Mortgage for equity funded entrepreneurs

AMJ1974

Hi all,

My wife and I are trying to get a mortgage. Because one of us is an entrepreneur in an equity funded business that is still loss making, we're finding hard to get a mortgage even though we are able to show that we are of very little risk to the bank as the other has a steady job that is enough to cover for a while should the worse happen to the business.

Has anybody come across this and how did you get a mortgage? Otherwise we're trapped renting which feels very unfair.

Many thanks!

icstm

I look forward to seeing the sensible replies.

During the naughties heydays, I know brokers were good at handling large bonuses and would set up mortgages that pretty much only needed to be paid once a year on bonus day. I was never one of those, but was the sales patter of my broker to say how good he was and working the system.

In your case a broker again would be needed. Otherwise lenders will look at the salaried partner and will not really go above 4.5-5.5x due to affordability rules, even if you have savings.

If you partner earns enough, you might wish to speak to a wealth department of a bank, as they might have a better understanding of the underwriting rules.

Your predicament highlights issue with centralised decision making.