Please help re mortgage situation

Lucy B

Hi all, long time browser.
Really really need some help and advice. We have been renting our house for 4 and half years from a developer. They are now putting huge pressure on us to buy. We are, we hope about 6 months away from being able to apply for mortgage.
My husband is self employed, earns around 50k a year. We have been paying all bills and rent through his account for the last 6 months, have managed to save 6k while paying our rent of 650. What we need to do in the next 6 months is save the rest of our deposit, which would be another 10k. We will be able to do this ok. And we need to lodge all our cash into dh's account. To show the bank that we can live after paying our bills rent saving. As he is self employed, if I need to go grocery shopping, I just use cash, it would never get lodged to the bank, so it's things like that, that we need to change.We are hoping to get mortgage of 160000 and aiming for deposit of 16000. I am sahm, so no childcare. We don't owe anything. Credit card cleared 6 months ago. Both good credit history.
What are our chances of being approved?
We are going to meet with financial advisor/broker this week hopefully.

Thanks.

Zamboni

Lucy B wrote: »

Hi all, long time browser.
Really really need some help and advice. We have been renting our house for 4 and half years from a developer. They are now putting huge pressure on us to buy. We are, we hope about 6 months away from being able to apply for mortgage.
My husband is self employed, earns around 50k a year. We have been paying all bills and rent through his account for the last 6 months, have managed to save 6k while paying our rent of 650. What we need to do in the next 6 months is save the rest of our deposit, which would be another 10k. We will be able to do this ok. And we need to lodge all our cash into dh's account. To show the bank that we can live after paying our bills rent saving. As he is self employed, if I need to go grocery shopping, I just use cash, it would never get lodged to the bank, so it's things like that, that we need to change.We are hoping to get mortgage of 160000 and aiming for deposit of 16000. I am sahm, so no childcare. We don't owe anything. Credit card cleared 6 months ago. Both good credit history.
What are our chances of being approved?
We are going to meet with financial advisor/broker this week hopefully.

Thanks.

You are under no pressure to buy.
You need to save the remaining deposit before worrying about if the bank will give you approval.
Keep clean bank accounts until you have loan sanctioned.

Your husband will need to produce goods records of his self employment.
If I read your post correctly you are using cash from his employment directly on groceries - leaving the taxation ethics aside - he needs to be properly recording this information.
You say he is on 50k - Has he declared this to the Revenue? Because this is what the bank will want to see.

I had to google DH and SAHM - keep your weird trendy lingo for facebook

Lucy B

Thanks for reply, he is tax compliant, pays tax every year. What I meant was we could have been handling our day to day living better, as in being able to show to bank exactly what our money is being spent on.
We are being put under pressure, they have issued us with a termination of lease. We only have until end of October before we have to vacate house. They have hinted that if we can show we are trying to get mortgage ready then they will let us stay until January. We have 2 children, one in school here, and we don't want to take him out of the school he is in if we gave to move. He is very settled there. There are currently no decent places to rent in our area.
So stressed from all of this.