Mortgage achievable?

richie_greenuk

Following from an earlier thread from myself where my advisor advised I pursue a self cert mortgage, I have decided not to pursue through this company.
I have a meeting tomorrow with an alternate company but I just wanted to know if I would be able to get a standard 95% mortgage with my below details.
I have earned £17500 over the last year but have just got a new job earning £21500 which I start at end of the month. My partner works part time as she looks after our baby and earns around £9500. We have a part time business which earns £5000 per year. We have a loan of £13k which will be paid off through equity from our current property. Other than this we have no debt.

The property we are after is £169k - can we realistically achieve this? I am not interested in self cert options.

We have worked out our affordability and feel we can comfortably afford this in our opinion - but thats not what counts!

Many thanks in advance

herbiesjp

As per your previous thread, there are some lenders that will look to agree this for you on standard terms.

However a lot will depend on how you score on their internal scoring systems as that will dictate what income multiples/affordability calcultors they will use.

Please remember that at 95% most will charge a Higher Lending Charge, so be sure to compare against schemes that do not charge this fee

Mr_helpful

There are a few companies which should look at this as long as all income is verifiable

richie_greenuk

What do you mean by verifiable?
Payslips etc?

Conrad

Is there a probation with the new job? If so, most lenders will want this period to expire before releasing any funds.

High income multiple are typical of I Group, First National, N Rock (!) but so much depends on credit score as well as full underwriting.

For example you say your part time business 'earns £5000'. A full status lender will want full accounts for the last 2 or 3 years and use only the NET profit, not the turnover of course. Furthermore they will then do a 'reasonability test'; Is the business viable given your new job hours. What you think is viable is'nt relevant, what an underwriter decides is all that matters.

herbiesjp

Payslips, P60 and accounts - the lender could also request an employment reference as well

Not all lenders will want a probationary period to have expired - it will depend on circumstances

Dan_Collins_2

NR are good with prob periods but rates are a little high! If your broker presents it ok you will be fine.

richie_greenuk

Thanks - the problem I have with my p60. Due to me taking unpaid leave to set up my business, my income shows as only £12500, but my monthly salary for the last 6 months shows as £17500. Is this going to be a problem?
Also, my new employer has a 6 month probationary period! Our house is going to be ready in Dec/Jan!
I have only had the business around a year so have trading accounts for then which shows just over £5k net profit. The business is web based and requires little input now I have actually taken the time to set up the ventures.

herbiesjp

The payslips and P60 are normally an either/or scenario.

SO you can show either the last P60 or last 3 payslips - so you should be fine. Also the one years accounts should be OK with some lenders.

Probationary period, again is fine with lenders depending on your circumstances

PasturesNew

Even so 21,500+5000+9500=£36,000. (95% of 169000)/36000=4.45x (joint salaries and extra income) ... seems a tad tight

richie_greenuk

I have done my maths and feel we can afford it so hope the mortgage co's can too