Self Employed and struggling to get a mortgage

stamford1601

I currently have a mortgage with Halifax. Wierd situation really, we live in a house which has an annexe attached where my parents live.. They now want to retire and move away which means we can't afford to buy them out and need to sell and move on etc.

House is sold stc and we were approved for a mortgage in principal so we put an offer in on a house which was accepted. Contacted my broker and gave them the details of the new property and to my utter horror we've been turned down. !!

My wife and I earn a decent wage but because my business doesn't look good on paper albeit we've made a profit for the last 3 years, Santander have called by business insolvent and won't lend.

So now I'm stuck with my parents breathing down my neck and I dont know what my next move is.. I have contacted a company that specialises in self employed and I hope to receive an answer by the end of today but I'm worried sick that I'm going to end up in rented accomodation for years and stuck in a rut.

I have a basic salary of £9500 but also draw a dividend of £28,000 and my wife has 2 jobs where she earns £14,000

We will have £225k as a deposit and want to borrow £220k

Any advice would be greatly appreciated

Thanks

Dave_Ham

This will be tight, but I would expect achievable subject to the detail of your case.

I would expect the broker you have on this, will try and find a solution so please do not panic...

opinions4u

What net profit is showing for the last three years of trading?

What have you withdrawn from the business each year in salary and dividend?

Please itemise.

stamford1601

I clear take home £650 a week

2011 Net Profit of £17k
2012 Net Profit of £21k
2013 Net Profit of £40k

stamford1601

Dave_Ham wrote: »

This will be tight, but I would expect achievable subject to the detail of your case.

I would expect the broker you have on this, will try and find a solution so please do not panic...

Trouble is I am panicking as she now says that Barclays also have concerns over my company accounts :mad:

GMS

You say your business doesn't look good on paper. What is the issue?

For another lender to be concerned there is obviously a problem.

Dave_Ham

It is unusual for a couple of lenders to have an issue, although I would still fancy a solution..

Are you declaring losses each year?

stamford1601

I have £27k showing in assets and £97k showing in liabilites as I have a directors account which is what the conpany owes the directors etc

stamford1601

Dave_Ham wrote: »

It is unusual for a couple of lenders to have an issue, although I would still fancy a solution..

Are you declaring losses each year?

No.. Wish I was as I'm fed up paying Corporation tax year in year out :rotfl:

stamford1601

stamford1601 wrote: »

No.. Wish I was as I'm fed up paying Corporation tax year in year out :rotfl:

Shouldn't laugh as I'm not really in a jolly mood at present

stamford1601

I now have 3 independant brokers looking at this so i just hope by tomorrow at the very latest i can get a positive answer