FTB Help...

Fcukstard213_2

Ok so i'm completely new to the mortgage scene. And want to know where i stand..

I'm a FTB as stated in the title and have just got my first job after finishing University. With OTE i should achieve a yearly income of £19k to £20k comfortably a year.
I have previously had a student loan but i have paid this off already after saving all through University, and have only ever been in my agreed overdraft a few times. I have no CCJ's etc or any other loans.

Im looking at houses in the region of £120k - £130k and have a deposit of £40k I also have savings/investments/shares totaling over 39k. With a further 5k to pay for fee's and new furnishings etc.

First question - will a mortgage lender even look at me as i've only just started my job.
Second question - (it may seem silly but) is the higher the deposit the better? Leads on to my last question
Last question - Does it benefit me to keep my 39k shares and investments incase of redundancy or any misfortunes (my job is in a secure industry.. but you never know!)

So where do i stand? Any help is appreciated!
Simon

Berkshiregirl

What's your basic salary (ie without commission)? They don't count commission as guaranteed earnings, so you wouldn't get 3 or 4 times that figure, more likely up to 4 times your base plus 1 times your OTE. Although having said that without proof of what OTE you've been earning (as you're just starting your job) they may not even accept that.

With the deposit of £40k you're looking at a mortgage of around £80k, so even at 4 times salary you'd need a £20k base on the face of it.

Fcukstard213_2

My basic will be 14k..
Would a self certify mortgage help? Or is this a no no?

herbiesjp

Does those savings/investments provide any kind of income?

You are looking at high multiples based on the basic salary you have

You have a great deposit - Could you maybe look at £120k properties but put in lower offers, to reduce the mortgage needed?

Fcukstard213_2

Some of the investments will be turning into cash this September 09. Some are shares (not doing so well) so am not sure if i should sell or keep - something i can talk to edward jones about.
There is potential for me to put offers on houses under £120k, but will i not always find this a problem if i have a low basic salary?

herbiesjp

Fcukstard213 wrote: »

There is potential for me to put offers on houses under £120k, but will i not always find this a problem if i have a low basic salary?

If you purchase at a lower price, then the mortgage needed is lower, and the income multiples needed will also be lower.

The most you could get would be around £70k I think - and that is 5 times your basic salary.

Not many lenders will go that far, and will need a squeaky clean credit history

Fcukstard213_2

In this case is it worth me checking me credit history? And how clean is squeeky clean! hehe

Mrs_Bumble

As it is your first job can I ask if you are on probation? If so how long is the probationery period?

Yesh it would be worth you checking your credit history, always better to check for skeletons lol!

Berkshiregirl

Is it imperative that you buy now? £14k doesn't go far, and while I'm sure you will earn commission, it's not guaranteed. I myself left uni and went into a £15k role with commission, and there's no way I could have afforded to buy somewhere. It's great that you've got so much money saved up, but perhaps you should look into renting for a while while you get used to working full-time without tying yourself into a huge mortgage?

herbiesjp

Fcukstard213 wrote: »

In this case is it worth me checking me credit history? And how clean is squeeky clean! hehe

Squeaky clean means just that - no CCJs, no defaults, no missed or late payments

Fcukstard213_2

Mrs_Bumble wrote: »

As it is your first job can I ask if you are on probation? If so how long is the probationery period?

Yesh it would be worth you checking your credit history, always better to check for skeletons lol!

There is no probation period.
And i'm pretty sure the credit check will be clean. I've never missed payments on anything, or been overdrawn apart from my agreed overdraft limit.

I agree 14k wont go far, but i will be splitting bills with a girlfriend. Every little helps i suppose.