Problems Getting A Mortgage

kelly212

My husband and i currently rent, but have found a property and fell in love with it.

The estate agent said that if we used their mortgage advisor they would swing it for us and our offer was accepted

The house costs £184000, and we have a 5% deposit of £9200

My husband has just started a new job and earns approx -£32000 at his starting rate and in 8 weeks his salery will increase to £34000.

Our problem is that i am self employed, i run my own business which hardly makes a profit, the business is 3 years old and we had a start up grant enabling the business to open and my net taxable profits have been:

04/05 £9000
05/06 -£5000
06/07- £1000

The business runs well but as you can see after expenses we really don't make much money.

I also have a ccj which is satisfied but still there

and we have child benefit of -£1449.00 per year

We were waiting for my accountant to sort my books before the mortgage was accepted but i think we'll have no chance as the company their broker used was the Chlesea who are really difficult apparently.


PLEASE ADVISE ME ON WHAT I CAN DO I REALLY DONT WANT TO LOSE THIS HOUSE!!!!

herbiesjp

There may be a handful of lenders that could look at this for you, however you are looking at high income multiples, along with the fact that your business NET profit has been decreasing over the last 3 years

How old is the CCJ and how much was it for?

kelly212

ccj = 338, 2 yrs old

decrease due to a grant i initially recieved to set up making my profit high in 1st yr

wot r my chances and do u know any lenders i should try?

herbiesjp

The CCJ amount is not too bad then, and it is satisfied

You have an income of £34,449 including child benefits and your £1k net profit

Is your husband on some kind of probationary period?
Do you have any other debts in the background?

This will be a long stretch, and so any advice or recommendations would need to be based entirely on your current personal circumstances, which cannot take place on a discussion forum like this

kelly212

He's got 2 jobs, Yes he is on probationary period until mid august for his 1st job he also has 22hrs overtime guarunteed taking income up to £38000
and second job is approx £6000 per year


we have 4 credit cards

1=£2300 @ £46 pcm
1=£300@£40 pcm
1=£100@£10 pcm
1=£900@ £45 pcm

plus a car on HP with £4200 outstanding @£209 pcm

herbiesjp

This really does need more in depth professional advice

Although your husbands income is now £44k (which helps your affordability) - you also have these debts in the background

There may be some high street lenders that could agree this for you on standard rates, but I cant emphasise enough the need for more detailed professional advice

Chelsea may do it, or cascade you on to one of their sub prime deals - although the debts make you fall outside of their income multiples

kelly212

we have an update

We have sought advise from another broker, who says he can get us a mortgage at rate of 6.39, over 25 years, but he's gonna charge us an arrangement fee of £595

surely we could find this product and apply ourselves directly couldn't we??

would someone please advise??

herbiesjp

Or find a fee free whole of market adviser

kelly212

Many Thanks
do you have any reccomendations??

stuart30

Not sure if this will be of help but when my wife and i bought our first house due to are incomes not being enough to do the standard 3 x or 4 x multiples Northern rock allowed us to have part mortgage part unsecured loan this allowed us to borrow exactly what we needed.

JoeK_3

kelly212 wrote: »

we have an update

We have sought advise from another broker, who says he can get us a mortgage at rate of 6.39, over 25 years, but he's gonna charge us an arrangement fee of £595

surely we could find this product and apply ourselves directly couldn't we??

would someone please advise??

You could certainly try and do this yourself but the more times that you get turned down, the more problems you could have in the future.

A good mortgage broker will submit you details in principal to the best lender that suits your circumstances before actually submitting the actual application form.

Go ahead and try it yourself, if you feel comfortable.

JoeK