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  • FIRST POST
    • kevelkinsphoto
    • By kevelkinsphoto 8th Nov 19, 5:53 PM
    • 5Posts
    • 0Thanks
    kevelkinsphoto
    Recently Self Employed
    • #1
    • 8th Nov 19, 5:53 PM
    Recently Self Employed 8th Nov 19 at 5:53 PM
    I'm after a bit of advice in regards to remortgaging and possibly lending more.

    I recently went self employed (3 years ago). I had my mortgage before going self employed and I was in full time employment. I used to bring in around 21,000 a year and my wife brought in around 24,000 a year. Now I have gone self employed my accounts don't look so good. I am a new business and haven't had to pay tax yet as I am below the threshold. My wife now brings in around 30,000.

    So I did a bit of research into borrowing a bit more from the bank to do the usual Kitchen and bathroom work and the deals look pretty good. The only issue is I'm almost certain I will fail the affordability check. We can afford the monthly repayments but I know the banks will say no due to my accounts.

    Has anybody got any advice on what I could do?
Page 1
    • ACG
    • By ACG 8th Nov 19, 6:01 PM
    • 19,637 Posts
    • 11,185 Thanks
    ACG
    • #2
    • 8th Nov 19, 6:01 PM
    • #2
    • 8th Nov 19, 6:01 PM
    If you do not pass affordability, there is no solution to overcome that.
    However, you have not said how old you are, what debts you have and how much you are looking to borrow in addition to your current mortgage.

    I am not sure I would be classing a 3 year old business as a new business. That is a decent length of time trading.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. 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.
    • kevelkinsphoto
    • By kevelkinsphoto 8th Nov 19, 6:16 PM
    • 5 Posts
    • 0 Thanks
    kevelkinsphoto
    • #3
    • 8th Nov 19, 6:16 PM
    • #3
    • 8th Nov 19, 6:16 PM
    I am 32 years old, and would like to borrow 30,000 extra on the mortgage. My current debt is around 5,500 which some of the 30,000 would be used to consolidate. My business isn’t as fast growing as I would’ve hoped and this year I would’ve brought in 11,000 (gross) with next year looking the same.
    • ACG
    • By ACG 8th Nov 19, 6:23 PM
    • 19,637 Posts
    • 11,185 Thanks
    ACG
    • #4
    • 8th Nov 19, 6:23 PM
    • #4
    • 8th Nov 19, 6:23 PM
    How much is your current mortgage balance?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. 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.
    • tiger eyes
    • By tiger eyes 8th Nov 19, 6:27 PM
    • 935 Posts
    • 2,338 Thanks
    tiger eyes
    • #5
    • 8th Nov 19, 6:27 PM
    • #5
    • 8th Nov 19, 6:27 PM
    Is redoing the kitchen and bathroom urgent? Could you save up for 6-12 months and do it then?
    • kevelkinsphoto
    • By kevelkinsphoto 8th Nov 19, 6:30 PM
    • 5 Posts
    • 0 Thanks
    kevelkinsphoto
    • #6
    • 8th Nov 19, 6:30 PM
    • #6
    • 8th Nov 19, 6:30 PM
    ACG -

    current mortgage balance is 131,000 and property value is around 200,000(ish)
    • kevelkinsphoto
    • By kevelkinsphoto 8th Nov 19, 6:34 PM
    • 5 Posts
    • 0 Thanks
    kevelkinsphoto
    • #7
    • 8th Nov 19, 6:34 PM
    • #7
    • 8th Nov 19, 6:34 PM
    Tiger eyes - we’ve been trying to get the kitchen done for the last three years and almost seems impossible to save. The kitchen and bathroom are the originals so about (18 years old)
    • ACG
    • By ACG 8th Nov 19, 6:39 PM
    • 19,637 Posts
    • 11,185 Thanks
    ACG
    • #8
    • 8th Nov 19, 6:39 PM
    • #8
    • 8th Nov 19, 6:39 PM
    General rule of thumb is you can lend around 4.5x income. So 30k plus 10k = 40k.

    Multiply that by and you have you 160k.

    It should be passing from what you have said.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. 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.
    • kevelkinsphoto
    • By kevelkinsphoto 8th Nov 19, 6:43 PM
    • 5 Posts
    • 0 Thanks
    kevelkinsphoto
    • #9
    • 8th Nov 19, 6:43 PM
    • #9
    • 8th Nov 19, 6:43 PM
    Thanks ACG!
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