Best mortgage for these slightly unusual circumstances?

zawizr

Hi all,

Wondering if anyone can offer advice on the degree of difficulty for myself (A) and my partner (B) to obtain a mortgage. We have a somewhat unusual set of circumstances:

A’s circumstances:
- Currently one of four directors of a limited company, limited company was founded July 2011, venture-capital funded and employing 30 staff, turnover for July 2011 to July 2012 of perhaps around £2m, business is loss-making in same timeframe
- Own (fully diluted) 14.12% of this company. No dividends are paid.
- Permanently employed at a salary of £60K by this company
- Previously permanently employed at £109K in same industry
- First-time buyer
- No debts, no credit card balances (one credit card fully paid each month)

B’s circumstances:
- Permanently employed at £85K by a limited company. Owns <1% of that business.
- Salary was raised to £85K from £45K in July, following acquisition of employer.
- £6700 outstanding on a car loan, paid as £221 / month
- £8000 outstanding balance on one credit card £80 / Month
- ~£10k personal loan ~£465/month
- 2 other credit cards without balances
- Owns a property that has no mortgage (paid off around 2 years ago) and has a tenant. No income from the property.

We are looking for a 90% loan on a property worth around £390K. We currently pay £1800 / month in rent.

Who should we approach as likely lenders? Both HSBC and First Direct have turned us down. Should we expect that no-one will want to lend, given our circumstances?

Many thanks for any tips!

Wh05apk

The lender will base their lending on App b's income, what do you mean by " Salary was raised to £85K from £45K in July, following acquisition of employer" ?

If they base lending on her £85k less loans of £221+£465+ 3% of £8,000 = £240 they could lend upto about £350k, however you may wish to raise some funds on the existing property, reducing your residential borrowing to a lower LTV providing much better rates.

zawizr

Wh05apk wrote: »

The lender will base their lending on App b's income, what do you mean by " Salary was raised to £85K from £45K in July, following acquisition of employer" ?

I don't quite understand why A's salary would not be included -- most guidelines I have seen say that you must own at least 20% of a company to be considered self-employed. Does that vary by lender? Or am I missing something?

What I mean by B's salary was raised: B was employed by a company at a salary of £45. This company was acquired by a second company in June, and the second company (now B's employer) raised B's salary to £85 as a result of the acquisition.

Many thanks for your help!

somethingcorporate

May need 3 months payslips at the higher income but given that is only a couple of weeks away it probably won't delay anything significant.

Wh05apk

Sorry mis-read your post at 14.1% you should be ok with most lenders.