How is the borrowing criteria calculated for 90% mortgages?

[goldvelvet]

We want to get a mortgage on a new property which is 50% LTV but will be trying to get it on just dh's wages he's self employed so a lot of expenses go through the books (all legit) But this can make his earnings appear less than they are. His net profit is coming up as almost half his gross profit, after tax and expenses deductions. He's now considering going back into employment to up our chance his salary would be about £38 k pre tax in employment. I work part time due to DC3 being a baby and earn a measly wage so no point me being added to the application.

I was wondering how 90% mortgages work as I can't understand how people are able to get these under the 4 x earnings criteria as an average 3 bed where I live is around 200-300k plus. And most people don't tend to have two adults in full term employment with a joint income of 50-70k. (possibly just the people I know as they all have kids)

we have 185k deposit and are looking to borrow the same again but I really doubt that this is going to be achievable? We have 3 dc's, money on credit cards (which will be cleared before applying) and credit score is coming up as "very good".

If this doesn't seem bonkers then we'll approach a mortgage broker, if you think it's unachievable then we'll reevaluate the situation.

Income multiples mean nothing nowadays.

It's all about affordability - and not what you think you can afford - it's what statistics dictate you can afford.

3 children = reduced affordability

Debts = reduced affordability

SAHM = another dependant = reduced affordability

Having said that you have a big deposit.

Put your details into the online calculators for high street lenders and see what they say.

I have and to borrow that amount would mean repayments of between £450 (interest only) - £980 (repayments)

Which ironically a lot cheaper than it would cost to rent a 4 bed where I live. So the affordability argument seems so bizarre (although I understand it in principle).

But Dh's income agianst dependents equals a loan of about £120k so we are clearly way off the mark I was jus wondering if they evaluate the borrowing as whole, or is it very black and white? I don't remember the process of getting a mortgage being this hard before but to be honest I've never really been involved in much of the process. I have more free time than dh at the moment so am trying to get more involved this time around.

It's black and white in the sense that it is very specific. Each lender has their own criteria and they will judge your income and outgoings against it. When I was interviewed by my lender they wanted to know everything. Not just my regular income and outgoings but how much I had on deposit and saved each month, what insurance I paid out, estimates for irregular outgoings like holidays etc. Suggest trying an IFA because some lenders are less OK with self employment earnings than others