A well respected, award winning social enterprise
Volunteer run - Government and charity funded
We help 50,000 people a year through divorce

01202 805020

Lines open: Monday to Friday 9am-5pm
Call for FREE expert advice & service info


What are we each entitled to in our divorce settlement?

What does the law say about how to split the house, how to share pensions and other assets, and how much maintenance is payable.

What steps can we take to reach a fair agreement?

The four basic steps to reaching an agreement on divorce finances are: disclosure, getting advice, negotiating and implementing a Consent Order.

What is a Consent Order and why do we need one?

A Consent Order is a legally binding document that finalises a divorcing couple's agreement on property, pensions and other assets.


Do you need help sorting out a fair financial settlement?

Our consultant service offers expert advice and support to help you reach agreement on a fair financial settlement quickly, and for less than a quarter of the cost of using a traditional high street solicitor.


mortgage capacity

  • blaikie61
  • blaikie61's Avatar Posted by
  • New Member
  • New Member
More
06 Jun 12 #335321 by blaikie61
Topic started by blaikie61
Can anyone help? I have been asked by the mediator to establish my mortgage capacity. Self employed sole trader small preschool Earnings for 2001-2010 25K 2010-11 24K 2011-12 12K the reduction in earnings is due to recession, tempoary move to alternative venue which unnerved customers and son being diagnoised with cancer last year and me having to spend alot of time away from the business. I cannot see an immediate return to previous earnings and feel I should disclose by lowest earnings so I do not end up taking on a mortgage I cannot repay. Obviously STBX thinks I should disclose the prevoius amounts.

  • cookie2
  • cookie2's Avatar
  • Platinum Member
  • Platinum Member
More
06 Jun 12 #335323 by cookie2
Reply from cookie2
Mortgage capacity means how much a bank will lend you. Generally they will lend 3.5x your (current) income.

  • blaikie61
  • blaikie61's Avatar Posted by
  • New Member
  • New Member
More
06 Jun 12 #335326 by blaikie61
Reply from blaikie61
STBX wants me to use previous accounts as it increases my mortgage capacity and deminishes my arguement for a larger proportion of the equity of the MH when it is sold.

  • cookie2
  • cookie2's Avatar
  • Platinum Member
  • Platinum Member
More
06 Jun 12 #335338 by cookie2
Reply from cookie2
Your mortgage capacity is how much a bank will lend you. Would a bank go back 2 or 3 years and lend you an amount based on your income back then? I doubt it. Although, I am no expert on getting a mortgage when self-employed.

  • dukey
  • dukey's Avatar
  • Moderator
  • Moderator
More
06 Jun 12 #335357 by dukey
Reply from dukey
I am and always have been self employed, well for most of the last twenty odd years, lenders tend to want the last three years accounts to take an average though in this recession they seem to be focusing on the last years accounts, the chances are most main stream lenders will be using the lasts years income to give a mortgage potential, take care with early redemption fees and the size of deposit needed, I ended up paying close to a 25% deposit despite the oh we can do it for 10%.

Make a few online applications and print them off for the mediator.

Moderators: wikivorce teamrubytuesdaydukeyhadenoughnowTetsSheziLinda SheridanForsetiMitchumWhiteRoseLostboy67WYSPECIALBubblegum11