Self Cert - what can we get?

jaype

Advice needed - I think we'd be looking at a self - cert mortgage here, but I'd like to know how much we can borrow and what the rate / repayment might be. Basically, my husband earns around 27k from his full time job and I'm self employed with an income of what looks to be around 25k (gross, as a conservative estimate), working part time. In addition, we have a business that should make about 65k this year and maybe 20k next year, plus around 5k in year 3. Only started it recently so we don't have accounts. Likewise I've only been in business a year. Many thanks, any mortgage advisors please feel free to contact me also!

jaype

I forgot to mention - we are fisrt time buyers, if that makes a difference?

tomstickland

In addition, we have a business that should make about 65k this year and maybe 20k next year, plus around 5k in year 3.

Why is it making less each year? You are expecting to make money from the business, but how many start ups go under? It'd be risky to borrow for a house on expected profits.

MortgageMamma

can you give more information about your business that will make 65k this year, 20k year after and 5k in year three?

herbiesjp

Have you got accounts for your £25k? HOw many years worth of accounts do you have?

How much are you looking to borrow? What deposit do you have?

jaype

Sorry I ddidn't respond - been away, but thanks for the replies. Okay - we have a 40k deposit already. The business isn't like a 'normal' one - my OH has designed some computer software and is selling it, so the decline is profits is because all those wanting it will have bought it. It won't go under as it has no outlays / premises and so forth. However, after year 3 (conservative estimate) version 2 will be released, so though this won't sell for as much as the first, it will still probably make another 25k, then 10k then 5k in years 4,5 and 6, if you see what I mean. I'm just being conservative with the figures as he has some other ideas for products, but it all depends on him having time to write them. I don't yet have any accounts for my self employment as it started in July last year. First lot being put together over the summer by my accountant... The homes we are looking at will probably be around 260 - 300k. We'd like to know about both a repayment and IO mortgage as with an IO we could feasibly then pay off a chunk every couple of years if re-mortgaging without the pressure of massive monthly repayments that HAD to be made regardless of whether payments for work to me were late.

MortgageMamma

Ok so self employed, unable to proove income and only been doing it since last july - this is going to restrict the amount of lenders willing to look at this

without knowing your circumstances in full I could not possibly comment on a deal, buy most lenders want to see 12 months trading before they will lend even on a self cert which is what is restricting your options

herbiesjp

Is this in addition to the £25k and £27k?

There are ahandful of lenders that may be able to take self employed incoem from day1 - but you would need to have a really good idea as to your income to consider that option

jaype

The business income is indeed in addition to the 25 and 27k. Looks like I'll have to hold off until after my first year of trading is up in July?

MortgageMamma

No not at all, there are companies who will look at it, probably 5 of them, and IMO the products of some are pretty competitive

herbiesjp

jaype wrote: »

The business income is indeed in addition to the 25 and 27k. Looks like I'll have to hold off until after my first year of trading is up in July?

You already have 52k income which you can verify

So you may be able to get standard rates with some lenders, who are happy to be more flexible beacuse of the deposit you are putting down

HTH