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Realistically, what are our chances of getting a mortgage..?
SueF1
Posts: 137 Forumite
Hi, firstly let me mention I am booked in to see my broker next week but wondered if you lovely lot have any words of wisdom in the meantime...
I currently own a flat where I live with my partner and our child. The flat is owned by me, the mortgage is in my name. We are looking to get a joint mortgage to enable us to move to a house (I now only work 4 days and my salary will not allow me to borrow any more alone) so looking to take out a joint mortgage but wondering what are chances are as a few factors.
I'm employed, have been in the same job for nearly 14 years and on a good part time wage. No debt, excellent credit report etc etc. Earn £32K. Furloughed April, May, June but back on full wage from July.
He is self employed, has been for 3 years earning an average of £30K per year but has a substantial loan from a previous relationship he is still paying off and 2 x credit cards totaling £6000, again which he is paying off. Aside from the debt, his credit is good as he is paying it off and hasn't missed payments etc. When (proper) lockdown started he stopped working for 6 weeks and claimed SEISS (because why wouldn't you?!). Returned to work after this and has been non stop since with no signs of easing so will meet, if not exceed last years profits. He also claimed a bounce back loan as had a business loan to pay for his work van, taken out a year ago. The interest is obviously very low so thought it a better idea to claim the bounceback and use it to pay off the original business van loan, which he has done.
My question is do we have any chance of getting a mortgage as he has this debt? I know it will affect our affordability.
We would like to add another £100K onto the existing mortgage (currently at £156K) which would increase the payments by approx £300 pcm. If they looked at my bank statements they could see that I can actually afford this myself anyway but don't know if that has any bearing.
Any help appreciated, thank you.
I currently own a flat where I live with my partner and our child. The flat is owned by me, the mortgage is in my name. We are looking to get a joint mortgage to enable us to move to a house (I now only work 4 days and my salary will not allow me to borrow any more alone) so looking to take out a joint mortgage but wondering what are chances are as a few factors.
I'm employed, have been in the same job for nearly 14 years and on a good part time wage. No debt, excellent credit report etc etc. Earn £32K. Furloughed April, May, June but back on full wage from July.
He is self employed, has been for 3 years earning an average of £30K per year but has a substantial loan from a previous relationship he is still paying off and 2 x credit cards totaling £6000, again which he is paying off. Aside from the debt, his credit is good as he is paying it off and hasn't missed payments etc. When (proper) lockdown started he stopped working for 6 weeks and claimed SEISS (because why wouldn't you?!). Returned to work after this and has been non stop since with no signs of easing so will meet, if not exceed last years profits. He also claimed a bounce back loan as had a business loan to pay for his work van, taken out a year ago. The interest is obviously very low so thought it a better idea to claim the bounceback and use it to pay off the original business van loan, which he has done.
My question is do we have any chance of getting a mortgage as he has this debt? I know it will affect our affordability.
We would like to add another £100K onto the existing mortgage (currently at £156K) which would increase the payments by approx £300 pcm. If they looked at my bank statements they could see that I can actually afford this myself anyway but don't know if that has any bearing.
Any help appreciated, thank you.
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Comments
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Roughly how much is this 'substantial' loan?0
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Opting to take both the SEISS and BBL will give the appearance that business finances aren't healthy.0
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Hhmm, thanks. Would they request bank statements to ascertain whether this was the case or would it be just a flat out no do you think?Thrugelmir said:Opting to take both the SEISS and BBL will give the appearance that business finances aren't healthy.
This (pandemic!) is such a difficult situation isn't it. People were offered the SEISS and took it in most cases, thinking there would be no repercussions and the BBL was purely to replace a business van loan but with lower interest. Again, a no- brainer, or so you'd think until you see how harmful they are down the line....0 -
I am looking to buy a house, self employed,
I was told quite certainly I would not be able to get a mortgage if I had taken either the sess or the bbl
I would think you have very low chance if he has taken both.
If he has actually used all the money from the sess and the bbl to pay off some of the existing loans then that will leave you in a better position.0 -
The 2 brokers i have spoken to have not said that so I'm clinging onto a little bit of hope!se2020 said:I am looking to buy a house, self employed,
I was told quite certainly I would not be able to get a mortgage if I had taken either the sess or the bbl
I would think you have very low chance if he has taken both.
If he has actually used all the money from the sess and the bbl to pay off some of the existing loans then that will leave you in a better position.
Thanks though0 -
That's good news, please let me know how you get on, I have been holding off on taking a bounce back loan as i was told it would be a no-no for a mortgage so it would be good to hear if that was not the case!SueF1 said:
The 2 brokers i have spoken to have not said that so I'm clinging onto a little bit of hope!se2020 said:I am looking to buy a house, self employed,
I was told quite certainly I would not be able to get a mortgage if I had taken either the sess or the bbl
I would think you have very low chance if he has taken both.
If he has actually used all the money from the sess and the bbl to pay off some of the existing loans then that will leave you in a better position.
Thanks though0 -
Yes, will do. Keeping our fingers crossed!se2020 said:
That's good news, please let me know how you get on, I have been holding off on taking a bounce back loan as i was told it would be a no-no for a mortgage so it would be good to hear if that was not the case!SueF1 said:
The 2 brokers i have spoken to have not said that so I'm clinging onto a little bit of hope!se2020 said:I am looking to buy a house, self employed,
I was told quite certainly I would not be able to get a mortgage if I had taken either the sess or the bbl
I would think you have very low chance if he has taken both.
If he has actually used all the money from the sess and the bbl to pay off some of the existing loans then that will leave you in a better position.
Thanks though0
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