Self employed & a new mortgage
Discussion
The other half is planning on moving soon, so will obviously be changing her mortgage to hopefully cover the new house, everything is going great workwise & financially in a nut shell this is her situation:
Owes 70K on current mortgage
has 25K saved for new house budget
Current house worth 125K
Looking to buy a place for 175 to 180K
No other debts or loans
She spoke to a financial bod when the idea first came up and he said it shouldnt be a problem as she has been self employed for many years, keeps good records and lives within her means. BUT...
Shes just filing her 2009 tax return and although shes turning over about 30K - 35K the actual profit is only about 15K. Am I right in thinking her mortgage company are just going to look at that bottom line figure and say no way?
The way I see it she needs her 70K increasing to 100K, shes mid 30's if that effects the terms at all.
Owes 70K on current mortgage
has 25K saved for new house budget
Current house worth 125K
Looking to buy a place for 175 to 180K
No other debts or loans
She spoke to a financial bod when the idea first came up and he said it shouldnt be a problem as she has been self employed for many years, keeps good records and lives within her means. BUT...
Shes just filing her 2009 tax return and although shes turning over about 30K - 35K the actual profit is only about 15K. Am I right in thinking her mortgage company are just going to look at that bottom line figure and say no way?
The way I see it she needs her 70K increasing to 100K, shes mid 30's if that effects the terms at all.
Edited by Steamer on Monday 11th January 21:13
Gone are the days of easy self cert! The world is different now but there were brokers that would get the mortgage through what ever way they can, 2 ideas spring to mind 
1) Speak to a lender direct, IF they like her, IF they have a 'fast track' way of processing the application, IF she passes the credit score with a high pass, IF she states her income as what she believes is £35k then maybe... just maybe...no accounts will be required (its a low LTV)
2) Or another way is to buy the house as a buy to let, that way her income doesn't really come into it (The mortgage Works for example has no minimum personnel income) as long as the assumed rent cover the payments, plus a bit more then off you go...what you do with the house when you get the keys is up to you!
Now I'm not recommending in any way you do either & I prob should'nt even have posted this but I know of mortgage brokers in the past that would pull these tricks to get you the house. Both amount to mortgage fraud & you could go to jail!
This is just for info...dont do it.
1) Speak to a lender direct, IF they like her, IF they have a 'fast track' way of processing the application, IF she passes the credit score with a high pass, IF she states her income as what she believes is £35k then maybe... just maybe...no accounts will be required (its a low LTV)
2) Or another way is to buy the house as a buy to let, that way her income doesn't really come into it (The mortgage Works for example has no minimum personnel income) as long as the assumed rent cover the payments, plus a bit more then off you go...what you do with the house when you get the keys is up to you!
Now I'm not recommending in any way you do either & I prob should'nt even have posted this but I know of mortgage brokers in the past that would pull these tricks to get you the house. Both amount to mortgage fraud & you could go to jail!
This is just for info...dont do it.
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