It doesnt make sense?

pete28

[FONT=&quot]Dear all.[/FONT]
[FONT=&quot]I wondered if any of you have been in or are in a similar situation to me?[/FONT]
[FONT=&quot]Very briefly, I need to get a new mortgage deal on my house but my wife and I have both changed jobs in the last year and are now self-employed so have no real accounts to speak of yet. The house was purchased on a 5 year fixed deal while we both had reasonable full time jobs. This deal has come to an end and so far the lender hasn't offered any new deals, just put us on a variable rate, which is now starting to have an impact financially. We have a rental property which helped with a large percentage of the mortgage payment for a few years which is great but now we’re on variable again it has less of an impact. We don’t really want to sell the rental house as this is basically our pension.[/FONT]
[FONT=&quot]I’ve been told that mortgage companies won’t take the rental income into account (they see it as a supplementary income?) so basically we don’t earn enough on paper to get the mortgage we currently have and are paying. If we’re paying the current amount surely we can pay a lesser (deal) amount? I know this may sound like common sense…..[/FONT]
[FONT=&quot]So the question is, is there a way out of this? Anyone managed to get a deal in a similar situation?[/FONT]
[FONT=&quot]Thanks[/FONT]
[FONT=&quot]Pete[/FONT]

kingstreet

Your only option is a customer retention products from your existing lender. Ring them and ask what options they have for you.

haras_nosirrah

reason they won't take the rental income is if you have no tenant then it ceases to be an income and instead becomes a debt to pay

I had the same problem when I moved house and rented my old one out

ACG

How much is your property valued at?
how much is outstanding?

How long have you been self employed for and how much have you both earnt?

What rate are you currently paying?
I had an email last week from a company that can look to do mortgages with 6 months income for self employed. To be honest i didnt go into it too much as i didnt need to but i will try and dig the email out and find out what the rate is.

Thrugelmir

Perfect sense.

Your now both self employed and have a BTL property.

So the risk to the lender has increased considerably.

I would question if the BTL is a suitable pension vehicle if you are struggling financially.

kidmugsy

pete28 wrote: »

[FONT=&quot]
[FONT=&quot]We don’t really want to sell the rental house as this is basically our pension.[/FONT]

[FONT=&quot]Pete[/FONT]

If using the extra capital from sale of the rental house made you a more attractive customer (lower LTV) you presumably can arrange a mortgage at a distinctly lower interest rate. And that rate will be charged on a lower loan. Then you can go back into the BLT business at a later date. I can see why a lender isn't too keen on a couple running effectively three businesses, two of which are new and the other of which can prove unreliable.