Lender is very picky

swingjune

Hubby is in IT and earns 50k a year. His company is doing very well and it issues shares and bonuses to its employees. With a mortgage of 55% of the purchase price, the monthly repayment will be 40% of his take home pay.

We thought we should be the last persons that the bank should be worried about. Apparently, we were wrong.

The 1st lender, Woolwich turned down our application because hubby works less than a year in the company. :mad:

Our independent mortgage broker got our application successfully with the next lender, Halifax.:T:j

What is your experience?

happybroker

Is your husband self employed or if a director what is his shareholding?

Toughluck

Wouldn't have thought it would be too much of a problem for you getting lending, but as happybroker said his employemnt status may force you away from some lenders. I assume no adverse credit for either of you?

Welcome to the world of lenders deciding who they do and do not want!

dunstonh

certain occupations are higher risk and some may raise an eyebrow when IT is mentioned as its a job of high turnover, short contracts etc. Add in less than one year of employment and a small number of lenders may decide they are not interested in the current climate.

Some lenders are cherry picking at the moment but it doesnt mean they all are. In years gone past, lenders didnt like going above 30% of income.

swingjune

Hubby is a software developer and he is on permanent full-time employment with a technology PLC. Basically, he is an employee of a MNC. His company give employee shares and profit-sharing (bonuses) to all their full-time permanent employees. Hubby receive 15% of his annual earnings (employee shares + bonuses) on top of his base pay. His company business is not affected by the economy slowdown and continue to make handsome profits.

So, he is not self-employed and he is not on temporary contract.

We have no kid and no debt. After the mortgage repayment, we could save 1k every month. At the end of each year, we could do a 10% redemption on our mortgage. At this rate, we could see ourselves mortgage free, hopefully in less than 10 years time.

Ah well, I think it is Woolwich lost and Halifax gain:T

happybroker

I think halifax rates are lower anyway aren't they? If not Woolwich ask for 6 months in current job and 18 months continuous employment