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So yes, I currently have my own flat - I have approximately £150k equity and am planning to sell it next year.
It gets complicated, because originally I was going to downsize to a little one bed flat and would need no mortgage BUT I have had a change of heart and would like a little terraced house, so I will still need a small mortgage, for sake of argument between £25-50k.
So why is that complicated? Well, I work in a corporate role and already know that I am likely to be made redundant in February (and that actually works well for me, as I will explain), so come May/June I will have left with some money from my employer and be going full-time in my own business.
I have been running my business part time for a year, so it will be another couple of years until I have 3 years accounts. So, if I stayed in my current flat then it wouldn't be problematic but if I sell which I plan to, then I obviously don't have much proof of earnings in the interim. I am 51 years old, so not a problem for age. Although if I was 56/57 then I could access some money from my pension and not need a mortgage.
So of course my dilemma is that whilst I know I can afford such a small mortgage because I know what my business earns, I can't prove it to a bank/building society. I don't have family with assets that could easily be used as guarantor, as parents on a small pension and whilst they don't have a mortgage, I don't think this is much use (as obviously I will have a big chunk of equity in the house I will be buying).
Any ideas or is it impossible without me getting someone to act as a guarantor, or in fact lend me the money - I will have the same problem with a loan, as I know I will be made redundant. Of course I could easily buy said terraced house on a Buy to Let mortgage, as I will have 80+% deposit! but then I presume I couldn't let to myself, I am sure I have seen it can't even be family.
It feels silly as within 5 years will have a lump to pay off anything outstanding and I can afford in the meantime, just hard to prove. I mean I could buy it - let it as a proper buy to let and rent a small place in the interim (but that seems silly and not ideal) - in 2 years I will have accounts so could get a normal mortgage then. I realise that anyway I do may have a higher interest rate but it will only be on a small mortgage, so really I don't mind - I understand risk vs reward. Is there something I am missing?
Many thanks
It gets complicated, because originally I was going to downsize to a little one bed flat and would need no mortgage BUT I have had a change of heart and would like a little terraced house, so I will still need a small mortgage, for sake of argument between £25-50k.
So why is that complicated? Well, I work in a corporate role and already know that I am likely to be made redundant in February (and that actually works well for me, as I will explain), so come May/June I will have left with some money from my employer and be going full-time in my own business.
I have been running my business part time for a year, so it will be another couple of years until I have 3 years accounts. So, if I stayed in my current flat then it wouldn't be problematic but if I sell which I plan to, then I obviously don't have much proof of earnings in the interim. I am 51 years old, so not a problem for age. Although if I was 56/57 then I could access some money from my pension and not need a mortgage.
So of course my dilemma is that whilst I know I can afford such a small mortgage because I know what my business earns, I can't prove it to a bank/building society. I don't have family with assets that could easily be used as guarantor, as parents on a small pension and whilst they don't have a mortgage, I don't think this is much use (as obviously I will have a big chunk of equity in the house I will be buying).
Any ideas or is it impossible without me getting someone to act as a guarantor, or in fact lend me the money - I will have the same problem with a loan, as I know I will be made redundant. Of course I could easily buy said terraced house on a Buy to Let mortgage, as I will have 80+% deposit! but then I presume I couldn't let to myself, I am sure I have seen it can't even be family.
It feels silly as within 5 years will have a lump to pay off anything outstanding and I can afford in the meantime, just hard to prove. I mean I could buy it - let it as a proper buy to let and rent a small place in the interim (but that seems silly and not ideal) - in 2 years I will have accounts so could get a normal mortgage then. I realise that anyway I do may have a higher interest rate but it will only be on a small mortgage, so really I don't mind - I understand risk vs reward. Is there something I am missing?
Many thanks
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