Self build mortgage brokers

[ragg987]

9 minutes ago, scottishjohn said:

prove definitively your wife is not going to have kids

Is that legal?

[Amateur bob]

11 minutes ago, scottishjohn said:

and unless you can prove definitively your wife is not going to have kids --when her income will likely stop --  you stand a dull chance 

go ask them --put if off and save some more is the answer as you have the plot 

and who knows what brexit will do to interest rates ??

If i were you  I would using the extra time for lots of planning AND  not jumping just now

too many variables ,or just get planning --

do the founds  with the money you have to start with 

 

yes ive thought about mabye just starting with the 100k and tryingto get to wind and watertight but many on here suggest they are LESS likely to lend me money if ive started?

[scottishjohn]

6 minutes ago, ragg987 said:

Is that legal?

not a clue,

but it something i would be considering if i were the lender --and its just another reason for them to say NO

-legal or otherwise,common sense says you should be thinking of that anyway 

same as i would always got for a 50year old woman to employ rather than a 25year old --as an employer its costs a shed load of money when you have deal with maternity problems in small biz 

 

Edited June 3, 2019 by scottishjohn

[andyscotland]

35 minutes ago, Amateur bob said:

slight problm ive only been a partner in business for one year and only on small % although i withdraw more than my %, wife is on 20k salary would this be enough to cover the 100k id need to borrow?

 

Agree with advice from others, but also - I'm self employed and when we went for a (normal) mortgage in the early days of my business they classed me as a dependent and reduced my wife's income to account for her "supporting" me. Even more mad as she'd only been in her job for 3 months and was earning less than me, but 3 payslips was fine where 2 years of accounts wasn't!

 

In the end managed to speak to an underwriter and agreed that if the business stopped making money I would be taking over the childcare. So although they knocked off for my food and lodging, they added back on the nursery fees we were paying at the time so we were able to borrow what we needed.

 

I suspect therefore even if you just borrow against her salary you'll need to prove at least some income of your own to show you're not a drain on the family finances.

 

That said we were never asked about pregnancy plans - not sure if because we already had 2 or because they don't/can't take that into account.

[ultramods]

7 minutes ago, ragg987 said:

Is that legal?

It will be post Brexit  

 

 

[Jeremy Harris]

I'm pretty certain that no lender can apply any form of sexual discrimination, including penalising anyone on the basis that they may become pregnant.  Employers aren't allowed to do this, and I strongly suspect that lenders aren't either, it's just one of those risks they have to accept.

 

 

[ragg987]

Just now, ultramods said:

It will be post Brexit

Oh so still a few months / years / decades - get that application in pronto !

 

Looks like they cannot ask questions that violate the Equality Act - https://hoa.org.uk/2018/02/mortgage-when-pregnant/

[Amateur bob]

2 minutes ago, andyscotland said:

 

Agree with advice from others, but also - I'm self employed and when we went for a (normal) mortgage in the early days of my business they classed me as a dependent and reduced my wife's income to account for her "supporting" me. Even more mad as she'd only been in her job for 3 months and was earning less than me, but 3 payslips was fine where 2 years of accounts wasn't!

 

In the end managed to speak to an underwriter and agreed that if the business stopped making money I would be taking over the childcare. So although they knocked off for my food and lodging, they added back on the nursery fees we were paying at the time so we were able to borrow what we needed.

 

I suspect therefore even if you just borrow against her salary you'll need to prove at least some income of your own to show you're not a drain on the family finances.

 

That said we were never asked about pregnancy plans - not sure if because we already had 2 or because they don't/can't take that into account.

could i just show the amount im drawing each year (15k) rather than profits as im only really entitled to a small % of the profits?

[scottishjohn]

3 minutes ago, JSHarris said:

I'm pretty certain that no lender can apply any form of sexual discrimination, including penalising anyone on the basis that they may become pregnant.  Employers aren't allowed to do this, and I strongly suspect that lenders aren't either, it's just one of those risks they have to accept.

 

but they do not have to give reasons for not making a loan to to you-so you will never know 

Edited June 3, 2019 by scottishjohn

[andyscotland]

2 minutes ago, Amateur bob said:

could i just show the amount im drawing each year (15k) rather than profits as im only really entitled to a small % of the profits?

 

As far as I know, it's generally drawings they're interested in. I know at the time I had left some profit in the business for a rainy day and the adviser said it would have been better to have paid it as a dividend and put it in a savings account of my own to show it was "mine".

 

A friend of mine went for a self-employed mortgage not that long ago and they were mostly interested in the income and dividends he'd declared/paid tax on.

[Ian]

5 minutes ago, Amateur bob said:

could i just show the amount im drawing each year (15k) rather than profits as im only really entitled to a small % of the profits?

You’ll need to give them 3 years of audited accounts. They will be interested in your audited earnings from the business (drawings are not relevant)

[Amateur bob]

1 minute ago, andyscotland said:

 

As far as I know, it's generally drawings they're interested in. I know at the time I had left some profit in the business for a rainy day and the adviser said it would have been better to have paid it as a dividend and put it in a savings account of my own to show it was "mine".

 

A friend of mine went for a self-employed mortgage not that long ago and they were mostly interested in the income and dividends he'd declared/paid tax on.

if its drawings theyre going by i could use that 15k then? ive only been 1 year in the business though?

[Jeremy Harris]

2 minutes ago, scottishjohn said:

but they do not have to give reasons for not making a loan to to you-so you will never know 

 

Given that anyone could legitimately request their credit file, and challenge anything on it that isn't either correct or lawful, I doubt that any lender would be stupid enough to reject an application on any potentially dodgy basis.

