How much will this affect what we can borrow?

[Deleted User]

So my husband bought a house in his name 2 years ago as I am self employed and it just seemed too much hassle at the time to add me on too. 

We are having our house valued tomorrow and having a meeting with the financial advisor afterwards to see what we could borrow now. 

What would the process be like adding me on to the mortgage when we move to a new house? And does anyone know how the past year will affect how much we may be able to borrow? I recieved all of the self employment grants. My business as a childminder was definitely largely disrupted and we lost income and still aren't back to full capacity. 

What sort of thing will they ask in this meeting? We probably have about 4000 of debt altogether 
on credit cards which accumulated whilst in lockdown. We didn't have anything on credit cards when we moved in before, I'm guessing they will ask about that maybe? How much will that affect what we can borrow? We both have pretty good credit ratings and don't have any loans or overdrafts anything else like that. 

I also was on maternity leave for a period of time last year and now have a dependent, which we didn't before. Will all these things affect it a lot or just a little? I really have no idea of a lot of this so would like to have a tiny idea of what to expect tomorrow 

Thanks! 

Racky_Roo

I expect you'll be taking out a new mortgage in joint names rather than being added to the existing mortgage unless you're planning on porting it (which unless you have an early redemption penalty to pay, it wouldn't be worth doing as rates are lower now).

The FA will want to know all outgoings and all debts including car repayments, CC's etc. Any debts are taken off the calculation you can borrow. Usually the banks lending will want to see 3 months of payslips for an employed person but it varies for self employed. The FA will run through all this with you and will know which banks to put applications into and which to avoid.

Mat leave won't be taken into account, and having a dependent shouldn't affect you either apart from what outgoings you have.

Don't stress over it, i'd just get your outgoings written down, work out the debts and then both incomes and let the FA do their job. Good luck

[Deleted User]

Ah brilliant thanks so much for your reply, given me a bit of an idea of what to expect!

GG2708

hiya, also depending on your wages, the mortgage companies may look into the debts you have and request they are paid off before they approve a mortgage. Before my mortgage was approved I had to pay of a car loan that only had £3000 left on it even though I could afford both payments, yours may be different though as it all depends on how much you both earn and how much you are borrowing etc.. If you find a good mortgage advisor (who offers free advice) they will be able to advise what you will need to do and what your options are. Good luck