Buying a more expensive house without increasing mortgage amount

looknohands

I've no idea if this is possible, so worth asking... I've never sold a property before so not sure

I have recently formed a company so I have zero years of accounts. However it's just a re-structuring of my sole trader business, which I've held for 6 years and will maintain the same profit. Now I'm aware this sort of change closes up the possibility of borrowing more cash for a few years now as my new company needs to build up two years accounts.

So if I wanted to buy a more expensive property within the next couple of years is it possible to keep my current level of mortgage debt and do so? By this I mean could I simply add my own savings to match the cost of a bigger house. So for example, I currently have 150k mortgage and 30k equity (180k value)... if I sold this property for 180k am I able to just move with my mortgage to a property worth 220k by adding savings to this (obviously subject to a valuation) and paying fees... thus now having a 150k mortgage on a 220k property, so reducing the LTV as well.

Seems as though you should be able to do this without any sort of re-assessment of my income right?

ACG

There are lenders who will accept the income from your sole trader business. I went limited 12 months ago and not be able to get a Mortgage at normal rates would have stopped me doing it, I made some calls and found enough lenders happy enough to do it, not all of them but enough.

Thrugelmir

looknohands wrote: »

Seems as though you should be able to do this without any sort of re-assessment of my income right?

No. New application is subject to the regulatory requirements at the time along with the lenders own internal lending policies and criteria. While not noticeably so there are constant changes.

looknohands

Ah I see, so even if you're not increasing borrowing you'd still be subject to income assessments on a new purchase with same lender? Would the same apply for my current mortgage when I renew it on current house? I'd assumed they can't take your current mortgage away from you if you don't maintain their criteria for income when my 2 year fixed term is up...

ACG

Most lenders will allow you to switch products without reassessing your income. Some may allow you to port it without the need for further assessment - but you would have to ask the question.