Self employed and want a new mortgage

rich1000

Hi everyone I need some advice...

I own a property worth £155 and I'm looking to buy a property for £175 and sell mine.

I've been self employed for two months and have now been refused a mortgage to buy this as I need to have at least two years of accounts to show Nationwide..

My dad is my garantor but his income alone won't cover the mortgage.

What can i do? I really want this property but how can I go about getting it if it possible?

Thanks

briggy

sorry can't help but just wanted to say when we wanted a house the bank wouldn't take my husbands income into account at all as he had only been self employed for a year, even though he earned twice as much as when he was employed.

Good luck in your search

toonfish

there are lenders that will allow you to self-certify, even if you are newly self employed providing you have sufficient equity. As you have tried Nationwide the next port of call should be your bank, you may have a pre-approved borrowing limit and after that you should look for a broker who is knowledgable in this area.

rich1000

Thanks toonfish.., If I go self certified it should go through ok? but would it be at a hire rate? Also would they need my last two months accounts?

toonfish

rich1000 wrote: »

Thanks toonfish.., If I go self certified it should go through ok? but would it be at a hire rate? Also would they need my last two months accounts?

it will still be subject to credit check/score, and the rates again will be dependant on the loan to value. There aren't many companies that will do it with just 2 months trading, and you need to ensure you are able to meet the repayments. They wouldn't usually ask for any proof of income at all.

rich1000

Thanks very much I'll make an appointment with an independant mortgage advise place on monday and try to sort something out..

I've just re read my previous message my question was: would the interest rate be higher if i was to go self certified?

JoeK_3

rich1000 wrote: »

Thanks very much I'll make an appointment with an independant mortgage advise place on monday and try to sort something out..

I've just re read my previous message my question was: would the interest rate be higher if i was to go self certified?

The answer to your question about interest rates being higher is, "maybe."

Interest rates charged by lenders reflect the risks involved in lending and the reasons for higher interest rates are governed by the loan to value ratio, adverse credit history, income/affordability etc.

A whole of market mortgage broker would take all these factors (plus others) into consideration before submitting your case to the relevant lender.

It is clear from you situation the you need to prepare a forecast of income and expenditure of your future cicumstances and a good mortgage broker would do this in all cases.

JoeK

devmcc

Hi there..
I have just got a mortgage with Standard Life - we have both been self emp for just under 1year - they were fab!!
Good luck.

bury_2

devmcc wrote: »

Hi there..
I have just got a mortgage with Standard Life - we have both been self emp for just under 1year - they were fab!!
Good luck.

I am assuming you are talking self cert?

What interest rate did you get and what was your lTV?

Im thinking that if i can get a 25% deposit I would get a beter rate.

JoeK_3

bury wrote: »

I am assuming you are talking self cert?

What interest rate did you get and what was your lTV?

Im thinking that if i can get a 25% deposit I would get a beter rate.

That is always the case.

The higher the deposit the safer the lender feels, the lower the interest rate.

JoeK

devmcc

bury wrote: »

I am assuming you are talking self cert?

What interest rate did you get and what was your lTV?

Im thinking that if i can get a 25% deposit I would get a beter rate.

I must admit LTV was 75%.. int rate is 1.8 below BOE for 2years - no tie in afterwards...