Chances of a remortgage for single person after marriage split on an owned house.

anewdawn2020

Me and my wife's relationship has broken down and we are getting a divorce. Our house is paid off and is worth around £220k and we have a very small nominal amount(couple of hundred quid) on the mortgage at Barclays. So we will have £110k equity each and about £5k in savings each.
I would like to stay in this house and buy her out. However, I am self employed and my income is going to be only £14k a year (as now my wife is leaving, I will be doing the part time role to run an aspect of our business that she was paid to do). I hope to grow my income to £20k+ in April 2020/21 tax year. We have just been breaking even for the last few years and my tax return for the last few years shows a small loss each year. We have arranged for the house split to be paid in Autumn 2021. Despite having £5k in cash, I also have £10k on credit cards that is also due in Autumn 2021. So hopefully that should all be cleared by that stage.
How likely am I to be able to get a remortgage on my own with the above circumstances so I can buy my partner out? Would the fact we paid the original mortgage off in 10 years originally have any bearing on the decision?

foxy-stoat

Even at 4.5 times your salary you wont be able to borrow enough to buy her out.  Suggest selling the property and buying one you can pass the lender's affordability and have a clean break.

anewdawn2020

foxy-stoat said:

Even at 4.5 times your salary you wont be able to borrow enough to buy her out.  Suggest selling the property and buying one you can pass the lender's affordability and have a clean break.

Not even with £110k equity on the table?

MovingForwards

14500x4.5= £65250
Leaving you short £44750 plus legals etc to buy your wife out.
Then the added complication that lenders are being very strict with self-employed borrowers.

[Deleted User]

anewdawn2020 said:

foxy-stoat said:

Even at 4.5 times your salary you wont be able to borrow enough to buy her out.  Suggest selling the property and buying one you can pass the lender's affordability and have a clean break.

Not even with £110k equity on the table?

No 
Gone are the days whereby you put 20% down and basically self certify your income and borrow what you wanted. Trust me its the only way I could have EVER afforded the house Im in now ! Risky business that paid off for me, but did not for thousands of others hence Northern Rock going down the pan, self certify banned by the MMR ( mortgage rules ) and basically them only lending on strict multiplier / affordability requirements. 

Its not good news for you Im afraid and you’d need two years accounts ( maybe one with some lenders ) to prove you do earn enough for the mortgage. 

AnotherJoe

Could you get a job that pays more? 

anewdawn2020

MovingForwards said:

14500x4.5= £65250
Leaving you short £44750 plus legals etc to buy your wife out.
Then the added complication that lenders are being very strict with self-employed borrower

So 4.5 is the new multiple? What about a full-time job at £22k and scrape the rest together from savings and a few other options. There is also the option of my father being a guarantor on the mortgage.

anewdawn2020

AnotherJoe said:

Could you get a job that pays more? 

Perhaps yes. But surely 50% down gets you something? Plus the option of a guarantor on the mortgage?

[Deleted User]

anewdawn2020 said:

AnotherJoe said:

Could you get a job that pays more? 

Perhaps yes. But surely 50% down gets you something? Plus the option of a guarantor on the mortgage?

It gets you a lower interest rate - it doesnt skip the affordability checks 

If you can get a job paying a decent wages surely thats better than struggling on an incredibly low self employed wage ? 

Sistergold

Affordability does not matter how much you have what matters is what you want to borrow. What you are borrowing is what they need to ensure that you can afford. £14k and self employed is a non starter. 

MovingForwards

anewdawn2020 said:

MovingForwards said:

14500x4.5= £65250
Leaving you short £44750 plus legals etc to buy your wife out.
Then the added complication that lenders are being very strict with self-employed borrower

So 4.5 is the new multiple? What about a full-time job at £22k and scrape the rest together from savings and a few other options. There is also the option of my father being a guarantor on the mortgage.

 4.5x is at best chances for low salary.

£22k income would see £99k mortgage, at best and not all lenders do 4.5x

Yes, if you have savings to pay the difference, you can put that in. 'other options' if that includes loans from a bank, friends or family, that won't be acceptable by most lenders.

Guarantor tends to add an extra 10% and their home is at risk and tied up for several years.

Speak with a broker, but so far it looks difficult for you. 

Just out of curiousity, did you have a bounce back loan, the self-employed grant or mortgage holiday?

Do you have any loans, credit card, car lease / HP / PCP etc?

Any late / missed payments, defaults, CCJ etc?