Self employment and mortgage?

ozzie1980

Hi folks,

After a bit of advice if anyone can help...

My boyfriend and I are currently in rented accomodation. However, our landlord is happy to sell the house to us...bonus! This is where the advice is needed...

My boyfriend has been self employed for a year (but has been in the plastering trade for over 3 years) and has owned a property before. What would be the best route for him to get a mortgage?

Now, this is where the main problem lies...

Thanks to my previous relationship, I ended up having to enter into an IVA. If we wanted to put the mortage in both names, would this scupper our plans completely? And would they see the equity on the house as something they could get hold of?!

It's all very confusing, and my crappy credit history isn't helping - I'm happily paying everything off now and earn nearly 30k on my own, but don't want to lose the chance of owning the house!!

Thanks in advance!

Conrad

What size deposit?

ozzie1980

Again, slight problem...we may need 100%, although we could potentially get 5% deposit if we really need it....

poppy10_2

Forget it...

ozzie1980

That was positive!! Cheers!

So, in the hope that someone helpful may answer, could my other half apply for a self cert mortgage????!!

DickDastardly_2

I can only suggest seeing an Independent Financial Advisor on this. We did when we first got on the property ladder as we really didn't think we could get a mortgage, but credit where it's due, he managed to help us out. It was an awful mortgage looking back BUT it got us our first home and from there we quickly traded up and swapped the mortgage for something better - easier to do once they see you pay up and look big every month!

I would also advise to get in asap before banks get more jittery and withdraw high loans, etc. Good luck!

AndrewSmith

You will be very unlikely to get a self certify mortgage with a 5% deposit on any kind of rate worth having.

Also, even if you are not on the mortgage your other half will have to declare you as going to live there and declare that there is a financial association. Thus your credit history may still come into play.

I think you should wait till he has at least one years audited accounts and go from there.

nelliemcnell

It is a bit diffucult to give you a precise answer with out knowing a bit more. I am a recently qualified mortgage adviser and have been working in the business for a little over a month now, but my company does deal with both prime and sub prime mortgages. There are some prime lenders who will lend to people who have poor credit histories but are "clean" now. The best advise I can offer is to contact an independant mortgage adviser. Most lenders will consider each application on a case by case basis and assess each one accordingly. The more money that you could put down as a deposit the better as it increases the number of products available to you. Having said all that, because the lending market is jittery because of the collapse of the sub prime market in the USA, it does sadly make your life more difficult....but not impossible. If you would like me to get you a better idea as to what you can get then let me know. Hope it works out

Neil

nelliemcnell

Apologies I didn't read a previous post and failed to put the signature at the end, so here it is.

I am a Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

:doh:

BrandNewDay

A year ago, I would have told you, "No problem! See an Independend Financial Advisor who can search the whole market for you!" Unfortunately, things are rapidly changing. You lack of deposit, your boyfriend's employment history, and your credit history may well mean that there are very few, if any, options for you.

We just bought a house. We had a 15% deposit, but my husband has a bankruptcy in the recent past. The field of options was narrowing all summer long. We started out with an offer in principle from Deutsch Bank, but it evaporated at the last minute. Luckily, our FA found us another lender, but that was a very close call. A week after we got our house, the changed their lending criteria, and we would no longer have qualified.

You know what, though? Listening to us is a waste of time... why don't you find an IFA and get him or her to look at your situation? Make sure they can shop the whole market - ask, "are you whole-of-market?" and don't settle for anything else - and then let them see what they can do.

ozzie1980

Thanks guys for all your help and advice - it's much appreciated! Really wish my lovely ex of a boyfriend hadn't left me in the doodoo but he did!!

Wish us luck!!!