Mortgage for self employed - Please advise!

mortgagehunter1

i am a self employed consultant and need a mortgage.. When i last applied i was working for a company, so it was a bit easier.

This is the basic headline info:

Company Turnover: 50k, My Wages 5k, Wifes 5k, Expenses, 10k, Child Benefit/Tax Credit/Working Tax Credit 10k, Overall net annual income 30k.

I have a mortgage interest only with Northern rock at moment, and pay £550 per month for a 122 mortgage. I have 47k equity in my house, I am looking at a house at approx 220k.

Can anyone advise if this is feasible? I earn enough with everything but my only 'declarable' income is 10k, however with my expenses and tax credits etc... it adds up.

Any advise of where to do or what to do would be appreciated,

Thanks

[Deleted User]

I am in a similar situation where my husband's company makes over £50K a year but we pay ourselves low salaries (+ dividends) to pay less taxes . We are stuck with our current mortgage lender because due to our low salaries we can't borrow enough to remortgage with another bank. My mortgage is lower than yours BTW and is only 37% of the value of the house. I approached 2 whole market brokers and they couldn't help us, so my guess is that you are in the same shoes.

dpesky

Edited because of spam report....... call a broker who has expertise in the self cert market place - they will be able to help you

Owner of a Nationwide Mortgage Brokerage and features writer for UK mortgage magazines

This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

[Deleted User]

Thanks, that is what I was advised to do too, but aren't their rates usually higher? My A&L rate is not too bad. Not the best on the market, but ok.

dpesky

Hi Van, the rates depend on the lender involved but not all self cert rates are higher then normal rates such as the A & L. You can get these self cert deals from some of the big high street names without being penalised and remember with any decent broker there shouldnt ever be any obligation. regards pesky........

dunstonh

dpesky is breaking forum rules again. He advertising his own firm. I suggest you black list self-cert-mortgage-centre.co.uk .

Company Turnover: 50k, My Wages 5k, Wifes 5k, Expenses, 10k, Child Benefit/Tax Credit/Working Tax Credit 10k, Overall net annual income 30k.

Doesnt stack up i'm afraid. Company turnover means nothing. Its your income that matters and you have £10k income between you. Some lenders may take on some of the tax credits but even then you are looking at £173k of borrowing and that requires an income of £40-£55k.

Going self cert and telling lies about your income may get you the mortgage but there is no way that any decent adviser would condone that. You also run the risk of getting caught as they do run random checks (and where they are suspicious). That can get you blacklisted effectively as you would have to declare you made a false mortgage application on all future mortgage applications and you can guess how that goes down with the lenders.

payless

dpesky you seemed surprised ( edited spam?) that people are reporting your posts . I have previously directed you to the Code of Conduct..
(again its here http://forums.moneysavingexpert.com/showthread.html?t=325378 )

I would image that the spam reports and comments will continue , until your posts / signature conform. You obviously have knowledge , so why not share it... within this site's rules