Not enjoying job, Mortage opportunity, current debt

airblaster22 · 10 July 2018 at 10:36AM

Hi All,
I'm in a bit of a bind, I own a company which pays our rent generously, but at the same time I am no longer enjoying my work and would like to leave the company as a director.

We also have the great opportunity to gain a 100k-140k+ deposit on a house thanks to a close family member selling up and wanting to live with us, which is very promising.

We are slightly overdrawn over the past few months thanks to the HMRC, some moving costs and slightly lower wages. I noticed there was a mortage rework in 2014 which is slightly concerning. Our credit rating is fantastic though, not sure if that counts. Thankfully our income is regular for 4 years, albeit slightly reduced starting 2018.

So the bind i'm in is - stick with my work and get a mortgage and then consider my options. Or be forever miserable renting as we are, and start building 3 years accounts with a new company of mine.

With the new morty regulations, I'm worried about the family selling, and the left overs and our joint income will not be able to cover the cost of the house.

Self employed / directors / entrepeneurs - what would you do?

At least that lump sum could afford 10 years of rent! lol - urgh!

enthusiasticsaver · 10 July 2018 at 10:45AM

If you left the company what would you do instead? You wont get a mortgage without a regular income. If you intend getting a mortgage and then leaving that sounds a bit dicey especially as it will be your relatives capital you will be risking as you aren't putting anything into the property. You wont get help with mortgage payments now if you are unemployed. It is treated as a loan rather than a benefit.

sal_III · 10 July 2018 at 11:00AM

Depending on terms and deposit but mortgage payments are roughly equal to the rent for the same property. If you had fallen on hard times and became overdrawn now, how do you expect to keep up the repayment with your new untested job/company?

What do you mean overdrawn thanks to the HMRC? Did you get a fine, or was it the case where you didn't put aside the money for the tax throughout the year?

The only thing worse than renting is overstretching to get a mortgage and end up losing your home.

What does the 2014 change of rules has to do with anything? They are already in place, it's not like you have a time window to sneak past them if you act now.

So I would wait for steady income before making massive financial commitment like mortgage.

A_Nice_Englishman · 10 July 2018 at 11:03AM

Is paying to share a house with somebody who owns a substantial part of it better than paying a landlord for exclusive use of a property? What are the long term plans? Would you buy out the relative if and when you can afford to? Would you inherit their share eventually?

Not enjoying job, Mortage opportunity, current debt

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