Self employed mortgage - amounts have dropped

[Plumpingthepillows]

A year or so ago, I spoke to an IFA about the amount of money I could potentially borrow to buy somewhere. Based on my self employed earnings of around 25k a year, it worked out to be around £100k.

Move things forward and I've just tried the mortgage calculators on both TSB and Nationwide and it's coming out as £45k to £60k .

I've got no idea why the amount has dropped so dramatically - is it to do with the MMR, does anyone know? I'm now getting very worried about it in case I can't get a mortgage.

Thanks.

three times earnings
yup, that is the rule now : based on 3 years self assessment returns

Lloyds have capped mortgages and now the deputy gov of b of e is saying interest rate rises are probably the only thing which will cool the market. I have a friend used to write for major broad sheet economist and he says we are being prepared for a crash in prices

I have just sold but the agent said the fever at the beginning of the year has really cooled and they are not busy at all now. I am in the SE.

Can I ask do they average out the last three years returns to find an "average income"?

We're about to move and we are just taking our morgage with us. But they view it as a new product, we do get to take our interset rate, but we need to do the whole application process again. When we got this morgage (12 years ago) it was a form filled in over the phone which took about 15 mins. We've been told that the process will be a 2 hour interview this time.

I would o back to an IFA as they can generally get you a better deal. Mine did. When I remortgaged in Feb 2013, after divorce, I was able to borrow £89k on approx £20k including self employed earnings and tax credits and maintenance and I had only been fully self employed for a year.

My IFA got me a much better mortgage than I could get myself.

Thank you Iseenyou.

As our interest rate is ridiculously low we do want to stick with the bank we are with, rather than use a broker. Will be interesting to see what happens.

My IFA talked it up a bit, persuaded them to accept to years employed income and one year self employment.

Not all will accept WTC income. I'm with Santander and I think Nationwide do too.