Re-mortgaging help please

charlieandsweep

Hi, myself and my husband want to re-mortgage our home to do some home improvements. My husband is on a good salary of £40k plus, works full-time in a salary-paid job and runs his own company which turned over around £15k last year.
I'm self-employed and working part-time, and have been doing this for only 5 months. Before this I was employed but I was made redundant. I know that they are unable to take my part-time earnings into account as its been less than 2 years.


My husband is looking to make me an employee of his company, so I can do his marketing/customer services for him. Therefore, I was wondering if the lender would take this into consideration when deciding if we can borrow more money? If so, how many months worth of salary would I have to prove? This is a bit of a minefield to me, and any help would be appreciated! Thank you.

charlieandsweep

Sorry I guess it would be helpful saying that our mortgage is about £120k and we want to borrow and extra £30k, and we've been overpaying the mortgage for about 6 months now. I don't know if this information helps or not.

amnblog

Sounds unlikely your income will be considered.

Speak to a good broker to see if there are any angles.

charlieandsweep

Thank you for your help amnblog.


Can I ask though why it is unlikely that it will not be considered? Is it because it is my husband's company? I will be getting a regular salary and a legally binding contract will be drawn up, I'll also get a wage slip, just like if I were to work for any other company.


Thanks

amnblog

It is not anther company - it is owned by your husband.

If he is making £15K, presumably your' income' has to come out of that.

With no track record of your working there it will be an issue.

Speak to a good broker.

kingstreet

What do you need to borrow?

Won't his salary cover it?

Use lender affordability calculators to gauge what's possible based on your circumstances. Start off with just his salary and see what that gives.

It's possible you don't need any of the other more problematic income.

charlieandsweep

Ok thank you both for your help.


Kingstreet - I don't think on his salary alone it would cover the increase, but perhaps I am getting ahead of myself. Thanks I'll have a look at the calculators.