First Mortgage stress...........Help

Sara28

Hi

I am 28, married & got two children.

I drive a £45,000 car (no finance), I wear a £15,000 Watch (no finance) I have never had HP in my life...
(My husband has always worked hard to buy things out right)

"Save, save & save - I have always looked at life, that if you can't afford it, don't buy it or borrow money to buy it"

It's always worked for me so far in life......... BUT, it seems that it's doing me no good!!!!

Only last week I put an offer in on a house that would be our new family home,

The house price £170,000

My deposit £40,000 - savings

I contacted a Mortgage broker who said straight away, yes I can get you a mortgage.

We'll he lied !!

They wouldn't lend to me as I'm a sole trader, that has opened a restaurant 8 months ago, invested £250,000 into a new start up business that brings in over £10,000 a week.......

The rules state you must have two years of full accounts before they can lend...


But after speaking to my mortgage broker he said, your credit file is good, but you have no borrowing on it, so it's hard for the banks to see if your a good payer....

So I was told to apply for a credit card, so I did! And It got declined ???

So after 5 declined mortgage applications my credit file score has dropped, plus 2 credit card application declined.....

The messed up situation here is this,

I have a large deposit for the house I'm buying, 80% LTV.

I have a thriving business

I have a member of my family willing to stand guarantor on the mortgage.


What else do I need to get a mortgage .......

Thrugelmir

You'll need accounts to evidence your income. Lenders set the terms of business. Just as you do in yours.

Why not a joint application with your husband?

Sara28

But because the new business has been open for only 8 months. They won't lend.....

hcb42

Buy it in husbands name?

Wait until you have two years figures?

Sell the watches and the cars and buy it outright

Thrugelmir

Sara28 wrote: »

But because the new business has been open for only 8 months. They won't lend.....

Yes, because on the basis of 8 months figures. Lenders cannot possibly assess your ability to make 25 years / 300 months of mortgage repayments. Simply not enough track record.

Mergic

Who have you tried to get a credit card with? Some lenders are more lenient than others. Capital One springs to mind as a 'give a credit card to anyone' lender as were Lloyds TSB although that maybe not the case these days. I believe MBNA have also been more lenient.