Will I be OK for mortgage

Craigy84

Hi all so I'm going for a mortgage I'm self employed earned 25000-32000 a year for last 7 years apart from last year earn 20000 been travelling and spent that 20000 in last six months. Will my bank b******s (don't know if I allowed to post name) look at that in a negative manner. I only want to borrow 110000 over 20 years with a 40000 deposit and can easily afford the repayments also have another 40000 savings for a rainy day I'm 34yo by the way any views would be greatly appreciated thank you

[Deleted User]

They'll assess you for affordability, which will include look at bank statements. You may want to make sure you or your broker position it correctly in your application.

Why apply solely with Barclays?

kingstreet

Most lenders will average your latest two years income, unless latest year is lower then they will use only that, so £20,000 in "latest" year is going to cause you a problem.

Craigy84

Also I need to get sa302 but accountant haven't done last years account yet do I need it or will they total up bank statements to see what I earned

Craigy84

Deleted_User wrote: »

They'll assess you for affordability, which will include look at bank statements. You may want to make sure you or your broker position it correctly in your application.

Why apply solely with Barclays?

I thought because I banked with them all my life maybe it was the best option am I not correct?

AnotherJoe

Indeed, you are very much not correct.

piggielady

You should really go to an independent mortgage advisor who will be able to look at all the mortgages available, not just the ones with Barclays.
Our mortgage advisor sourced us a mortgage not available other than through a broker and it was with Accord, part of Yorkshire Building Society; it was an exceptional deal.
Make sure all your paperwork is in order, especially as you are self employed and let someone else (the mortgage advisor) do all the leg work for you. They generally come to you and are genuinely interested in you - unlike our building society, which when we enquired about a mortgage, were advised to go home and look on the internet. Their loss, our gain.

Be flexible about how much you need for a rainy day and perhaps have a smaller mortgage - you will be able to build up your savings from not having to pay so much to your mortgage. You'll have an idea of how much you'll need for this rainy day when you know how much your outgoings will be - mortgage, bills, food, entertainment etc etc etc ...

Remember what Martin (Lewis ) says - you are generally paying more interest on mortgage payments than you earn on your savings.

Good luck with this juggling act!!!!