Newb Mortgage question

rjs_252

Hey all, long time reader, first or second time poster (I forget which). I've just managed to get a job (3 months after finishing my degree) in Midsomer Norton, south of Bristol and Bath (and feel rather happy about it, as Bristol area is where I want to be, though my family home is only in Newport, South Wales anyway). Anyway, at the job interview the gentleman explained that the job would involve a lot of travelling, with the basic pattern being "spend two to three weeks a motnh away from home, then back for a week to write it up" (though most of it being UK travel its not as exotic as it could be!)

Anyway, onto the mortgage bit. As I'm expecting to be away from home for 3 weeks a month much of the time, I'm not excessively keen to be renting in the area for one week a month and obviously would rather get a mortgage and at least have my payments going towards a purchase. However, I'm unsure about whether I could get a mortgage as someone who's just graduated and not had an 'income' before. My mum suspects I'd have to do at least a year before I could even think of getting a mortgage, though she's not sure (23 years since she had to arrange one). I'm confident that I could scrape a deposit of 10% together (based on a flat valued at 69950 from RightMove) and using MoneySupermarket have calculated that the monthly payments over 20 years (not 25, as I was advised somewhere else on these forums) are about £500 a month, which is about the same or slightly less than I'd pay in rent.

However, I do still have my student loan to pay off (though using an online calculator I should earn 14,600 ish after tax/NI and student loan payments) and I don't exactly have a credit history otherwise (no loans, no overdrawns, no contracts I pay off monthly). So would there be a chance of me getting a mortgage now and if not, how quickly would I be able to apply? I guess taking out some form of monthly contract (possibly a phone, though I'm unsure if work would provide one) would help, but I don't particularly want to if I don't have to!

Anyway, sorry for the bable and thanks for any help in advance! Any more details please ask.

Salary: £19000pa, approx £14600 after tax/NI/SLC
Prospective price approximately 70k

beecher

Make sure that as well as your 10% deposit you have money to cover fees etc. Also make sure you can afford the payments if they go up to 10% or so, so as you're not overstretching yourself.

Do you have a probationary period? And is the contract permanent?

Get a hold of your credit file and see what that's like, and then go to see an adviser who can talk you through the process.

rjs_252

Yup, the contract is permanent (if it wasn't I'd not be asking to be honest ). There is a 6 month probationary period and after that period my wages will be up for review (hopefully up!:D). As for fees, I'd expect that to be about £1500 more on top? My parents are very good with this sort of thing (they paid their mortgage off a few years back) and I'm sure they'd be willing to lend a hand (if only to get me out of the house!).

Obviously I'd no expert about mortgages so I'm unsure what would happen if rates went up to 10%, as I'd be applying for a fixed rate mortgage (not making the same mistake mum and dad did with an endowment mortgage) and assumed (probably incorrectly) that the rate would stay, well, fixed. Please do put me right though.

How would I go about getting hold of my credit file (preferrably free)? After that my next step was to be to an advisor, so I'm right with you there! I just wanted a general consensus as to whether it would be worth my time, or whether youth/fact I'm starting employment, etc would absolutely rule me out.

Many thanks again.

beecher

I think you'll have to wait til your probationary period is over to be honest. Save what you can over that 6 months, and make sure your credit file is in order.

Have a look at

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

to find out about your credit file.

rjs_252

Much appreciated. Seems I'll be making a long trip into work for the next 6 months then! Thanks again!

geoffky

And when you do buy..factor in much higher payments in because interest rates will be going up and up some time and the long term average is high..