Help me Please with Mortgage Advice

Mrs_Hendy

I hope I've posted in the right place and please help/advise if you can.
Basically I have recently separated from my husband and finances finally sorted etc. We sold our family home 12 months ago and have been renting since. I left the rented house with our children and I'm renting a smaller house but now looking to buy a home.
I am trying to get a mortgage but since March I am working p/t self employed earning only £600.00 per month, I am claiming tax credits and I have a house that we rent out (mortgage free) that we get £425.00 per month for. My maintenance allowance is £1,000 per month as we had a family business that I have not taken anything from and I also have a place in Spain (mortgage free) that earns us 4-5k per year. I have a large deposit for our new home and probably looking to borrow £140k at 50% LTV.
I went to get a mortgage 3 months ago and all was great as up until March I worked in the family business and had wage slips/bank statements to prove this. But nothing was available to buy at that time so my offer in principle has now run out of time! and I fear when I go back and tell them my change of circumstances I will be refused?
I have £2,900 income and mortgage payments would be £600-650 max per month-no loans or debts and 2 properties mortgage free but I'm not ticking the right boxes to get the mortgage?
I currently pay £850.00 per month rent.
I am thinking my only option is to sell the house we rent out although I don't want to do this as financially I don't need to but may have to in order to get a mortgage?
Hope this makes sense and please help if you can?
Thank you

DominicJ_2

From a tax perspective, owning a rental outright and having a mortgage on your house is inefficient.
Remortgage the rental and buy a house to live in outright.

Although I'm not sure you would struggle that much, depends how much you want to borrow

Mrs_Hendy

I don't think I can remortgage or get a buy to let because I'm on such a low wage?

DominicJ_2

My understanding is whether you can remortgage the rental wouldn't really depend on your wage, so much as the rent receivable.

ACG

There will certainly be options available to you, but this has the potential to become very complicated and confusing especially on a forum.

I think you really need to sit down with a broker, im presuming you do not have any accounts for the new business?
If you do not declare the income from the rented properties then this will not help your income either.

I do think this can be done but it will not be a walk in the park.