New Mortgage - not sure what to do/what we can get....

purplemagpie

Hiya, I'm just looking for a bit of advice please, if possible.
We just can't decide what to do and don't know if we'll be able to get another mortgage and if so, how much for.....

We are currently stuck in a small flat which has been for sale for 2 years and no sign of getting sold any time soon. We were thinking of letting it out (we don't want to, but might be our only option). Will it be easy to get a second mortgage to buy another property?

I am self employed. Over the past 3 years I made; £12k, £14k, then a lot less last year because I was on maternity leave for half of it. Would the lender take this into consideration? This year it looks like I will make around £18k, but as I haven't filed a tax return for this yet, would we need to wait until April to get another mortgage so the lender knows we are making money again? My partner has just started working for himself and has accounts for just 1 year (only around £5k).

We have £11,000 saved for a deposit.

So we just don't know whether to let out the flat and move on or just wait until it sells. Either way we aren't making much money, and we're self employed, so I don't even know if we can get another mortgage!

Any advice would be greatly appreciated as I don't have a clue about mortgages. I hope this all makes sense, thanks in advance :-)

Dave_Ham

Hi,

Will require a bit more information before anyone can give you useful information.

What is your current mortgage value and current approx. valuation?

How much would you want to buy for, ideally?

Someone should be able to give you a better idea with that information.

amnblog

Unless you are looking at a modest mortgage requirement I do not see how this can pan out.

Lenders have a problem dealing with S/E income and 'maternity leave', and your partners limited income history would not add weight to your situation.

purplemagpie

we owe £50,000 for our current flat, which is the price it is up for sale for.

We aren't looking for a lot of money, just want to see how much we can get. £75,000 would be nice, but we will just have to find a property with whatever amount we can manage.

thanks

Dave_Ham

Then this could be achievable, but highly likely to require a broker.

May also be worth you ordering your last 3 SA302's for you and 1 for OH..

Potential, but will need to be the right lender and your credit files will need to be clean.

All the best

purplemagpie

thanks for your reply. At least there's a little bit of hope.

Yorkie1

Have you checked the long lease for your flat, to see whether you are allowed to let the flat out?

How much do you think the rental income will be on the flat?

purplemagpie

Hiya, we haven't properly looked into whether or not we can let the flat out yet, just trying to decide if it will be a good idea or not first :-)

We're currently paying £300 ish per month for the mortgage, and I would imagine we can get £350-£375 back in rent, so not a great profit, but at least it's something.