Home report value/house price, mortgage advice

[zarasdancing]

Hello,

My husband and I have saved £18k so far and looking to buy our first house in the next 6 months, in Scotland. At the moment we have no expenditure at all as living rent free in his parents house. However my husband has become self employed and I have also recently started my own business alongside my full time job and we both only have about 9 months worth of accounts. Will this prove difficult for us to get a mortgage? A house I like has recently come on the market at £190,000 (guide price for auction), home report valued at £250,000. If we got the house at this price this would mean we could get a 74% mortgage? Is this right? Would we on top of this be required to put down 15-20% deposit as well?

Any advice would be greatly appreciated.

[brian]

Banks traditionally want to see 2-3 years of accounts - if you don't have those then you may find you have to go the self-cert route, though supply here may be very restrictive.

Also note that property prices in Scotland have been falling, and a lot of properties have not sold for a couple of years - but are still carrying a home report value from a couple of years previous when the market was more bouyant.

[Miles78]

They want to see a minimum of 2 years accounts unfortunately.

[zarasdancing]

Thank you both for your reply. The home report is dated September 2010, so it is current. So does that mean we cannot buy a house until we have accounts for two years? How do you self-certify? Thanks again for your help.

[brian]

You're going to need to speak to a mortgage broker - I don't believe high street lenders offer self cert mortgages at present, so you'll need an advisor with access to subprime mortgages.