Any chance of a mortgage for self employed teacher

charlotte_rose

Hi, I am a self employed music teacher working for various music services (local authorities). This is the third year I have been been doing it and my gross is around £25k. My work expenses are £7k.

Im looking to buy a new build, 1-bed flat for around £300k (outer London).

I have a 5% deposit plus the other costs.

Do I have any chance of a mortgage and help to buy with these figures given?

kingstreet

What are your net profits for the latest two years, 12/13 & 13/14?

A flat for £300k on HTB - Equity Loan requires a mortgage of £225,000 and to be able to afford that (taking into account the notional cost of a £60,000 equity loan £150 and ground rent and service charges of another £150) you would need to be earning £50,000 a year or more.

This assumes a mortgage term of 35 years and no other credit or dependents.

somethingcorporate

I very much doubt it. With such a low income the mortgage repayments would be crippling.

You should set your sights a little lower.

charlotte_rose

kingstreet wrote: »

What are your net profits for the latest two years, 12/13 & 13/14?

17k and 18k after costs before tax.

charlotte_rose

somethingcorporate wrote: »

I very much doubt it. With such a low income the mortgage repayments would be crippling.

You should set your sights a little lower.

using an online calculator my mortgage payments would be between 25 and 40% less with a mortgage than renting

Considered full time as a music teacher from September 2015, but not sure that would change much as still on £25k.

ACG

The figures do not stack up - If you said you could borrow 5x your income your looking at a mortgage of £100k maximum, £125k if you go employed.

Interest rates are at an all time low, put in 7% interest and that closer to what you are being assessed against. You also have the costs of home ownership - leaks, breaks, maintenance, buildings insurance etc etc.