Mortgages & child maintenance

Jewel_2

Can anyone help?

My partner and I have the following income situation:

Partner: 2 jobs, one is a Director and the other is a manager of a large organisation.

Me: Child maintenance (about to be supported by a court order) plus visiting lecturer contract (ie, termly contract but not permanent).

Between us we have a relatively good income.

Which mortgages would take all of the above into consideration when using the mortgage multipliers? By the time we need a mortgage we will also have no debt and very good credit ratings, apart from electoral registration.

I have looked at various mortgages but I am very confused!

Thanks for any help!

herbiesjp

What kind of figures are you looking at?

Jewel_2

My partner earns £41,000 gross in his Director role, and £19,000 gross in his management role, both are permanent positions and he has been in employment for 7 years and 3 years respectively.

I have a 7 year old, and my child maintenance is £12,000 net per yer. My lecturing contract brings in about £9,000 gross per year.

We would have about £90,000 deposit. We have no adverse credit other than I have paid credit cards late (by one month occasionally) but this has not happened for the last year - we have always paid on time.

My partner is not on the electoral register, but I am.

I just wondered what amount we could realistically borrow (we would be fine making repayments, I was interested in multiples).

MortgageMamma

Hi Jewel

Not all lenders work using income multiples. some of the assess on affordability and often in situations like yours you can borrow more than what standard multiples allow. You will have no problem with obtaining a mortgage just because one partner is not on the electoral register, what you may find is a problem is unless the maintenance is awarded via the CSA it might not be taken into account by a lender. ANother aspect is that often when two people co-habit/marry the childs father gets to pay less maintenance, which I hope will not be the case for you, but without adding your maintenance you could get £310,500 assuming you have no credit commitments. Adding the deposit to that takes you to the 400k mark.

Jewel_2

Thank you - the child maintenance agreement will be made outside of the CSA so that's very useful information; it may be worth not considering this as that would be an ample amount to borrow.

herbiesjp

I think MM beat me to it.

I think that basedon the figures you are indeed looking at the purchase prices already quoted.

However, as you say this is aa ample amount to borrow,, I would err on the side of caution and look at the figures closely to make sure that affordability is right for at the mortgage amount/purchase price you are looking at.

We all know that just because you can get a £300k mortgage does not make it right for you on affordability grounds.

HTH

Jewel_2

Yes, I think you are right about being able to afford this. The other option would be to maybe put down a smaller deposit/smaller mortgage and buy a buy-to-let as well as an investment - would this be quite easy to do? Is it 25% deposit you need for this?

Also, my lecturing contract is not a permanent one - I get termly contracts for the work I decide to do. Work is quite easy to come by but I didn't know whether lenders who look at affordability would also take this into consideration.

Jewel_2

Oh ... and also would lenders see both of my partner's incomes as the same? Don't lenders use the first one in full but see the other one as 'other income'?

MortgageMamma

Hi Jewel

Your salary will be considered, as there are lenders willing to consider contractors and lenders that will fast track your application with minimal or no income checks if your borrowing requirements are less than 75% of your proposed property value. There is a lot more to it than crunching numbers. Have you made an allowance for stamp duty and legal fee's?

I would recommend you speak to a whole of market mortgage advisor, who will tell you the best way around this and find a lender who will accept your income.

MM

Jewel_2

I don't agree with stamp duty!!! But I suppose I would have to pay it! What are the rates, isn't it 3% or something ridiculous?

herbiesjp

Jewel wrote:

I don't agree with stamp duty!!! But I suppose I would have to pay it! What are the rates, isn't it 3% or something ridiculous?

£125k - £250k = 1%
£250k - £500k = 3%
£500k and above = £4%