Can I get a mortgage?

Yorkshire_Ollie

Hello all,

I'm looking for some advice on whether I'm likely to be able to get a mortgage.

I'm self employed earning £22,000 a year (3 years accounts)

My fiancee is part time/self employed with a permanent contract where she works part time. Part time wage is £10,000 and self employed is £4,000.

We have a deposit of £35,000 ready.

She has a good credit score but I unfortunately have a default notice issued when I was made redundant in 2009 which is settled.

I could really do with some honest advice whether I'm likely to be able to get a mortgage, i feel I'm holding my fiancee back as she doesn't have any debt issues. All we want is somewhere to live and start a family, the house value we are looking at is £120,000.

Any help, advice or past experiences would be greatly appreciated.

bigadaj

Should be fine, how much was the default for?

You sound a bit nervous so might be an idea to use a broker, ask around family and friends for recommendations.

ACG

I agree, you will be able to get a mortgage. I would probably go via a broker anyway for this as not all lenders will accept you with the default - most probably will, but i would use one just to make sure you dont choose the wrong lender.

But i wouldnt worry about getting a mortgage if thats the only issue.

Yorkshire_Ollie

Thank you for your thoughts.

All we think about is getting a home together so it does make us quite upset the idea of not been able to (for a while anyway) we work very very hard so feel we deserve one! ha.

The main issue is my partner, she doesn't want my bad credit history to effect her. Her mother is very "involved" and is feeding her incorrect information as I'm sure that wouldn't happen as its my default not hers.

The default was for £2,500 which was placed in 2009 and settled in 2010.

I want to go to a broker but my partner thinks we don't need one, but now I have some advice backing me up I will suggest it with a bit more confidence.

kingstreet

What was your net profit for the last three years?

ACG

I would'nt say you need a broker, but with all the work needed - both finding rates and checking criteria, its probably worth speaking to one.

Yorkshire_Ollie

Now that's the other issue I forgot about, does Net profit for my business include my wages?

GMS

Are you a sole trader or limited company?

Yorkshire_Ollie

Sole trader

GMS

Net profit will be turnover less allowable expenses.

What are the last 3 years figures? Any declining years?

Some lenders will take an average of 3 years, some average of last 2 and others latest only.

Yorkshire_Ollie

First year was start up year so was £8,000.
Second year was £15,000.
Third year was £22,000.
Fourth year is expected to be around £26,000.