Help needed, clueless FTB.

ClaireLM_2

Hello!

Can anyone offer me any advice please?

I am 38yrs old, divorced and self employed carer needing to secure a mortgage of about £50k if possible.

I am currently selling my marital home (OIEO £300k) and need to pay my ex husband £40k and clear the mortgage (his sole name) of c. £117k, the remains are for me to use to buy another home. I am currently paying half of the mortage which is £304.11 pcm.

I have only 18 months of self employed history behind me, working for only one company, work is consistent and I could be taken on as an employee but my accountant advised me not to as I am better off self employed.

I earn just over £1k per month gross, in addition I get tax credits of £190 per week (for my 13 year old daughter and my partners 14 year old daughter,) also, £134 pcm child benefit and currently £100 child support from my ex, should rise in September to c. £300, all in all about £22k per year gross.

I have never had a mortgage and Experian rates me as a "fair" credit risk, mostly due to the fact that I am using 90% of my available credit, I have one missed payment in the past year. I would like to clear these debts when I move.

I should have a deposit of between £100k and £130k but need to top up with a mortgage of about £50k.

What are my chances of being able to get a mortgage, will the large deposit be much of a help, and am I classed as a FTB or not? Where do I start, has anyone got any advice at all please?

Thank you!

Claire

GMS

Many lenders would need 2 years plus accounts. However your deposit could help access more flexible lenders.

May be worth a chat with a broker.

ACG

I agree with GMS, its a case of finding a lender who will accept 1 years accounts or 1 years and a projection and the tax credits.

I think this will be possible but it would be a good shout to speak to a broker otherwise you could end up spending a long long time on this.

ClaireLM_2

Thank you for your answers...I can submit my accounts next month, which will give me two tax returns which may help? Should I try to find a broker now or wait until I've got a buyer for my house, therefore buying me extra time?

Crashandburn

ClaireLM wrote: »

Thank you for your answers...I can submit my accounts next month, which will give me two tax returns which may help? Should I try to find a broker now or wait until I've got a buyer for my house, therefore buying me extra time?

I would submit the accounts as soon as the tax year ends and then order the SA302 tax statements from HMRC. As we are only say 2 weeks away from the year end, I would possible wait till then before finding a broker. If going to the broker with 2 years defined income, it will be so much easier than not knowing your current income levels.........for the broker and you!!

You'll want to be contacting HMRC also to amend your tax credits in light of whatever income you have declared on the tax return ie bigger the profit, the less tax credits you will receive.

You'll have to check what agreement is in place for the money from your Ex. Unless it's a court order, some won't include it.

Might also be worth a chat with your existing lender as you have a proven history with them, as well as the option of keeping your existing deal if its a good one.

ClaireLM_2

Thanks!

That's a lot to be going on with, thanks for the advice I'll start working my way through asap.

Current mortgage is in ex's name only, I pay half since he moved out but I don't think the mortgage company are aware, well, I've never told them, don't know any of the details either other than it's with Nationwide. I think that Nationwide have stopped dealing through brokers haven't they?

I don't know if it helps, but I have monthly pay statements going back 18 months from my work? Also, would it be useful to swap to "employed" at this late stage? Would that help? I don't really want to as I am happy with the self employed status, once the accountant waves her magic wand I am better off than I would be if employed by the same company doing the same job.

Is there anything else I should be doing to help my chances of getting a mortgage? I already have the house up for sale, hoping that it doesn't fly off the shelves overnight, but once there's a buyer I really am going to be stuck unless I can get a mortgage so need to do anything that I can to improve my chances.

Thank you so much for all the good advice, I really do appreciate it.

ClaireLM_2

...Ex's contributions are arranged via CSA at the moment, he is a trainee teacher hence the low amount, but if successful should commence work in September as a qualified teacher so I'll have to ask for another assessment then. Does the CSA assessment count towards income I can declare for mortgage purposes?