Any chance of Getting this Mortgage?

delirious

Hi all,

Can someone please advise whether we have any chance of getting a mortgage with the following info:

House price: £189,000
Deposit: £47,250
LTV: 75%

My income: £20,700 (recent annual pay rise from £18,000)
My annual bonus: £5,500
Wife's income: £18,000

Credit reports
No defaults or CCJ's, etc but have a few sporadic late payments as follows (all status '1'):

My Credit File
British Gas: August 2012 & December 2011
Very: September 2013

Wife's Credit File
Capital One: September 2012
Aqua Card: January 2013
Car Finance: June 2013
British Gas: August 2012 & December 2011

Any advice would be hugely appreciated

ACG

Should be fine, there may be the off lender who you may not pass scoring with but in the main i think you will be fine.

delirious

Thanks ACG. Will it be an issue if my wife's income has recently increased from £500/month to £1500/month (working for a ltd co owned by me).

My wage isn't from the ltd co.

chanz4

think they may query it, if a new ltd

delirious

chanz4 wrote: »

think they may query it, if a new ltd

The LTD Co is 14 months old no not exactly 'new'. Reason for the increase in pay is she used to work part time and now she works full time.

ACG

delirious wrote: »

Thanks ACG. Will it be an issue if my wife's income has recently increased from £500/month to £1500/month (working for a ltd co owned by me).

My wage isn't from the ltd co.

How recently? Might look a little bit dubious that your wifes income has been increased just in time for you to get a mortgage.

Again, i would not say it will be a deal breaker but explain it to the underwriters before submitting an application.

One of the questions may be does a family member own more than 25% of the company you work for, so it could potentially come out in the wash.

delirious

ACG wrote: »

How recently? Might look a little bit dubious that your wifes income has been increased just in time for you to get a mortgage.

Again, i would not say it will be a deal breaker but explain it to the underwriters before submitting an application.

One of the questions may be does a family member own more than 25% of the company you work for, so it could potentially come out in the wash.

Thanks ACG.

My wife's income increased in September, so quite recently, but as I said, it's due to her going from part time to full time.

My income is completely separate as I'm employed full time by another company, but I am the sole director of the company my wife works for.

ACG

I dont think getting a mortgage will be a major problem, but i think you need to either speak to the underwriters before making an application or speak to a broker.

Some lenders may have an issue with the setup. Its kind of like your trying to avoid having to give 2-3 years accounts by putting the business in your name and employing her rather than it being in her name.

I would definitely make sure the lender is aware of the situation before making any applications.

ethank

Has your business put in accounts to companies house as yet? Are you able to demonstrate it has sufficient turnover to afford her wages?

delirious

ACG wrote: »

I dont think getting a mortgage will be a major problem, but i think you need to either speak to the underwriters before making an application or speak to a broker.

Some lenders may have an issue with the setup. Its kind of like your trying to avoid having to give 2-3 years accounts by putting the business in your name and employing her rather than it being in her name.

I would definitely make sure the lender is aware of the situation before making any applications.

Thanks again ACG, I think I will leave it to our mortgage advisor as I'm sure she'll know what the best route is.

I understand what you're saying about it seeming like I'm trying to avoid giving 2-3 years of accounts but that's honestly not the case.

ethank wrote: »

Has your business put in accounts to companies house as yet? Are you able to demonstrate it has sufficient turnover to afford her wages?

Thanks ethanks. The company hasn't yet submitted accounts to companies house as the year end was 22nd November so accounts aren't due for quite a while yet. The company is currently making 5 x my wifes salery but at the same time, I don't see why I should need to demonstrate that - my employer won't need to do that for my wage.

ACG

delirious wrote: »

I don't see why I should need to demonstrate that - my employer won't need to do that for my wage.

Your employer is not owned by you, your wife or a close family member - thats the difference.

If the company was owned by your wife it would have to show between 1-3 years accounts (depending on the lender). So any lender is going to question whether this is a ploy to get round that or not, you say not but a lender doesnt know you from adam so its a case of trying to overcome that.