Mortgage Advice

soitstimetobuy

Hi

I have a limited company that I have had since 2010. I am looking to purchase a house after my divorce. I have a healthy deposit and am looking for approx £120k.

I am the only employee and 100% share holder. As you will imagine I am struggling to find a mortgage provider even though my monthly income is over £2.5k.

They all say that they want 3 years accounts, which to be honest due to my divorce arent that great even though the company is doing just fine.

I have been looking at options and am stuck. I have searched for self cert style mortgages (I understand they are no longer available so I have no idea what a self cert style mortgage is) where companies advertise "Guarantee Mortgage Acceptance" but i dont want to be locked in with a silly rate.

I can continue to save and in a few years get a 5 year loan for £30k and buy one outright with savings - but I am renting at the moment and its just dead money.

I have £8k car loan (which I can pay off) no credit cards (all paid off) and no loans. I have an excellent credit rating (experian) and have never had any problems with debt etc in the past.

Just really stuck and would really value some advice. Kids want to move as do I and I am just a bit frustrated.

A friend said to transfer the shares of the business to someone and i become an employee (its not registered at my house) and apply for a mortgage on my wage, but I dont want to do anything dodgy as it will only come back and bite me knowing my luck!

Many thanks

Thrugelmir

soitstimetobuy wrote: »

They all say that they want 3 years accounts, which to be honest due to my divorce arent that great even though the company is doing just fine.

That's a contradictory statement. As you are the Company. Has your income been falling?

csgohan4

It will depend largely on your SA302, it won't matter to a lesser degree if your net profits are not much. But if you been drawing a modest 'consistant' salary and/or dividends you might be able to get a reasonable mortgage.


However having a loan or unpaid finance will not look desirable as it's all about affordability now rather than your gross.


Mortgage brokers would be the best option for you. As with the standard reduce your outgoings 3 months before application.

kingstreet

There are lenders who accept one year's or two years' trading so you don't have to have three years.

Speak to an independent broker who will be able to get you the deal which best suits your circumstances.

kingstreet

csgohan4 wrote: »

It will depend largely on your SA302, it won't matter to a lesser degree if your net profits are not much. But if you been drawing a modest 'consistant' salary and/or dividends you might be able to get a reasonable mortgage.


However having a loan or unpaid finance will not look desirable as it's all about affordability now rather than your gross.


Mortgage brokers would be the best option for you. As with the standard reduce your outgoings 3 months before application.

The SA302s will confirm the salary/director's remuneration and dividends. That will be how the OP evidences his income in most cases.

Reduce your outgoings three months before application? You seem to have latched on to the media twaddle post MMR this time last year to eat only beans on toast for three months.

The bulk of the lenders in this country take ONS averages for normal outgoings and only include in affordability specific items such as dependents, childcare, credit, student loans, maintenance and ground rent & service charges.

Those who want a full break-down of spending, have systems which over-ride the figures which have been entered if they are below the ONS averages.

Hence, starving to death may have absolutely no impact on a mortgage application.

csgohan4

kingstreet wrote: »

The bulk of the lenders in this country take ONS averages for normal outgoings and only include in affordability specific items such as dependents, childcare, credit, student loans, maintenance and ground rent & service charges.

Those who want a full break-down of spending, have systems which over-ride the figures which have been entered if they are below the ONS averages.

Hence, starving to death may have absolutely no impact on a mortgage application.

That's a shame, I was hoping to get a mortgage when I on my death bed