Impossible to get a mortgage as a single man?

Jsutherland7

Hi I hope you are all well,
Ive just come for some advice really.

im trying to get my own home. Private renting seems to expensive. 

I have two kids but separated with partner. (Her choice) 

and I’m living with my grandparents at 34 years old.

i really want my own place. I have 33k saved for a deposit. Taken 6 years to save.
i am self employed (CIS) 
I have 8 years of income proof. 

For the last 4 years my gross is £50k
no debt
good credit

ive been exploring shared ownership, I know the deals not great! But as a single applicant it seems to only way. 

I’ve spoken to
A broker and my lending potential is around the 240k mark. ( deposit amount included) 

but I can’t seem to find anything. 

I just wondered if anyone knew which route I could or should take to get my own place for my kids. 

Are there any other schemes,
I would like to stay in London as I was born here and my kids are happy in there school. 

Any advice on what route to take for short term success in securing a home in south London would be amazing

thank You 

jackieblack

Of course it’s possible to get a mortgage- your broker has established that, but if you can’t afford the kind of property you want you’ll need a bigger deposit (with a £50k income and living with grandparents that should be fairly easy fairly quickly if it’s made a priority) or look at a cheaper area - how feasible is that? eg how much do you have your children during the week/when they are at school? Do they live mainly with you or their mother during the week?
Bottom line is, if all of your preferences are not within your affordability, one or more needs adjusting

BridgetTheCat

You have to manage your own expectations. Ideally I’d have wanted a bungalow with decent living space but a 2-bed semi was what I could afford so that’s what I bought.

ACG

You cant get a mortgage, but you are in the position where you cant get what you want. 
I was in a similar situation (albeit without the kids) back in 2012. I ended up buying a house about 3-4 miles away because it was cheaper, I also had to buy a doer upper because it was cheaper still and was literally all I could afford. 

I did it up over a 3-4 years (easier without kids) and then sold up in 2017 and had made a reasonable amount in that time to the point where I could afford to buy closer to where I wanted. 

There will need to be a sacrifice by the sounds of it - thats usually either the property or the area (or as I found, both). 

But with kids I know there is a lot more to factor in. I doubt I could have done what I did with kids. 

Isthisforreal99

You say £50k gross but what's your taxable profit? Happen to know a few CIS sub-contractors who think everything is a claimable expense - which goes against you when trying to borrow.

Andyjflet

Hi mate, had to do the same after a divorce, at 56 I bought my own place, £60k deposit, 17 year mortgage, bought a new two bedroom flat in a nice complex. under £1k a month mortgage, keep saving, perhaps get into something ASAP, a flat or somewhere you can call your own. 
Prior to this I did shared ownership, as a sales person on mainly commission its the only way I could get a foot on the bottom rung, had a large, new three bed semi with double drive, en-suite, big garden etc. Sold that last year and made £80k profit. even on my 40% share. 

kingstreet

Isthisforreal99 said:

You say £50k gross but what's your taxable profit? Happen to know a few CIS sub-contractors who think everything is a claimable expense - which goes against you when trying to borrow.

There are lenders who treat CIS Sub-Contractors like employees and use latest three months remittances and bank statements to evidence income; not self-employed net profit via Tax Calcs & TYOs.

Jsutherland7

jackieblack said:

Of course it’s possible to get a mortgage- your broker has established that, but if you can’t afford the kind of property you want you’ll need a bigger deposit (with a £50k income and living with grandparents that should be fairly easy fairly quickly if it’s made a priority) or look at a cheaper area - how feasible is that? eg how much do you have your children during the week/when they are at school? Do they live mainly with you or their mother during the week?
Bottom line is, if all of your preferences are not within your affordability, one or more needs adjusting

Yes. I do put away £200 a week. Maybe I’m just not quite there yet. I’m just getting a tad in patient. And it’s effecting my mental
health as a man. The kids live with there mum
full
time, but I see them daily after picking them up
from school. 

And I have them at the weekends.
i mean I’ve looked further out of London, but even then the prices are still high. 

Im
Scared of having nothing left at the end of the month if im approved also. 

The country just seems like they want every lazy penny of of us at the moment. And I doubt it’ll change. 

Jsutherland7

Isthisforreal99 said:

You say £50k gross but what's your taxable profit? Happen to know a few CIS sub-contractors who think everything is a claimable expense - which goes against you when trying to borrow.

Yes you are right. We do get a decent return in April. But I don’t go over the top with it and stick to the guidelines. 

My broker has my tax calculations for the last 3 years and has said that my taxable profit is 44k

the argument would be that I could
not claim anything back for the next few years to keep my income looking stronger when it comes to affordability. But I don’t have years to wait to get a home

Jsutherland7

kingstreet said:

Isthisforreal99 said:

You say £50k gross but what's your taxable profit? Happen to know a few CIS sub-contractors who think everything is a claimable expense - which goes against you when trying to borrow.

There are lenders who treat CIS Sub-Contractors like employees and use latest three months remittances and bank statements to evidence income; not self-employed net profit via Tax Calcs & TYOs.

Yes, my broker has asked for tax calculations as well as payslips and bank statements as different lenders ask for different ways. My broker will use a lender that makes me look the best. 

Jsutherland7

Andyjflet said:

Hi mate, had to do the same after a divorce, at 56 I bought my own place, £60k deposit, 17 year mortgage, bought a new two bedroom flat in a nice complex. under £1k a month mortgage, keep saving, perhaps get into something ASAP, a flat or somewhere you can call your own. 
Prior to this I did shared ownership, as a sales person on mainly commission its the only way I could get a foot on the bottom rung, had a large, new three bed semi with double drive, en-suite, big garden etc. Sold that last year and made £80k profit. even on my 40% share. 

Hi hope you are well. 

Yes ive definitely been looking at shared ownership.
as the figures are more attractive for me as a single
applicant.
I was close to being accepted for one but the service charge messed up affordability. (£275pm)
ridiculous. 

This is what infuriates me, without that crazy service charge fee I’d have got the house. 

Not the best deal in the world but I’d have somewhere of my own. 

This country doesn’t make it easy. Even with  good job. Debt free and a ok deposit.

1K a month is the sort of price of looking for for monthly payments.

to
also Have a quality of life still after mortgage reypaments and bills etc.

is it too much to ask to someone that worked from the age of 16 to now. Born in London. Paid my taxes.