Advice really needed

che99

We are currently trying to get a mortgage for a self build project. We need £150,000.00. We are running out of places to try. We have limited savings. We are being turned down becuase my husband has been self employed for less than a year. We can afford the repayments but can not show earnings. We have tried a self-cert mortgage which will work out but only in 5 months when he has been self employed for a full year. By then the land would of sold. Any advice would be greatly received.

Thanks

Che99

JoeK_3

che99 wrote: »

We are currently trying to get a mortgage for a self build project. We need £150,000.00. We are running out of places to try. We have limited savings. We are being turned down becuase my husband has been self employed for less than a year. We can afford the repayments but can not show earnings. We have tried a self-cert mortgage which will work out but only in 5 months when he has been self employed for a full year. By then the land would of sold. Any advice would be greatly received.

Thanks

Che99

You need a whole of market mortgage adviser, as some lenders will accept self employed people with a minimum of three months trading record.

What deposit do you have?

JoeK

che99

We have £20K but would want to borrow as much as possible rather than use all the deposit, so that we can have some cash to go on with instead of waiting for stage payments to be made.

herbiesjp

There are lenders that do self cert mortgage from day 1 of self employment

Which lenders have you approached?

Are you buying land or an actual property?

JoeK_3

che99 wrote: »

We have £20K but would want to borrow as much as possible rather than use all the deposit, so that we can have some cash to go on with instead of waiting for stage payments to be made.

Lenders will normally lend up to 95% loan to value and based on your £20,000 you could borrow up to £200,000 depending on your income and the profits generated by your self employed status.

And this is the challenge!

How much will be generated from the self employed status?

I am however concerned that you appear to be under capitalised as stamp duty alone will cost £20,000.

Are you ready for this financially? From the information supplied, I don't think so!

JoeK

che99

We want to buy the plot which has come up for sale, but need to move fast. The plot is £65K which is what we really need to find a way to get a mortgage on at the moment, if it is easier than getting the full build finance sorted out right now. We've approached Buildstore and three brokers, but I don't know which lenders they use. They all said that after 12 months trading, no problem, but until then they can't do it. Any ideas who we can contact to get any further?

che99

We have £20K we could use as a lump sum deposit now. Earnings are expected £45K pa, hopefully growing next year.

JoeK_3

che99 wrote: »

We have £20K we could use as a lump sum deposit now. Earnings are expected £45K pa, hopefully growing next year.

There could be a number of ways to tackle this but before we move on.

Do you have any property at the moment and if so, what value and is it mortgaged?

JoeK

che99

No, we sold our house last year, and moved in temporarily with in-laws. Then without the mortgage burden we decided he should start his own business. Now we need to be looking for a place of our own again.

JoeK_3

OK, I think you should proceed with a self certification flexible self build mortgage. You should be aware that there are whole of market mortgage advisers (with no restrictions) and mortgage advisers that arrange mortgages from a panel of lenders.

Your previous experience should not deter you from applying again though a whole of market mortgage broker.

JoeK

che99

Thanks Joe
Do you have any suggestions as to where I can find a good whole of market broker, or is it just a case of looking in the yellow pages?