Guarentor Mortgage

spidereyes

Bit of background

Im full time employed and good credit history (credit cards paid in full etc).
OH has been self employed for 16 months but has no credit history (no cards or anything like that).
Both FTB.

All lenders Ive seen require 2 years+ worth of accounts which is obviously an issue for us, especially as last years accounts arn't yet filed with HMRC.

Obviously the logical thing would be to wait until OH has 2 years of accounts but due to personal circumstances we really need to move asap.

We've got approx 15% deposit and should be able to borrow what we need to based on our own income.

OH's parents have said they are more than happy to act as guarantors for us, both with good credit history, they've almost paid off their mortgage and their salary's would more than be enough for us to borrow what we need anyway.

We've spoken with the co-op today but they've told us for this kind of mortgage we need to phone them to apply so need to wait until we are all together at the weekend.

My main concern is that the issue of OH's lack of accounts are still going to be an issue or would having a guarantor totally negate this fact?
Ie. if necessary Im assuming they could just base the application on my salary, and technically OH salary at 0 then take his parents salary into account to make up the amount we need to borrow?

Any advice muchly appreciated as I really dont want to be setting myself up for disappointment!

amnblog

Guarantors wont solve the lack of accounts problem.

If you have a 15% deposit and one years accounts you will have some options but will need to see a broker who specialises in the self employed.

Dave_Ham

I am a bit confused, why Co-Op?

It is likely you will be able to achieve this without guarantor help and therefore a simpler process.

Hunt down a broker with access to whole of market and so long as the one years number are sufficient, with a 15% deposit this is potentially achievable.

All the best

spidereyes

Dave_Ham wrote: »

I am a bit confused, why Co-Op?

It is likely you will be able to achieve this without guarantor help and therefore a simpler process.

Hunt down a broker with access to whole of market and so long as the one years number are sufficient, with a 15% deposit this is potentially achievable.

All the best

It was just because they seemed to be one of the only ones offering guarentor mortgages.

The issue is that although we have account for last tax year it only shows very small figures (5k turnover), whereas this tax year we're at about 11.5 and were only half way through, with a lot more work in the pipeline.
Based on my salary and OH first year of trading figures we cant borrow nearly as much as we need.

I approached my bank who although have indicated will lend to us will only give us 75% Ltv which is no good.

Dave_Ham

What is your salary and what amount are you looking for?

Can quickly confirm either way then, who do you bank with - Lloyds?

spidereyes

I'm currently on 14k but potentially this may increase to 19k in the next month or so as I've got a new job in the pipeline. Looking to borrow between 95-100k

I'm with natwest

Dave_Ham

This is borderline achievable on your current incomes.

I would have a chat with a broker to get to the bottom of the detail, save the guarantor situation..