Exploring mortgage options

gazter

My wife income, £27,000, my income Fixed contract that last four years but same company since 2008, income £4,700 pa. The renewal cycle kicks in next may.

I also have self employed income, 2012/13 £7,500 profit, 2011/12 £5,000, 2010/11 £-1,500. All verified by an accountant and the necessary information from hmrc can be provided.

We have £85,000 deposit for a house that we expect to pay £240,000 (LTV of 65%). Currently have a mortgage of £35,000 remaining with hsbc we have a history of significant over payment.

Our credit score is perfect on experian, however there was two defaults in 2009 and 2010, an unused credit card had a direct debit deactivate, same transaction a year apart, ie it was an annual debit, each getting late charges because of the DD timing out.

Spoke to the credit provider, who have promised to investigate and on the information given will probably remove the late payment flag.

There seems to be a few lenders out there who would be interested, we arent too keen on the idea of good for a few year deal, we want a good liftime tracker like we already have with hsbc.

Any suggestions? Am I likely to hit a brick wall with any particular providers?

bigadaj

Is your income correct, if its really five grand then that seems a stretch on affordability.

Sounds as though a case on which a broker can add value.

GMS

Affordability will be the issue here. Worth a chat with a broker to see what can be done or not.

gazter

bigadaj wrote: »

Is your income correct, if its really five grand then that seems a stretch on affordability.

Sounds as though a case on which a broker can add value.

Oops, maybe should have been clearer. £4,700 employment income + £7,500 self employment profit.

gazter

GMS wrote: »

Affordability will be the issue here. Worth a chat with a broker to see what can be done or not.

A bit sceptical of the broker my estate agents roped me into seeing. He didnt seem to have much of an idea as to which providers would be more sympathetic to rising self employment income etc.

By the way, should have said, we have no dependants, and my wife has student loans of £80 a month. No credit card bills, they are cleared off every month and no higher purchases.

GMS

Affordability could be an issue so being sceptical on a brokers advice is subjective. He/she may be correct. Could also be wrong but I assume they did a full fact find?

Do you have an accountant? Could they provide a references and projections?

What are your ages?

gazter

GMS wrote: »

Affordability could be an issue so being sceptical on a brokers advice is subjective. He/she may be correct. Could also be wrong but I assume they did a full fact find?

Do you have an accountant? Could they provide a references and projections?

What are your ages?

He showed us the affordability calculator either from woolwich or halifax. We had no problem with the affordability, not even close.

We are both 36. As i said, we have no debts (other than student loans) and no children.

He showed us plenty of options, but i seemed to be steering him more than him steering me. He seemed confident that we would find a lender. I have an accountant yes, but since my accounts are in, should just be able to get the hmrc sa302 forms.

gazter

Confirmation from accountant, self employed income £9,000 this year, £7,000 last year, £-1,800 year before.

hamster2013

gazter wrote: »

We have £85,000 deposit for a house that we expect to pay £240,000 (LTV of 65%). Currently have a mortgage of £35,000 remaining with hsbc we have a history of significant over payment.

is that 35k mortgage on a house you are living?
what will you do with that house ?
will you sell it to raise that 85k you are referring to as deposit ?
or do you have 85k cash + a house that has a remaining mortgage of 35k?

gazter

hamster2013 wrote: »

is that 35k mortgage on a house you are living?
what will you do with that house ?
will you sell it to raise that 85k you are referring to as deposit ?
or do you have 85k cash + a house that has a remaining mortgage of 35k?

Again, sorry for not making it clear. We will be selling the house that currently has the 35k mortgage. From that sale and some savings we have enough to put down an 85k deposit.

Simon_gloster

Rising most recent self employed year will be averaged with the previous year generally. Proof to the £ by SA302's ie declared tax is critical here.