Self employed, can I remortgage?

mikeopvc

Hi I've just been declined a remortgage by Halifax and just wanted to ask on here if its worth bothering with other lenders?

I'm self employed (ltd company)
We only went ltd less than 3 years ago so the Halifax mortgage lady wanted to see every years net profit/loss dating back to 2004 when I started as a sole trader.
She also had a letter from my accountant showing the last 3 years accounts as ltd with the third year being a forecast, it did show a slight increase although not that great so I would just like to get some idea of what sort of figures I need to be at to be in with a chance of remortgaging.

Here are the numbers:

Me
2011 year end £564
2012 year end £3,882
2013 year end £6,500 (forecast)

Credit card debt £17,000

Wife
Salary from permanent job with council £16,000

House value £200,000
Mortgage left to pay £128,000
Mortgage per month £807

The lady in the Halifax said she would try for a 150k remortgage which would enable us to clear the credit cards and still be paying less per month for our mortgage.

Sorry if I've missed out any information!

Any advice appreciated

Thanks

kingstreet

Your incomes would indicate a mortgage of around £90k to £100k at the most. You are simply not earning enough for the lenders' affordability calculators.

Try others online to see what the output is, but Halifax, as one of the more generous lenders is probably calling it correctly.

Having low profits, to pay less tax, is a good idea from a business point of view, but it stuffs you for a decent sized mortgage.

mikeopvc

kingstreet wrote: »

Your incomes would indicate a mortgage of around £90k to £100k at the most. You are simply not earning enough for the lenders' affordability calculators.

Try others online to see what the output is, but Halifax, as one of the more generous lenders is probably calling it correctly.

Having low profits, to pay less tax, is a good idea from a business point of view, but it stuffs you for a decent sized mortgage.

Ok thanks, any idea what I need my income to be at?
Both for 150k and 128k just to get a better deal

Thanks

Morgage_Confused

Just ask the mortgage company you are already with for their retention products to see if you can get a better rate on the original 128k. I take it you are out of any tie in period.

ACG

I work to the rule of 4x income. With the £17k debt then you may need it to be slightly higher.

Let_Us_See

A lender may take a dim view of the fact that your income (2012) to credit card debt ratio is almost x 4.5. Many would argue you are already living beyond your means.