Can any mortgage advisors help me??

JoeK_3

h0ney wrote: »

JoeK wrote: »

Well we pay £600 per month rent plus bills at present (and have done for the last year). We don't spend much and draw dividends from the company as and when necessary. Our accountant told us just to pay ourselves that salary so thats what we do.

Honey, if you took out a £100,000 loan at 5.50% it would cost £621.24 per month on a 25 year repayment mortgage or £458.33 per month interest only.

How old are you?

I understand that accountants work that way to reduce your tax and NIC bill but the maximum that you could take out in dividends is the total profit of £6,000.

You incomes will be stretched!

JoeK

h0ney

Profit of £6000 was after dividends taken from business account. I suppose we are looking at interest only then! I am 28.

h0ney

plus we get tax credits and Child benefit.

I knew i should have listened more in maths class. I am terrified now.

JoeK_3

Honey, this is the time to take stock, before not after.

You need to advise your total incomes including working family tax credit.

As Mr Helpful pointed out, because of the safety of the property value and the loan size the lender will feel secure, you should consider if this is affordable.

Why do you want to remortgage the property?
Do you intend on staying there?

You could sell and buy something cheaper for cash or have a smaller mortgage that is more manageable.

JoeK

absolutebounder

Honey
That bit of adverse should be no problem. Yes there is a little income stretch but im told thats easy to get these days.

h0ney

JoeK wrote: »

Honey, this is the time to take stock, before not after.

You need to advise your total incomes including working family tax credit.

As Mr Helpful pointed out, because of the safety of the property value and the loan size the lender will feel secure, you should consider if this is affordable.

Why do you want to remortgage the property?
Do you intend on staying there?

You could sell and buy something cheaper for cash or have a smaller mortgage that is more manageable.

JoeK

Thanks Joe, I will have to dig out the tax credit stuff to check the amounts. we need to remortgage because i need to pay back my parents who have funded the renovations. We plan to live there for at least 10 years if not more. The house is also close to my folks whom I am a carer for (mum)

just checked, we get 39 per week WTC and 69.80 CB per month

Mr_helpful

I think this is relatively easy due to the low LTV. I have often had cases like this that dont look that great on paper but when discussed with an underwriter goes through without much fuss. In my opinion its how well one sells their clients to the lenders that counts in these cases. Im surprised no one has said self cert your income but there is not much need for that.

JoeK_3

h0ney wrote: »

Thanks Joe, I will have to dig out the tax credit stuff to check the amounts. we need to remortgage because i need to pay back my parents who have funded the renovations. We plan to live there for at least 10 years if not more. The house is also close to my folks whom I am a carer for (mum)

just checked, we get 39 per week WTC and 69.80 CB per month

Thanks Honey, you will receive advice from mortgage advisers that states that this can be done and yes on the face of it it can be arranged.

I am concerned that based the information that you have supplied the income stretch here is 5.2 x joint income.

If you do decide to proceed with this remortgage, may I suggest a five year fixed rate and maybe interest only during this five year period.

Does your partner have any protection against death, sickness & accident?

JoeK

h0ney

Nope no income protection. I am planning on selling my other property next year as well.

JoeK_3

Mr_helpful wrote: »

Im surprised no one has said self cert your income but there is not much need for that.

There is no other option here but it would mean telling porkies.

JoeK