What are our chances?

Natsplus

Hi all,
So here's my story, my OH works full time and earns 55k a year, I am self employed and earn around 25k (1 years sa302 available). 
We had credit card debt and loan that we paid all off in May this year to prepare for mortgage. 
We now have an offer on our house that we are thinking of accepting. 
Our mortgage advisor applied for DIP in July which was declined due to credit rating. At that time, most of our file wasn't updated from the accounts we had cleared, so  our MA advised to close most of the credit cards and keep just 2 each.
Since then,  we have closed most of the accounts and the cr looks pretty good. 
We are applying for a 400k mortgage at 85%ltv, I would like to know what would our chances be, keeping in mind a few months ago we had debt plus I have just 1 years SA302 from my self employment. 
Any pointers will be appreciated. 

mortgagetakingages

Did you have debt or defaults and ccjs?

Natsplus

mortgagetakingages said:

Did you have debt or defaults and ccjs?

Debt, no defaults or ccj's

mortgagetakingages

So you looking for a 5x salary mortgage 85% ltv with one self employed income with a clean credit record. 

I think this is one for the brokers to advise but it sounds like you are stretching into difficult territory in current climate. 

Natsplus

mortgagetakingages said:

So you looking for a 5x salary mortgage 85% ltv with one self employed income with a clean credit record. 

I think this is one for the brokers to advise but it sounds like you are stretching into difficult territory in current climate. 

Basically looking at a 400k house with 340k mortgage at 85% ltv.
One full time employment and one self employed. 

mortgagetakingages

Ahh you said 400k mortgage not 340k which is within 4.5x so sounds possible. But with current climate and the self employed get signed up to a good mortgage advisor. 

haras_n0sirrah

With 1 years tax return your options will be limited. Have you filed 2019/2020 or is that the year you have?
The crux will be how your business has been affected by covid. Have you taken any grants, have you applied for bounce back, did you shut down for any significant period of time and will your business bank statements show a return to normal. As a broker this is what I am looking for on self employed clients