A long and complicated one (mortgage advise)

hannahbond37

It might be helpful if I lay out the figures first

House bought April 2014 = £125,000
Mortgage left = £112,850
House value now = £160,000
...therefore £47,150 in equity

We would be looking to put down a £25,000 deposit on a £189,000 house. Me and my partner are both in our early twenties so securing a 35 or 40 year mortgage shouldn't be a problem.

We are tied into a 5 year fixed rate with NatWest and it is around 4% to leave early but are willing to absorb the cost with the equity as we are really keen to move. The crux of the issue is that my partner has recently become self-employed (he works as a plasterer), it is purely for his "employers" benefit (ie. he doesn't have to pay him holiday pay etc) but he may as well be employed as he doesn't have a company or make 'profit' his salary is just paid to him with a tax receipt from his boss which lets him know the tax has been paid on his behalf. Obviously with the extremely strict lending criteria not one bank will offer us the mortgage we are looking for.

We also have £4000 on a credit card which will be paid in full when we move, but is a detail to bare in mind.

Basically looking for some advice as to whether

a) wait out the fixed term period which would also mean my partner had full accounts for 3 years (however there is no guarantee we would get a mortgage then)
b) both my step-dad and dad have offered to come on the mortgage with me but there circumstances are
Dad = earns about £33k a year with a mortgage but no dependents
Step-dad = earns about £75k a year but has 2 dependents, no mortgage but pays quite high rent on a property (£900 p/m)
*But this would obviously mean my partner doesn't own the house*

Does anyone have any advise for this pickle please?

_CC_

Out of interest, where do you live in the UK that has seen your house appreciate ~30% in value in 18 months? Crikey!

hannahbond37

Central Bristol, it's having a bit of a boom at the moment and we renovated the house fairly extensively....which is why we would like to capitalize on all this equity and move to a different area

Thrugelmir

hannahbond37 wrote: »

it is purely for his "employers" benefit (ie. he doesn't have to pay him holiday pay etc)

Nor sick pay, nor redundancy pay, nor pay if there's no work.

A one sided arrangement...........

_CC_

hannahbond37 wrote: »

Central Bristol, it's having a bit of a boom at the moment and we renovated the house fairly extensively....which is why we would like to capitalize on all this equity and move to a different area

:beer:

Assuming you can realistically sell your current house for £160k and have taken into account moving costs, the sticking point may be the affordability on a new £164k mortgage.

With your Dad(s), a lender is unlikely to offer a 35-40 year mortgage term.

hannahbond37

Interesting about the mortgage term - so they look at that based on the oldest person?


and..


Thrugelmir - don't even get me started on how one sided an arrangement this is but my partner doesn't like to upset the apple cart

amnblog

Your Partner will most likely have options to borrow once he has been on what I assume is the CIS Contractors scheme for 12 months.


Patience may be the best solution.

amnblog

hannahbond37 wrote: »

Interesting about the mortgage term - so they look at that based on the oldest person?

That depends on the Lender and the circumstances.

getmore4less

you missed of your incomes.