Help - Can I get a mortgage?

Athravan

I don't think I can get a mortgage anywhere but if anyone could advise I was told you guys would know

Basically I have been renting for several years @ £600 pcm. I have now been told by my landlord that he is selling up. He will accept a first offer from me on the property if I want it (it'll be 210k).. or I can move out in the next 2 months (great). Problem is I have 2 dogs, and hard to find sympathetic landlords even though I can provide references saying the dogs have never created any problems and pay a large bond.

Anyway.. I have basically no job history as such. This is my first job... I run my own business. I own a retail shop. I don't make a lot of money, but certainly enough to cover my rent and bills. We only set up 4 months ago though so I can't provide a very good set of accounts as we've been trading under a year - had large setup costs and of course are still getting our name known. I have a degree in business studies and am now 24, I went straight from my degree into my own business and only have part time retail work as previous job employments (Boots, Tesco many years ago and over xmas etc.)

I don't really have any assets to speak of.. except my shop which has 20k worth of stock and equipment in it.. will this count at all?

I have some small savings of about 10k that I can put as a deposit but obviously this is only about 5%..

So.. can I get a mortgage? If so.. where would my best options lie?

I am confident about repaying it if around 600-700pcm and I could put my business up as collateral but I don't know how much that would actually be worth!

*EssEncE*

If a lender would accept your application, you'd be looking at more around £1,300+ p/m repayment and thats on a 30 year term, capital repayment basis.

Your deposit doesnt help - LTV 95%.

As you say your self employed only been trading 4 months.

I personally think you would struggle as things stand with a mortgage. I would go as far as saying you've no chance, but there again, lenders are offering 10x salary lending now, but even still with these lenders they require borrowers to be on salaried income rather than self employed basis.

Keep looking at rented for now and say in 6 months time re-evaluate your situation and contact a broker. You will then have 1 years accounts behind you and that opens up for doors.

MortgageMamma

First of all, ask your landlord of you could stay until shortly before the purchasers mortgage exchanges, this will give you more time - there is no guarantee that he will sell and complete in two months and this will keep lining his pockets
Secondly, if you are going to get a mortgage, i think you need to set your sights a little lower than 210k. You don't say what your income is so I am unable to confirm how much your borrowing could be at this stage.
You say you have a retail shop - does that not have a flat above it that could be used?
I have two dogs and rent my property. We thought when we decided to move from our old house we'd have a nightmare finding somewhere with dogs but it was not the case. you may have to pay a larger bond and agree to have all upholstery professionally cleaned before you go though.
Another option you coudl consider if property is expensive in your area is shared ownership, although if you really do have to be out of your existing property in 2 months its unwise to apply for this as its a lengthy process

Athravan

I think you're both probably right.. I could possibly borrow some money to make up 10 or even 20% of the price from my parents but I'd rather not have to. The landlord has said the house is going up for sale on 1st july and I can stay until it sells, but if this is the week it goes up for sale, then I have to be out a month after that. The uncertainty is a bit of a pain to be honest.

I am looking at rentals, but I live in Cardiff and the property prices here are ridiculous. 210k is the value of the house i am currently renting @ 600pcm, and it is only a small 2 bedroom. There's no way I could afford anything higher than 750 a month repayment this year, although things may change for the better in the few years.

The shop does have a flat above but already rented.. I will keep looking at the rental market I suppose. I am sure I will be in a better position to show evidence of my income in a years time or so.... just exploring my options for a mortgage right now, but realistically I suppose it's not looking as if it is an option at all.

MortgageMamma

I have clients who have just bought a 2 bed new build in cardiff for 123,000
What would you say your net monthly income is?

liz105

£650 per month would be your repayments if you were to borrow around £120k I think

JoeK_3

liz105 wrote: »

£650 per month would be your repayments if you were to borrow around £120k I think

A £120,000 @ 6% = £600 pm interest only

JoeK

liz105

Cheers JoeK, not a bad guess then. Scary if thats only interest only too!