Mortgage Chances?

baggie29

Ok. We are currently in the process of trying to obtain a new mortgage in order to move house. I am self employed. Last years net profit was 21330, previous (first) year 6500. This tax years projected earnings are around 26000 but nobody seems interested in this figure. My wife has recently resumed her career and is a full time permanent teacher on 29800. Her contract began September 1st.

So the 2 credit reports I have checked are as follows. Equifax score of 437 and Experian 999 (top mark). However on Equifax there are more than 3 credit searches on myself within the last 12 months. Two are phone companys. The weird one is a company called Shop Direct Finance Ltd who apparently own Littlewoods, Very, Empire etc. They credit checked me 3 times on the same date back in February. I have no recollection of applying for credit with this company. Therefore I have applied to Equifax to look into this and if possible erase it from my file. This can take up to 28 days apparently. The rest of the credit report is fine. I did miss one credit card payment in July. It was only a minimum payment however. Only 150 on card. I missed it due to being on holiday and forgetting about it. This however is not currently showing up on the report.

Anyway we are selling our house and have accepted an offer on it. We have also had an offer accepted on the property we want. It is 295k. We have 82k to put down after ours is sold so require a mortgage for 213k. I got a mortgage in principle for 210k from Natwest. However when our financial adviser did the full app last week they would not offer us anything near the amount we wanted?!??!?! They said there was some issue on the equifax but would not offer more info due to "data protection."

Currently awaiting our financial adviser to come back to us to see if there are any other options. What are peoples thoughts on this? Are there companies that will lend without being so stringent on to be honest rather pointless credit checks? We are overpaying our current mortgage to the tune of £600 per month so we have no issues with being able to afford the new mortgage payment which would be very similar.

Thanks in advance from one stressed out home mover!

amnblog

Nat West have most likely averaged £15,000 inc e based iven your profit profile.

If you can get a Lender to work on £21,330 you are in the ball park.

As you have already appointed a 'financial adviser' to handle this matter for you it is best left to them to resolve.

DandelionPatrol

baggie29 wrote: »

However when our financial adviser did the full app last week they would not offer us anything near the amount we wanted?!??!?! They said there was some issue on the equifax but would not offer more info due to "data protection."

As it is data about you, "data protection" should not be an issue.

baggie29

Sorry I should have been more clear. Natwest would not give the info to my financial adviser due to data protection. I guess they would if I rang up. Is there any way they would take into account this year's projected earnings (around 26k) instead of averaging out last year's earnings and the first years? Surely this would give a truer picture of affordability. I'm sure my accountant would provide a letter giving this info.

libf

baggie29 wrote: »

Sorry I should have been more clear. Natwest would not give the info to my financial adviser due to data protection. I guess they would if I rang up. Is there any way they would take into account this year's projected earnings (around 26k) instead of averaging out last year's earnings and the first years? Surely this would give a truer picture of affordability. I'm sure my accountant would provide a letter giving this info.

Different lenders treat self employed earning in different ways. Your financial adviser should know which lenders will look at last year's profit without averaging in the first years. I doubt you'll find a lender willing to look at projected though.

kingstreet

With a large increase from year one to year two, you may find a lender wants a projection for year three to justify using year two's figures.

Lenders are always on the lookout for those inflating their earnings to justify the mortgage they want, then reducing them immediately after so they pay less tax.

It's another reason tax calculations and tax overviews are now being requested, so lenders can ensure the correct tax has been paid on the declared income.