Broker struggling to find mortgage for 1 year of accounts.

childminder87 · 13 April 2015 at 11:34AM

So a while ago I posted on here- I quit teaching to set up my own childminding business which has been running officially just a couple weeks short of 1 year. The business has really taken off, and combined with a ridiculously good one-off estate agents offer (flat fee of £500) we needed to upsize to a larger house. My current house is in my name only, I've made thousands in overpayments over the last year and have good, secure contracts with month on month growth.

We have a 26% deposit and would be looking to borrow £125k as a maximum. I would be adding my husband's income to the pot. A local mortgage broker has been working with us the last couple of months and has found us an AIP with Precise which would lend us the full amount but with an interest rate of 4.64% for a 2year fix with a large amount of fees and charges, huge fees if I left them and a stipulation that I only use their conveyancing team (so couldn't benefit from using the same solicitor for sale and purchase). Another option wouldn't lend us as much (10k short) but would be around 3.19%. Does this sound about right for the number of options available to us? My husband earns around £19500 a year and I have made around £9700 for the year. I appreciate our options will be pretty limited with me now being self-employed with 1 year of accounts. Neither of us has bad credit or any debts owing and both have credit scores of over 990.

childminder87 · 13 April 2015 at 11:37AM

I should add essentially we're hoping to only ever move once so our gut feeling is that we should take the hit for 2 years to get a house we'll love and then once that's up I'd have 3 years of accounts and be able to find a much better offer. But obviously if there's another way that we or the broker we're using are missing then we'd want to explore those options. At the moment it looks like we have two; the mortgage offers above or just not move which limits the business really as well as our homelife.