Chances Of Getting A Mortgage?

samaudio

Could anyone give me an idea of whether or not it's likely I could get the following mortgage:

I would like to buy a flat for around £240,000
I have a deposit of £80,000, so would need to borrow £160,000
I work freelance. My last three years profits have been: £25,000, £20,000, £17,800.

My partner currently earns a very small amount and will be giving birth soon so will only be receiving state maternity allowance.

Is it a possibility or am I dreaming?!
Any views would be greatly appreciated.

maninthestreet

So you need to borrow over 6 times your gross income???

Thrugelmir

samaudio wrote: »

Is it a possibility or am I dreaming?!

Downsize your ambitions.

Or work harder.

Dave_Ham

Possible, rather than probable and will depend upon the detailed information.

You are likely to require a broker.

Good luck

samaudio

I see... Thanks for your advice everyone.
So can I plan to borrow maybe 3 to 4 times my income: £75,000 - £100,000?

Dave_Ham

Not at all; you can potentially borrow 5 times income and depending on credit score sometimes upto 6 times but that is why I said detail is important.

Also, you may be able to include some of partner's income

In the details, you have quoted net profit and some banks will take a different view and not necessarily net profit which may stand you in a better position of being able to afford what you want/need to lending wise.

Hence, my recommendation to get a broker on the case as unlikely anyone will get enough detail from a public forum to give you specifics and details...

All the best

kingstreet

As your income is reducing, the best you can hope for is a lender which will take an average of your last three years' net profit, that's £20,900.

Before multiplying, you need to deduct the cost of any ongoing credit commitments and dependents. Use lenders' online affordability calculators to gauge what's possible.

Dave_Ham

kingstreet wrote: »

As your income is reducing, the best you can hope for is a lender which will take an average of your last three years' net profit, that's £20,900.

Before multiplying, you need to deduct the cost of any ongoing credit commitments and dependents. Use lenders' online affordability calculators to gauge what's possible.

Sorry I read that OP would put most recent first, if that is not the case then my post is dramatically different as lenders hate reducing profit...

OP - please clarify

kingstreet

Fair point, Dave.

Your glass is obviously half full this morning.

Dave_Ham

kingstreet wrote: »

Fair point, Dave.

Your glass is obviously half full this morning.

Always... although it may soon be half empty if the OP has been put in chronological order...

samaudio

Thankfully it's the other way round (!) - my profits are increasing. Nearer 30,000 this tax year.