Self Employed Lower Income Big Deposit Problems

brett.collier

I'm a MSE Newbie (on Forums anyway) - and traditionally I've been awful with finances but with a rapidly expanding family I've had to grow up quickly. And I need some help. I'm going to keep this to bullet points because it could get very confusing, very quickly.

• Looking to move
• Selling at £315k
• Remaining equity = £172k
• Minimum purchase price £300k

Looking to move - urgently for various reasons

Both me and my wife are self employed - our joint annual Net income is just under £40k but we can't get a mortgage much over £110k and we really need £140k.

Halifax are our current lender and although they offered us £136k in July 2015, i reapplied today (as our house didn't sell last summer) and they now won't lend us anything.

Despite still having a mortgage of £116k with them currently.

So confused.

My credit score is 999, as is my wife's. We have 4 children but we had them last year. What's happened?

Any advice on Lower Income, higher deposit, 45-55% LTV mortgages.

Also my wife is a FTB as the current mortgage is in my name. I have 4 years books, she has 3.

Thanks

brett.collier

Also do any lenders work on a multiplier better than 4.5-5??

amnblog

£140,000 on £40,000 with a sensible term fits all day long with Halifax, even with 4 children.

I suspect there are outgoings not mentioned in the post.

Childcare costs
Car loans
Personal loans
Credit card debts

Or

Your self employed income is not what it seems.

More than 5x times income is technically possible, but never happens in real life.

Thrugelmir

Other Debts?

Income in decline?

Does your net income relate purely to your business activities?

Speak to a broker and discuss your personal circumstances in detail is worth doing. .

brett.collier

Thanks for replying

I have a personal loan of about £8000 and a credit card with £100 on it.
Both I've said will be settled with the excess equity from my house sale.

I've been as accurate as I can with outgoings.

My income has only hit £24k recently. Previous years looked more like, £16k, £5.5k and £3.5k for my first year (all Net SA302 declared income).

Wife's income is only £3k from SE, £13k is from Allowances and credits for one of our sons who is disabled.

It's not straight forward but we have all evidence to back it up.

Are there any known lenders who'll push the multiplier...?

brett.collier

My wife's SE income is a little erratic due to maternity leave, but they're only small figures

14/15 - £2361
13/14 - £1683
12/13 - £5791

Mine increase steadily every year