Remortgage self employed less than 1 year

PeteC79

I am employed and my wife has recently become self employed as of October last year. She is a childminder, previously a manager of a nursey having worked in child care for 13 years.

Our fix term rate is up next month and we went to our current mortgage lender (Halifax) to see if we could remortgage which would include our current £60k mortgage and an additional borrowing of £40k to consolidate debts and home improvement. The house value is £125k meaning we required a 80% mortgage. Even after having a mortgage with no missed payments for nine years both have credit ratings of 950+ they are unable to take my wifes earnings into consideration, only mine, due to her having less than two years of accounts.

We also tried at Barclays who on two occations in branch told my wife that she only needed six months of proof of earnings as she had banked with them for over 30 years. We had a meeting set up with the mortgage advisor but I decided to phone their mortgage advice line and was told this is not the case and she needs two years of accounts.

I feel like were hitting a brick wall everywhere we turn at the minute even tho my wife is now earning more than she ever did working for someone else and infact is having to turn down children as she is full.

I was wondering if anyone has any advice or been in a similar situation or know of any mortgage companies who would look into a situation we find ourselves in.

Many thanks in advance.

ACG

Less than 1 years is very difficult - although in the industry shes in with high demand it may be possible to get round it.

You could do with sitting down with a broker really as you will struggle to get this through a high street lender.

Dave_Ham

Hi - exactly as above + how much do you earn and how much are you expecting your Wife to earn for first year?

PeteC79

Thanks for the quick replys.

I earn basic £18350 with bonuses I earned just over £21k last year. My wife over the past six months has earned £11048. Her projected earnings for the first year is around £22000.

Thrugelmir

Your unsecured debts maybe an issue for both the Halifax and a new lender. As in the current financial climate lenders have to be seen to be acting responsibly.

Perhaps tackle these debts prior to taking on yet more debt for home improvements.

ACG

I do think this is possible, but it wont be easy. You could do with sitting down with a broker really to get everything down on paper and let them get doing some research.

PeteC79

'Your unsecured debts maybe an issue for both the Halifax and a new lender.'

This is not the issue. The problem is they will only take into consideration my wage due to my wife being self-employed but Thankyou for the reply.

Halifax have said I could get 60k based just on my wages but cannot take my Wifes wage into account, if they could they said we should have no problem borrowing the £100k.

Thanks ACG and Dave it looks like that will have to be our next step.

Dave_Ham

I suspect you will have to settle for slightly less than the 100k, but enough to consolidate a chunk of what is needed. You may be able to extend the term, or find a much better rate and therefore smash the remaining credit quickly.

Speculating to a degree as with the full details, this could be possible.

Best of luck