Help with self cert mortgage please

clarerachel01

Hello
I am hoping for some advice
We are in the stage of buying another property and are wanting some help
figures are as below

House we sold ...... £81000
House buying ........£16900
Money owed on mortgage ... £42000

We also have 2 loans non of which are sucured on our home but we are going to pay 1 of them off which is approx £12000 and another for the same amount that we are wanting to part pay off depending on what money we have left .

My husband is self employed and has been for about 12 years and has already got his last 3 years accounts from his accountant , they are as follows......... net profit
2007 .... £28117
2006 ..... £ 28355
2005 ...... £ 23284


We have had a couple of arrears over the last couple of years but they are now fully paid off.

I have also just started a part time job but am only contracted for 12 hours a week and have only been working for about 3 weeks and my wages are £5.35 an hour ( i am doing more hours a week but only contracted for the 12)


We are hoping to put a 10% deposit on so we can reduce our outgoing ie paying off loans.

The mortgage advisor we have seen has come up with a 30 year mortgage with a company called platform on self cert but a high rate of 9.1 %

We have sat and worked our sums out and do belive we could afford this but are left wondering if this is the best we are gonna get.

Our buyers also want to move in to our house on monday (8th oct) or they are gonna have to pull out?

The problem we had was we was gonna buy another house that was a new build and they said we had to use there mortgage advisor and solicitors but they seemed to be messing us around so we swapped property solicitors and mortgage advisor which has left us running behind on buying ours , but our seller is not living in his house and so is happy for us to rent it untill the sale goes through this would all go through the solicitors ect...

Sorry to go on so much
And that you in advance for any help
Many thanks
Clare

dunstonh

Your lending stats (assuming you mean the new house is £169k and not 16.9k) are not very good.

With only a 10% deposit and looking to borrow £152,000 on an income of £28k is pushing it. The income multiple on that is 5.4x (assuming zero debts left after mortgage). Plus, the past arrears on a much smaller mortgage would be a negative point against you.

The use of platform would suggest that a mainstream lender isnt interested in you and the high interest rate also suggests you are high risk. Platform are sub prime/non-conforming lenders. You would only really use them when you are running out of options (you would never choose to pay 9.1% when you can get 5.79%).

At this time you are biting off more than you can chew and the high rate reflects the high risk of it going wrong. You need to think seriously about what you are doing. Remember, more interest rate rises could come (or sub-prime rates could increase even if interest rates dont due to the continuing credit squeeze).