Self employed mortgage

[geared 303]

We found alot of mortgage advisers/brokers to be worse than useless really, you've gotta keep at it and you might have to go talk to the banks directly.

[Suzidee50 10]

We r with Santander at the moment but they won't transfer our mortgage to the new property we r wanting to buy, so we have to re apply. It's all about affordability with them, which is good, but we were wanting to pay a large chunk off the mortgage as we r downsizing, but they won't give us a mortgage!

[Suzidee50 10]

you have to re apply too?

[*Turbo* 10]

I dont know Santanders lending policy but is your husbands self employment losing money? Or do you have debts that will be outstanding after you move?

 

Affordability must be quite low not to be able afford 50/60k

 

Mortgages are more difficult since MMR

[Suzidee50 10]

No, my husbands business is not losing money, it is just because he doesn't show enough with his books - £12,00 net). I have a small admin wage from his business of £5,400. No debts as such. So finding a mortgage for £55.000 is difficult, nearly impossible at the moment!

[Coutts 10]

No, my husbands business is not losing money, it is just because he doesn't show enough with his books - £12,00 net). I have a small admin wage from his business of £5,400. No debts as such. So finding a mortgage for £55.000 is difficult, nearly impossible at the moment!

 

You need to put your best foot forward. Like everything in life, money talks and you have some. Get a good aggressive broker who will make sure the borrower understands that you are zero risk because of your equity position. So not only do you want, nay demand a mortgage but also require their best rate to reflect your no nonsense position, or you will walk. If you only want to borrow £55K to buy a £145K house you should have no problem at all. You're zero risk. MMR can kiss your behind. Cash is king.

[Cyclone 10]

In what way are they zero risk? Having equity doesn't mean you can afford the mortgage.

 

What will "walking" achieve, it's exactly the same position as now, no mortgage. Hardly going to upset the place that is currently refusing to give them a mortgage anyway.

 

Cash in this case is in the hands of the lendee, and it is king. If they won't lend it then the posturing you suggest is worth than useless.

[L00b 441]

You need to put your best foot forward. Like everything in life, money talks and you have some. Get a good aggressive broker who will make sure the borrower understands that you are zero risk because of your equity position. So not only do you want, nay demand a mortgage but also require their best rate to reflect your no nonsense position, or you will walk. If you only want to borrow £55K to buy a £145K house you should have no problem at all. You're zero risk. MMR can kiss your behind. Cash is king.

Cash is king if you don't need to ask for some more for a deal. Don't know about your maths, but I call the above a £55k risk, not a 'zero' risk

 

The OP is in a strong position as regards the equity (£90k) in the £145k house, no doubt, and that is a very positive factor.

 

But if the OP cannot show sufficient evidence that they can afford to repay £55k over the term (e.g. 20 years), the above counts for not-a-lot.

 

Even though, in a worst case scenario, the house could be repo'd, sold for £145k (let's say), the £55k mortgage repaid, and the OP end up with £35k cash (simple figures). Because, with a repo, the mortgagor will not have made the expected profit on the deal, and incurred a ton more overheads than initially factored.

 

The taps have been well and truly tightened over the past few years. Oh btw OP - as and when you find a mortgage, get a fixed rate over the longest term you can/can afford.

[Coutts 10]

This is a slam dunk for any half decent broker, however, this forum is probably not the place to find one. Just post your position and request on any of the major UK money forums and I'm sure someone suitable will be get in touch with you.

[Cyclone 10]

I'm intrigued as to how you know that they can afford the 55k mortgage required when the OP has told us not a lot about income or expenditure.

[Coutts 10]

I'm intrigued as to how you know that they can afford the 55k mortgage required when the OP has told us not a lot about income or expenditure.

 

"I" don't know if they can afford it, and if I was lending them the money I wouldn't care because they're putting up £90K on a £145K asset so they're zero risk, the lender can't lose if they pay or default. Even though MMR is the "new" thing, the bank still has the final word on how stringent they will be. So if the OP is a good existing customer, has never missed a payment previously and has that kind of LTV on such a low amount of borrowing, any bank who doesn't want to throw away good customers and meet target is going to sort them out. Their monthly payments will be so small affordability won't be a concern to the bank, not at this level and their equity.

[L00b 441]

<...> if I was lending them the money I wouldn't care because they're putting up £90K on a £145K asset so they're zero risk, the lender can't lose if they pay or default.<...>

That would be contingent on how profitable a bank expects the deal to be over the term, which dictates whether to do the deal or not.

 

As previously posted, it's not about the asset value and LTV, it's about the profit level the bank expects to reach out of the deal.

 

A repo event and the subsequent sale kill that profit level with the overheads alone (i.e. the bank 'loses' the expected profit).