie

Hi Jackie,

A business is not good because of turnover; profit is the all-important thing.

What kind of an accountant makes a recommendation to take out a large mortgage? There are no advantages in having a large mortgage these days, as there is no tax relief available on a domestic mortgage.

Jackie, what are your concerns then?

JoeK

billymadbiker

I am also self-employed.
My turnover is about £85k/year but my earnings/drawings from it are about £22k a year.
My best (?) year to date was a turnover of £128k. my earnings that year peaked at an all-time high of £24k.

Was 2grand worth doing an extra 40grands worth of work for.
Not on your life. And thats just how he will feel after stretching to 'make just a few thousand more a year' so you can have that slightly bigger mortgage!

Don't try to stretch to get the biggest one you think you can afford.
Rather, get one that you can happily pay each month without having to worry.
28 days is the longest time of your life when the big job you had booked pulls out and you still have to make the repayments!

Lenders don't do it for fun, there really is a reason why they lend the self-employed less.