 

When Santander withdrew our mortgage offer, I used Experian to check that what Santander had told me was true, and as it turned out it was both true and valid, in that their changed lending criteria (which were published) supported their position.  Anyone could do the same, and it's not expensive to do.  IIRC I subscribed to Experian, did the one check and then cancelled the subscription before the subscription payment became due (you get a free month, or did at the time I used them).

[scottishjohn]

I think we can go orund in circles with this for ever 

bottom line is  Go ASK

 

[Amateur bob]

1 minute ago, Ian said:

You’ll need to give them 3 years of audited accounts. They will be interested in your audited earnings from the business (drawings are not relevant)

that means ill need to wait another 2 years then as ive only bn in the business 1 year

[andyscotland]

Just now, Amateur bob said:

if its drawings theyre going by i could use that 15k then? ive only been 1 year in the business though?

 

You'd be best asking a broker. I suspect if it's only one year that might be enough to show your wife's not bankrolling you, but not enough for you to borrow against. But I don't know for sure.

[scottishjohn]

1 minute ago, JSHarris said:

 

Given that anyone could legitimately request their credit file, and challenge anything on it that isn't either correct or lawful, I doubt that any lender would be stupid enough to reject an application on any potentially dodgy basis.

 

When Santander withdrew our mortgage offer, I used Experian to check that what Santander had told me was true, and as it turned out it was both true and valid, in that their changed lending criteria (which were published) supported their position.  Anyone could do the same, and it's not expensive to do.  IIRC I subscribed to Experian, did the one check and then cancelled the subscription before the subscription payment became due (you get a free month, or did at the time I used them).

 you carefully missed the point ,they do not need to say anything --just don,t offer you one

[Jeremy Harris]

Just now, scottishjohn said:

 you carefully missed the point ,they do not need to say anything --just don,t offer you one

 

 

They are obliged to give a reason for refusing credit, so they cannot just ignore that requirement.  As I wrote, in our case Santander did comply with the regulations and give their policy change as the reason, and this was confirmed when I checked (frankly I didn't trust them to tell me the truth, which is why I checked).

[Alex C]

My wife and I run our own small business. I have been through mortgage applications 4 times in the last 3 years and they always ask for company  accounts for the last 3 years as well as personal accounts. I suspect with less than 1 years accounts you could be stuffed but you will need to ask. When we needed to borrow money for our new build I had to plan 2 years in advance to make the books and our income suitable for borrowing the amount of money required. You are only young and I suspect need to be patient. Get planning, Save, save and plan until you are ready to put a spade in the ground.

[andyscotland]

10 minutes ago, scottishjohn said:

but they do not have to give reasons for not making a loan to to you-so you will never know 

 

True, but if it is unlawful (and I agree with @JSHarris it probably is) they'd be on a sticky wicket if they accepted evidence you weren't going to get pregnant then made a loan.

 

Either they secretly consider it and hope nobody ever detects a pattern/blows a whistle/checks their file - in which case there's nothing you can do - or they don't.

[scottishjohn]

1 minute ago, JSHarris said:

 

 

They are obliged to give a reason for refusing credit, so they cannot just ignore that requirement.  As I wrote, in our case Santander did comply with the regulations and give their policy change as the reason, and this was confirmed when I checked (frankly I didn't trust them to tell me the truth, which is why I checked).

difference is you already had   an offer that they withdrew 

not the same as not getting one to start with

next your going to tell me i have to give reason not to give someone a credit account with my BIZ

giving and recinding is not same as not offering 

 

 

[scottishjohn]

7 minutes ago, andyscotland said:

 

True, but if it is unlawful (and I agree with @JSHarris it probably is) they'd be on a sticky wicket if they accepted evidence you weren't going to get pregnant then made a loan.

 

Either they secretly consider it and hope nobody ever detects a pattern/blows a whistle/checks their file - in which case there's nothing you can do - or they don't.

a bit of commons sense +couple in 30,s ,no kids --the odds are pretty high they going to get some soon and if your close to the edge of the lending criteria ,then i have no doubt that will be looked at  in any final decision 

would it be any different than a mortgage provider insisting on life insurance of the bread winner?

so maybe an insurance policy against having kids?

any  way pretty sure a self build mortgage will be suing £2k a sq m  to decide if your figures are reasonanble for the build

Edited June 3, 2019 by scottishjohn

[Amateur bob]

5 minutes ago, Alex C said:

My wife and I run our own small business. I have been through mortgage applications 4 times in the last 3 years and they always ask for company  accounts for the last 3 years as well as personal accounts. I suspect with less than 1 years accounts you could be stuffed but you will need to ask. When we needed to borrow money for our new build I had to plan 2 years in advance to make the books and our income suitable for borrowing the amount of money required. You are only young and I suspect need to be patient. Get planning, Save, save and plan until you are ready to put a spade in the ground.

thats a problem, what about if i were to sell my house and buy a bigger one would they want 3 yrs company accounts for that too?

[scottishjohn]

2 minutes ago, Amateur bob said:

thats a problem, what about if i were to sell my house and buy a bigger one would they want 3 yrs company accounts for that too?

just money to them -.

 

[Alex C]

Just now, Amateur bob said:

thats a problem, what about if i were to sell my house and buy a bigger one would they want 3 yrs company accounts for that too?

Yes. 

 

I think you really need to firstly get some accurate costs for your build. I am sorry to be the one to break it to you but your not going to build a new house for 200k.

 

Secondly speak to a broker about borrowing money. 

 

Any bank or broker is more than likely going to want to see a break down of costs.