Mortgage question

[superdeano]

I'm trying to get a joint mortgage with my partner at the moment for our first home.

Been contracting for years and can evidence income/accounts/history/current contract/rate etc. - all good.

My partner was at home not earning when our kids were young up until about 18 months ago. She had 50% shareholding in the company, so was taking half the dividends. Now she's back working and has transferred those back to me.

Problem is lenders will assess my partner's current income, plus my share of income based on last 2 years accounts/tax returns - excluding the large chunk that was paid to my partner altogether - making us short on affordability.

I've spoken to a couple of lenders who've said "yes yes, that's very common, we've seen that before, but computer says no"

I'm speaking to a mortgage adviser, but does anyone have any experience of this situation? Are there any specific lenders that will consider the companies income, regardless how it was distributed between the 2 of us?

Extra frustrating since we'll be paying significantly less on our mortgage than we are in rent so can obviously afford it!

[GhostofTarbera]

Now she's back working and has transferred those back to me.

!

Give my regards to bubba in your prison cell


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[ladymuck]

Talk to a specialist broker like CMME or Freelance Financials

[superdeano]

Talk to a specialist broker like CMME or Freelance Financials

thanks ladymuck - will try them.

Give my regards to bubba in your prison cell

will do.

[GhostofTarbera]

thanks ladymuck - will try them.



will do.

Cool, as tax evasion

Don’t tell HMRC this sir


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[GigiBronz]

In this period of high uncertainty. Contracting is falling apart. Housing market shows some sings of accepting a correction.(Although probably still severely propped up)
Brexit and gov looking to totally reshape the economy.
And you are considering to take a mortgage at the limit of your affordability?

[sal]

Do this:

Talk to a specialist broker like CMME or Freelance Financials

Instead of this:

I've spoken to a couple of lenders who've said "yes yes, that's very common, we've seen that before, but computer says no"

And you will be fine. There are lenders that will lend based on your day rate (that's how I got my mortgage) and/or company accounts, not on your self assessments. In which case share splits etc. are irrelevant.

[amrhady]

I've gone with Halifax before, they are contractor friendly and based it on day rate.

Natwest are also contractor friendly, but they have a rule about you owning 100% of your company.

A lot of mortgage advisors will be able to provide you with lending criteria that banks have for contractors.

[WTFH]

Have you got a healthy deposit?
By that I mean > 10%, and ideally >35%