mortgages and self employment advise please

[Guest kelv&haley]

my brain is spinning with too many question so im hoping someone out there can answer at least part of my question(s).......thanks

been here 7 months hubby been employed continuously since,we have the 10 % deposit needed plus fees to buy but here's the tricky bit,and im not sure of any answers............

1.when i put in our household income into the mrtgage calculators(just the ones that pop up as advertising and on real estate.com) the borrowing capabilities are soooo low,but many friends with similar incomes,same number of kids have all had 'no worries' in getting a mortgages,why????whats the secret???

2.is there a common calculation to obtain borrowing figures ie x amount times annual income???

3.although hubby is employed right now,he may be changing to self employed ,what implication will this have if we dont buy property before he goes self employed???? ive heard 2 years tax returns???but say for example hes been working solidly employed for 1 year,we find a house 2 or 2 months after he goes self employed is it 2 years tax records from that point???? basicly his employed job isnt gonna last forever and in his trade most jobs are on abn,we dont think we can buy quickly enough to do it before he goes self employed,so will we have to wait 2 years from this date.

sorry if that was confusing,hope you understand what im asking,and thanks in advance to anyone who can offer some input,haley xx:confused:

[Guest ade&emma]

Try giving Andy Williams a PM. He sorted out our morgage and really knows his stuff. Makes it all a lot less confusing.

[Riponian]

I agree we have asked Andy many questions and he is very helpful and puts it into plan english.

 

Good luck

Michelle

[Guest Damien]

I'm self employed, the financial advisor said he would need 12 monhs accounts to give me a mortgage.

 

Damo

[Guest back clan]

My OH has just gone self employed and we have been told 12 months accounts

[kjc79]

i was told 1 year by some advisers/banks and 2 years by others. thought there was no hope but spoke andrew williams and our house is nearly built. I do have 2 employed partime jobs just for the mortgage at the min but my last tax years 10 months takings i think got taken into account too.

 

i'd try and get a mortgage whilst you have employed work befrore the costs go up and up, as long as all the payments are made i wouldnt see a problem after that what he does in 1/6/12 months time?? it would be in the same trade most likely??

 

good luck

 

(if im wrong please advise )

[Andrew from Vista Financial]

my brain is spinning with too many question so im hoping someone out there can answer at least part of my question(s).......thanks

been here 7 months hubby been employed continuously since,we have the 10 % deposit needed plus fees to buy but here's the tricky bit,and im not sure of any answers............

1.when i put in our household income into the mrtgage calculators(just the ones that pop up as advertising and on real estate.com) the borrowing capabilities are soooo low,but many friends with similar incomes,same number of kids have all had 'no worries' in getting a mortgages,why????whats the secret???

 

It would also depend on what interest rates were when your friends took out their mortgages, due to the way borrowing capacity is calcualted here when interest rates rise borrowing power reduces. Every Bank have a different method and this means that the ranges vary greatly between lenders, Commonwealth this time last year were very generous now they are one of the lowest.

 

 

2.is there a common calculation to obtain borrowing figures ie x amount times annual income???

 

No, as stated ranges can be vast.

3.although hubby is employed right now,he may be changing to self employed ,what implication will this have if we dont buy property before he goes self employed???? ive heard 2 years tax returns???but say for example hes been working solidly employed for 1 year,we find a house 2 or 2 months after he goes self employed is it 2 years tax records from that point???? basicly his employed job isnt gonna last forever and in his trade most jobs are on abn,we dont think we can buy quickly enough to do it before he goes self employed,so will we have to wait 2 years from this date.

 

It will depend on circumstances, in general it is 2 years required but there can be ways to work around this sometimes.

sorry if that was confusing,hope you understand what im asking,and thanks in advance to anyone who can offer some input,haley xx:confused:

 

 

 

Hi kelv&hayley

 

I have attempted to answer some of your questions above in red, feel free to contact me if you would like to ask anything further.

 

 

Regards

 

 

Andy

[Guest smit]

in my experience its easier to get mortgages whilst employed.........they like guaranteed income. Since Ive been here ive gone self to employed and back to self. and recently asked how much i could borrow to bid on a house at auction. Bizarelly (sp) she had to work out on my old employed tax return even tough i earn about 30% more now being self employed. speak to a cou[le of financial advisers.