We have planning and originally wanted to get a loan to build most of our house up and livable. We were then going to sell our current house to either pay off most or ideally all of our mortgage! A plan that should have worked, except my husband got made redundant a few months before we got planning. He has only 8 months of accounts and not a huge income and I am not employed now either (bringing up children)
I have spoken to a couple of mortgage companies who will not touch us due to our lack of income! We are equity rich but basically poor.....lol! We have at least 150k equity in our current house and we own our plot outright which we have been told should be worth in the region of 150k - 200k. Is this enough to get a mortgage on in your view?
I was wondering if I could get a job for just for some pay slips to help?
Any advice would be greatly appreciated
Pre-credit crunch you may have been able to get a mortgage on the back of the equity with no income with some of the money borrowed to be used to fund payments for 6 or 12 months with sale of your existing property as the exit strategy. I dount any respectable lender would do this now due to regulatory requirments around affordability and responsible lending (which in itself seems pretty reasonable!).
I would be very wary of trying to pull the wool over a lender's eyes by telling them you are renting out your existing house when you aren't. If the lender becomes suspicious they could regard this is a fraudulent application and effectively blackilist you by sharing their concerns (quite legitimatley) with other lenders through fraud/data sharing arrangements. You agree to them doing this when you sign the mortgage aplication form.
Clearly a lot of self-builders do live on site and it seems you are having some planning difficulties with siting a caravan to do this. It sounds like you may be working, but not with enough income to get the mortgage you need? It does I guess depend on what income you have, how much you need to borrow, if you can persuade planning people to let you site your caravan - will finish this shortly - battery running out!!!
Edited by joiner, 03 November 2013 - 08:52 AM.
Joiner was not the OP and so edited out reference!