Mortgage Prisoner HELP

paulamarie76

getmore4less wrote: »

What the current house worth and mortgage size?

£169,500 and mortgage £144,000

getmore4less

Just squeezing 85% LTV

If you are claiming net £16k on your business that is equivalent to a regular salary of £18,400


Multiples should be OK on £46k total

How big are the loans?

If one car loan is going through the business is it getting counted twice

paulamarie76

getmore4less wrote: »

Just squeezing 85% LTV

If you are claiming net £16k on your business that is equivalent to a regular salary of £18,400


Multiples should be OK on £46k total

How big are the loans?

If one car loan is going through the business is it getting counted twice

Car 1 - £245 a month (15 months left)
car 2 - £277 a month (15 months left)
Caravan - £385 a month (4 years left)
Also Caravan £200 a month (5 years left)

Car 1 goes through my accounts.
Caravan profit last season was £7039 according to our accountant she hasn't fully finalised but thats pretty close to the figure.

BoGoF

Your monthly outgoings are going to have a huge impact on affordability calculations. Have you had a look at online calculators to see how much you could now borrow - you will be surprised.

Any dependants?
What term are you looking at?

kingstreet

I know I'm a glutton for punishment and I risk further criticism for asking a third question (and making no comment whatsoever!) but is your caravan finance being treated as a business expense by lenders and ignored for mortgage affordability, or is it being taken into account and reducing what you can borrow?

paulamarie76

kingstreet wrote: »

I know I'm a glutton for punishment and I risk further criticism for asking a third question (and making no comment whatsoever!) but is your caravan finance being treated as a business expense by lenders and ignored for mortgage affordability, or is it being taken into account and reducing what you can borrow?

sorry was out picking up a small human from football camp.
Ok I think the bank I spoke to are not treating it as a business expense, however I have just re-spoken to the mortgage broker I spoke to also yesterday who initially said wait until the cars are paid off next year, but now has had a thought about the caravan finance as "asset finance" and not as personal loans to try and get around this problem. (In all honesty I have no idea what this means but will let him do his thing and pray)

kingstreet

I was going to suggest that some lenders would treat the caravan finance as a business expense as it produces income. Even if they don't take the income into account, having the caravan finance not impact your mortgage affordability would surely be helpful.

BTW I've never before been criticised for asking a couple of questions to see if my idea might work, before making the suggestion. As a broker with 35 years experience, I often check if something might work before I suggest it...

paulamarie76

kingstreet wrote: »

I was going to suggest that some lenders would treat the caravan finance as a business expense as it produces income. Even if they don't take the income into account, having the caravan finance not impact your mortgage affordability would surely be helpful.

BTW I've never before been criticised for asking a couple of questions to see if my idea might work, before making the suggestion. As a broker with 35 years experience, I often check if something might work before I suggest it...

I apologise then if I took it the wrong way, I read it as "accusatory" as though you were inferring I wasn't declaring the caravan rental income. So I apologise.

kingstreet

You'll have to forgive my theatricality.

Sometimes it's nice to check a few facts then come back with a flourish which might provide the solution that's needed. We've pointed out to lenders previously that a credit commitment was involved (or partly involved) in a business generating income and it has been ignored (or partly ignored) for the purposes of mortgage affordability.

For far too much time these days, this job is like Rumplestiltskin, constantly spinning **** into gold and this site can sometimes give some welcome relief from the "day job" as you can provide the solution without all the hours of grief that went into establishing it the first time.

Typically someone wanting to criticise you on here will actually do it straight up and not simply ask you a couple of questions from which you are supposed to infer their meaning. I just play things with a straight bat, try to help and don't pass judgment or opinion.

paulamarie76

kingstreet wrote: »

You'll have to forgive my theatricality.

Sometimes it's nice to check a few facts then come back with a flourish which might provide the solution that's needed. We've pointed out to lenders previously that a credit commitment was involved (or partly involved) in a business generating income and it has been ignored (or partly ignored) for the purposes of mortgage affordability.

For far too much time these days, this job is like Rumplestiltskin, constantly spinning **** into gold and this site can sometimes give some welcome relief from the "day job" as you can provide the solution without all the hours of grief that went into establishing it the first time.

Typically someone wanting to criticise you on here will actually do it straight up and not simply ask you a couple of questions from which you are supposed to infer their meaning. I just play things with a straight bat, try to help and don't pass judgment or opinion.

I shall mention this to the broker who we are currently speaking to and see what he thinks and shall keep everything crossed, thank you for the info.