lost cause?

joel10873

i think me and OH are (on paper) the worst people ever to try and get a mortgage!

We run a Ltd company (he is a director we are 50% shareholders) so i guess that still counts us as self employed (strike one!) we were bankrupt then dischrged six months later in 2004 (strike 2!) and we have a low income with a proportion of our income coming from tax credits (strike 3!)

on the plus side we have a large deposit (50K and before you start jumping all over me it was a gift that can be supported as such in writing and not just for the purpose of house buying but for whatever i wanted to use it for)

has anybody out there in a similar situation got a sensible mortgage? the broker i spoke to said they could get around £35k mortgage which really doesnt help me!

i currently pay £525 a month rent and have paid around that for the last ten years or so. we are also debt free (as is the business)

Any help advice or other peoples stories would be appreciated

Thanks

joel10873

i should say we have a 50% shareholding each for the business

kingstreet

Is the problem getting the mortgage, or getting the amount you want?

The limited company/self-employed/bankruptcy things all become largely irrelevant if you don't actually earn enough to justify the amount you want to borrow.

What you pay in rent is also not important.

Dave_Ham

Income can be used, including Tax credits but need to know what purchase prices you are looking at, what income declared and what tax credit received?

joel10873

i know the rent i pay is irrelevent it was more there as an affordability example, that what i can afford to pay so that would be the mortgage payment i could afford, obviously mortgage payment vary hugely depending on the interest rate

im waiting for a valuation on a house but i dont belive it to be worth any more than £140k so with a 50k deposit it would be a 90k mortgage

OH income is £641 PCM
combined tax credits is 12K per annum

also get DLA for my son (dont know if that can be used? if so its £212 cpm)

company declared dividends the last two years
£1000 each last year adn £500 each the year before

i am aware we are probably stretching it a bit in the income to mortgage front but the property we are currently in is on a shared ownership scheme and if i cant purchase outright i would at least like to be able to get as much as possible

just need to know if its a complete lost cause or will be stupidly expensive

thanks for input

Dave_Ham

I certainly do not think it is a lost cause, although given the challenges you just need an experienced broker.

Obviously, be prudent to have your credit files (Experian, Equifax and Call Credit) and any lender will want to review your last 3-6 months bank statements given the variables specifically the previous bankruptcy..

Definitely worth a free chat with a broker..

Good luck

joel10873

thanks for your help