Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • MarthaP
    • By MarthaP 13th Oct 16, 7:07 PM
    • 3Posts
    • 1Thanks
    MarthaP
    Urgent Advice Please - FTB 5% Deposit
    • #1
    • 13th Oct 16, 7:07 PM
    Urgent Advice Please - FTB 5% Deposit 13th Oct 16 at 7:07 PM
    Hello All,

    I would really appreciate your advice. I have found a perfect home and would love to put an offer in on it, however I have only a 5% deposit. I have used the eligibility calculator on a couple of sites and at the moment Santander is coming up with the most generous offering (more than I need to borrow). Next month I have a salary increase from £35K to £45K, and £45K is the salary I have been entering, since the current homeowners aren't looking to exchange contracts until April/May next year and therefore my salary will be £45K and will have been for 3 months. If I enter £35K into the eligibility calculator, they aren't estimating a high enough lend for me to put an offer on the home.

    So my question is, how do I proceed at my mortgage application interview on Saturday? Do they take your current situation into account or the situation you will be in at the point of contract exchange? I don't know if it's worth putting in an offer now and waiting until next year to apply for the mortgage instead?

    Any advice gratefully received.
Page 1
    • AnotherJoe
    • By AnotherJoe 13th Oct 16, 7:24 PM
    • 4,195 Posts
    • 4,214 Thanks
    AnotherJoe
    • #2
    • 13th Oct 16, 7:24 PM
    • #2
    • 13th Oct 16, 7:24 PM
    If your sellers are happy to accept your offer since you are willing to wait so long, I would just hold off getting a mortgage arranged until you have three months payslips at your new salary.
    If you apply now the pool of lenders would be very small as you are not on the higher salary needed, and you might also find your mortgage offer expiring before you were ready to exchange.
    • muhandis
    • By muhandis 13th Oct 16, 7:49 PM
    • 231 Posts
    • 87 Thanks
    muhandis
    • #3
    • 13th Oct 16, 7:49 PM
    • #3
    • 13th Oct 16, 7:49 PM
    Please note that you do not necessarily need to have 3 months of pay on the new salary before applying for a mortgage. One salary slip at the new pay will suffice for many mainstream lenders.
    • amnblog
    • By amnblog 13th Oct 16, 8:56 PM
    • 8,859 Posts
    • 3,374 Thanks
    amnblog
    • #4
    • 13th Oct 16, 8:56 PM
    • #4
    • 13th Oct 16, 8:56 PM
    Why are you worrying about this now when nothing concrete can happen for six months?
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • kingstreet
    • By kingstreet 13th Oct 16, 9:47 PM
    • 30,030 Posts
    • 15,965 Thanks
    kingstreet
    • #5
    • 13th Oct 16, 9:47 PM
    • #5
    • 13th Oct 16, 9:47 PM
    the current homeowners aren't looking to exchange contracts until April/May next year
    Originally posted by MarthaP
    Are you sure?

    You would usually find a vendor wanting to exchange contracts early but not complete until that time next year.

    Is there a newbuild somewhere in the equation? If there is, it's exchange in 28 days, complete when the builder says so...
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,847Posts Today

6,562Users online

Martin's Twitter