What are my chances of getting a mortgage

rosie73

Hello, I found this forum and thought I would post a question as I need some advice. I am 24 and have been self employed for just over 9 months now and I want to buy my house. Its a council house which I have lived in all my life so I believe I qualify for the right to buy scheme. The house would be 250k normally but I get 60% off because I have lived here so long, so it would be 100k. I earn 1.5k to 2k per month and already have 30k saved so I would only need a 70k mortgage. My credit score is great. What do you think my chances are?

Thank you for your advice

Amara

But will you get 60% off? I don't think so, as discount it capped at just over £100k in London and £77900 elsewhere in England. also, you're only 24 , presumably you're applying with parents or "inherited " tenancy after them. In that case, discount won't be counted from your birth, but since you were 16, so only 8% extra off. But even so, you probably qualify now for full discount. So, depending where you're based, your purchase price will be £150/180k, not £100k.

ACG

How much do you expect to be your pre tax income (after expenses and everything you bang through your books).

Multiply that by around 4 - 4.5 and that will give you an approximate idea of how much you can lend. I write £x but after my expenses (diesel, offices, marketing etc) I actually earn £y.

King_Slayer

Can you get some figures of your income and expenditure together? Someone may be able to give you rough idea.

ashy_mashy

Have you tried the Nationwide affordability calculator: http://www.nationwide.co.uk/products/mortgages/our-mortgages/tools-and-calculators/how-much-could-you-borrow

I think for self-employed you need to show that you've had an income for about 2 years, or show them that there is little risk in something going wrong and you suddenly having less income than you do now.

kingstreet

Under 1 year trading = 0 lenders.

After 1 year trading = 3 - 4 lenders.

After 2+ years trading = pretty much all lenders, the odd one wants 3+

All subject to affordability, of course.

amnblog

kingstreet wrote: »

Under 1 year trading = 0 lenders.

After 1 year trading = 3 - 4 lenders.

After 2+ years trading = pretty much all lenders, the odd one wants 3+

All subject to affordability, of course.

Plus the right to buy element slims options down further.

Our OP may get placed late this year with the help of a broker. Assuming the business can be proven profitable.