first time mortgage advice please!!

collymore18

Hi everyone, looking for some mortgage advice, I am looking to get a mortgage over the next few months with my partner. I am a self employed driving instructor earning around 24000 a year before tax and she is employed as a pharmacy dispencing technician.

I am aware that as I am self employed, I need at least 2 years certified accounts from a chartered accountant, I currently have 1 year that's why I know I will have to wait at least a year. Both our credit scores are good, my partner has no debt whatsoever, she has a credit card that she pays in full each month. However I have around 3000 pound outstanding on a credit card, I do make the minimum payment each month no problem and it is 0% interest for the next 2 years.

My question is will I still be able to get a mortgage if I have the outstanding debt, taking into consideration I do make payments on time?? My partner has doubts about this and I want to put her at ease.

Please note this is presuming I have the 2 years certified accounts and a substantial deposit which my partners parents are intending to help us with?

Any advice would be great

Thanks

kingstreet

You can submit two years' accounts, SA302s or even an Accountant's Certificate in some cases.

Lenders take net profit into account. That's turnover, less expenses and capital allowances, but before personal tax allowances, tax and NI are deducted. It's the figure in box 30 on the SA form, IIRC.

The cost of your credit will be deducted from your income. The cost of £3,000 on a credit card is £150 per month, so your income will drop by £1,800 per annum and if you use a 5x income lender, it will reduce your borrowing power by £9,000.

collymore18

Many thanks kingstreet for the info, much appreciated