Help - problems getting a mortgage!

clm2802

Hi, Wondered if anyone has any advice for me! I bought a property at auction and am now struggling to get a mortgage. We have been offered a self-cert mortgage but the redemptions penalties are really high, also the broker fees are over #5000. Unfortunately as our situation is so complicated, it seems no one is willing to offer a mortgage without these huge fees. Any advice would be greatly appreciated!
Thanks, Claire.

homer_j_3

Why is your situation complicated?

_Andy_

Hi Claire

If you could give us a better idea of your situation, e.g. why it's complicated and why you were needing/been recommended self-cert, we should be able to help better.

Thanks

herbiesjp

Are you saying you have paid your deposit on auction day already?

You had not had the mortgage agreed before auction day?

What timescales do you have to complete the purchase by?

clm2802

It's fairly complicated because my husband is self-employed, so his certified accounts do not show his full income. Also he has a CCJ of #1500 (2years old) which has been repaid. The property we are buying is in a fairly bad state, although the valuation has reflected the amount we are paying for it. I do not work at the moment as have 3 young children. Oh, forgot to mention this is a property we wish to do up and sell, we already have a mortgage on our house.
Sorry the info is a bit jumbled, difficult to explain properly!

Thanks again,

Claire.

clm2802

We paid a deposit on the auction day, but as we have had problems getting the mortgage the vendors have kindly given us extra time. We need to complete in 2-3 weeks( I know it's tight) or will forfeit the deposit! We, ignorantly did not get an offer before the auction as really did not expect to get the property.

herbiesjp

What is the property purchase price?

What deposit do you have?
What is yor husbands NET profit for the last 3 years?

clm2802

The purchase price was #152,275 of which we have paid a 10% deposit. Net profit varies between 22,000 - 29,000 over the last three years.

herbiesjp

Seeing as you have Net profit figures, I don't see why you are looking to self cert.

You would have to apply for a full status mortgage (providing last 3 years accounts to verify net profit/income)

I doubt you will be able to get a mortgage that high, and therefore rather than pay high arrangement fees and broker fees for self cert mortgages - put those funds to good use and put them down as more deposit

The problem you are obviously going to here though, is that you already have your own residential mortgage and the income provided is not enough to support both mortgages on a residential basis

clm2802

Thanks Herbiesjp,

We have enough deposit to apply for a 70% mortgage. Do you know of anyone that is likely to lend this amount in our circumstances?

maninthestreet

How much is outstanding on the mortgage for your own house?