Mortgage help

[Misskittykat]

I have a flat that I bought outright as a gift from a relative. I’ve just started renting it out as my grown up son lived in it until last month rent free and I moved for work to rent in another area. Married now and we would like to buy. Been advised to borrow against the property I own but as it is higher than 5 floors high not many people will lend against it but I’ve been told it’s my only option as I am self employed. Not many people will loan against a property that is higher than 5 floors. Anyone with any ideas what options are available to me? We pay more in rent currently than any mortgage! Husband is PAYE

i'd go to an IFA and ask them to look into your options.

Is it that you haven't been self-employed long enough, they usually want a few years worth of accounts? Have you tried a mortgage broker?

I do know someone who had an issue selling a flat because of the same reason. But if you borrowed against the flat you rent out it would have to be a buy-to-let mortgage at a higher interest rate anyway, surely? See if a broker can help. Good luck OP, hope you sort something out.

it might be cheaper to just base the borrowing on your spouse's income, if that is from a more documented source? sometimes the 5x one income isn't far off 3.5x two incomes.

or you could look into a self-certified mortgage - which would have to be from an EU lender and has a lot of risks, but would only need to be for 2 years until you could provide sufficient accounts from self-employment to get a more standard mortgage?