Fist time buyer: when can i get a mortgage?

alexnotts

Ok, I'm looking to buy a new build house due to complete in September on the homebuy direct scheme of a value about £135k. I have done some basic internet searches and the repatment mortgages that show up i can afford.

However, I have up til now, not much of an employment history and am currently unemployed, however I start work on a permanent, well paid contract at the end of august.

So my question is - am i likely to get a mortgage, or do you have to build up a certain amount of time in work and payslips etc. or can I just go ahead and get a mortgage now as when i am due to repay i will be working. I've signed contracts and can prove my salary.

I've got no defaults or anything too, but at the same time i wont have much of a credit history - i use my credit card only every 2-3 months.

What are the rules? Any ideas?

beecher

Is there a probationary period in your new job?

alexnotts

No, no probationary period. The contract does not specify any probabtionary period nor does it specify a contract length.

betmunch

The rules are different for each lender on what they will require from you. Some will require a long work history, some will not, you just have to ask.

Just out of interest, which lender would you be putting your application with if you applied right now, ignoring the issue over work history?

alexnotts

Hi, I've only been searching online so far and have used money supermarket just to get an idea of if i will be able to afford a mortgage on that value property.

On money supermarket ive put in my soon to be salary and outgoings and it came up with various offers.

I guess these rates could change depending on my credit rating and also my lack of work history, making it more expensive? In addition, im not paying a deposit, just taking out a 90 odd thousand mortgage on a 135k house, so maybe that will affect things too!

I have no idea where to start in looking for an IFA or mortgage provider!

beecher

alexnotts wrote: »

I have no idea where to start in looking for an IFA or mortgage provider!

Ask friends/family for recommendations, or see if your new empoyer recommends someone.

Make sure you can afford mortgage repayments at over 8% as a safety net, rather than budgeting on the rates as they are now. Also factor in how much rent you'll pay, and if it is the First Time Buyers' Initiative, how you'll pay the shared equity loan.

betmunch

I wouldnt bother with moneysupermarket, as it will not allow for the complexities of the homebuy scheme.

Just check with any fees free broker, if you dont know of any then ask at your local estate agents if they have a mortgage broker in house.

Cheers

vicshippers

It might be a condition of the mortgage provider that you pay a deposit of your share. ie your 70% share of £135k is £94.5k - they might ask for a deposit of £9500. I know Woolwich do this...you will also need to prove you have £3k for moving costs, do you have this tucked away somewhere?

alexnotts

I've got enough to cover the mortgage costs.

Its likely that my salary will not allow me a mortgage of 94.5k anyway so a deposit may be needed whatever they say, however I can 'get' that amount of deposit to make up for it, and maybe take out an 85k mortgage.

I'll phone that London and Country place today and find out if i have a chance or am just dreaming.