Hi,
First post, I've searched many forums and websites but can't seem to find any solid information on this subject. I'm posting this thread in the hope someone may be able to help me directly.
I'm self employed with a business income of around £2000 per month. I've never been a home owner before but my partner has, so we will not be benefitting from a first time buyers mortgage. My business is in its infancy - I don't even have 12 months accounts yet, so my income will probably be disregarded by a mortgage lender. My partner earns £38,000 per year, so her income is the strongest in terms of lender security.
We are looking to buy a £240,000 house with a 10% deposit. This means we will need to borrow over £200,000, more than my partners income would allow but less than our combined income would secure once I have mature accounting records.
However; my parents are business owners earning around £7500 per month and have offered to act as guarantors. Their business is a very unique model in an industry called network marketing, something which confuses a lot of people. Their business has been established for over 20 years within a global corporation which has been established for 30 years and turns over $2.5 billion dollars a year - it's a secure income, but one that needs consideration to understand.
My parents are in their 60's and 70's. Their income is paid as a royalty every month, averaging £7500. They do not pursue the business much any more, but their income still comes in. This income is an owned assett and is not limited to their lifespans, it is willable in full, which it is, to my brother and myself on a 50% each basis should they pass away.
My question is as follows:
- Do mortgage lenders accept guarantors over 70 if their income is a residual business income as apposed to a employed wage?
- Is their a way of taking special income streams and unique circumstances into account when applying for guarantor mortgages?
- Would the assets and future inheritance of an applicant be taken into account when assessing lending amount and risk of a mortgage?
I'm really struggling with this. An independent financial advisor informed me he couldn't advice me on a situation he does not fully understand - immensely frustrating.
In simple terms - wealthy older parents offer to secure a mortgage with their income, an income which will be available long after they have retired which would ultimately be inherited by the mortgage applicant after the parents pass away. Can this be used to guarantee a mortgage for someone with a weak financial position?
Thanks in advance for any help,
Rich
First post, I've searched many forums and websites but can't seem to find any solid information on this subject. I'm posting this thread in the hope someone may be able to help me directly.
I'm self employed with a business income of around £2000 per month. I've never been a home owner before but my partner has, so we will not be benefitting from a first time buyers mortgage. My business is in its infancy - I don't even have 12 months accounts yet, so my income will probably be disregarded by a mortgage lender. My partner earns £38,000 per year, so her income is the strongest in terms of lender security.
We are looking to buy a £240,000 house with a 10% deposit. This means we will need to borrow over £200,000, more than my partners income would allow but less than our combined income would secure once I have mature accounting records.
However; my parents are business owners earning around £7500 per month and have offered to act as guarantors. Their business is a very unique model in an industry called network marketing, something which confuses a lot of people. Their business has been established for over 20 years within a global corporation which has been established for 30 years and turns over $2.5 billion dollars a year - it's a secure income, but one that needs consideration to understand.
My parents are in their 60's and 70's. Their income is paid as a royalty every month, averaging £7500. They do not pursue the business much any more, but their income still comes in. This income is an owned assett and is not limited to their lifespans, it is willable in full, which it is, to my brother and myself on a 50% each basis should they pass away.
My question is as follows:
- Do mortgage lenders accept guarantors over 70 if their income is a residual business income as apposed to a employed wage?
- Is their a way of taking special income streams and unique circumstances into account when applying for guarantor mortgages?
- Would the assets and future inheritance of an applicant be taken into account when assessing lending amount and risk of a mortgage?
I'm really struggling with this. An independent financial advisor informed me he couldn't advice me on a situation he does not fully understand - immensely frustrating.
In simple terms - wealthy older parents offer to secure a mortgage with their income, an income which will be available long after they have retired which would ultimately be inherited by the mortgage applicant after the parents pass away. Can this be used to guarantee a mortgage for someone with a weak financial position?
Thanks in advance for any help,
Rich