Not Sure Where To Start For A Mortgage 31 March 2018 at 12:53PM in Mortgages & endowments 24 replies 2.7K views

Livealitle

Feeling pretty confused about how (if at all) I could purchase a property to live in and would love any input from those more experienced to suggest a creative way I could obtain a mortgage given that my circumstances aren’t perfect right now. Here’s my current status

1. Just returned to uk recently after being an expat for a long time (no uk address history as needed by many uk providers)
2. No fixed income or proof of sufficient income as just started my own ltd co and revenue will be pretty low for next few months
3. I already own 3 x uk properties which are mortgage free (never had a mortgage in my name before) and receive about £1500 monthly income from these.
4. Current property owned with my spouse who I am separated from and we are int the process of dividing those assets so I will probably end up with 2 x those in my name.
5. Looking to buy a property around £70k with little or no deposit

I can’t see how I would qualify for a mortgage with no salaried income and no uk address history

I have several family members who have fixed salaries and would be happy to do a joint mortgage.

Any mortgages someone might suggest for a high LTV and any idea if I might qualify for a first time buyer mortgage if the second person on the application already had a mortgage previously?

Super appreciate any suggestions!!

MortgageMamma

Hello there


You won't qualify for a FTB mortgage if you already own properties


Lenders differ on whether they will accept rent as income for mortgage purposes - some won't


You really need at least 1 year trading accounts plus a reasonable deposit to buy as self employed


If you've not held accounts in the UK for a long time your credit score will be low - it would be a good time to address this


You could go on a joint mortgage with another family member but the fact you have little work history would be problematic


Have you considered remortgaging one of your investment properties (post divorce) and using the money raise to buy a property outright?

Livealitle

Thanks so much. I really wasn!!!8217;t sure if I!!!8217;d qualify for FTB mortgage or how mortgages work for self employed but that clarifies it for me.

Feeling really stuck in a rut and hoped there might be something creative I could do with owning properties currently.

Looking at the remortgaging option of an existing property would I be subject to the same problems with that application or is the remortgage approved based on the house as leverage?

Working on the credit thing...I!!!8217;ve successfully been given several credit cards (which seems crazy) but have down that I!!!8217;m the hope it!!!8217;ll improve credit.

Thanks so much!!

ACG

The combination of everything:
No proof of income (ie 1 years accounts),
No proof of credit,
No UK address history,
low deposit.

Is going to be an absolute nightmare to place.

Depending on the finer details, there may be 1 or 2 lenders who would consider you, but you may find it is a case of holding fire until you have one years accounts. Appreciate it may seem a while off but it will probably fly, it will also mean you can prepare for an application rather than stressing about it.

MortgageMamma

If you looked at a buy to let remortgage there are a few lenders who will do that purely off the rental income achieved with no minimum earned income. I don't know where they would stand on 1 years self employment with no proof of income at all though. What did you do for money whilst you were living abroad?

Thrugelmir

Sell one of the properties you own and release the equity seems the most straightforward method of achieving your aim. Alternatively move into one of them until you've reestablished yourself back in the UK.

takman

MortgageMamma wrote: »

If you've not held accounts in the UK for a long time your credit score will be low - it would be a good time to address this

Credit scores are basically meaningless numbers generated by the CRA's and other companies who all use a different criteria and scale. No mortgage company would ever use one of these when making a mortgage decision. They will look at a person's credit history and use that information as part of the process.

You say your a finance professional; I really hope people don't pay you for your poor advice!.

amnblog

takman wrote: »

Credit scores are basically meaningless numbers generated by the CRA's and other companies who all use a different criteria and scale. No mortgage company would ever use one of these when making a mortgage decision. They will look at a person's credit history and use that information as part of the process.

You say your a finance professional; I really hope people don't pay you for your poor advice!.

MM is talking about the Lenders credit score, not those produced by the credit reference agencies for marketing purposes.

She is therefore correct in her statement.

amnblog

Livealitle - you should wait a year, so much of your situation does not currently fit with lenders requirements.

MortgageMamma

takman wrote: »

Credit scores are basically meaningless numbers generated by the CRA's and other companies who all use a different criteria and scale. No mortgage company would ever use one of these when making a mortgage decision. They will look at a person's credit history and use that information as part of the process.

You say your a finance professional; I really hope people don't pay you for your poor advice!.

I think I know what I'm talking about - this post is about helping the OP, not about debating credit scoring methods.

takman

MortgageMamma wrote: »

I think I know what I'm talking about - this post is about helping the OP, not about debating credit scoring methods.

It's very misleading to make a reference to someone having a credit score due to people thinking their credit score is the one generated by the CRA's. You need to be very careful with the terminology you use. It would have been better to say something along the lines of "it will be looked at as a negative when the lenders credit score you".

amnblog wrote: »

MM is talking about the Lenders credit score, not those produced by the credit reference agencies for marketing purposes.

She is therefore correct in her statement.

When people come on here and claim they are a finance professional it is even more important that they use the correct terminology and make it clear what they mean. Credit scoring is one of the most misunderstood things when it come to finance due to advertising campaigns of the CRA's. You just need to look at the "Credit file and Ratings" section of this forum.