First Time buyers - Need Mortgage!!

marcovan

hello,

My girlfriend and I have put down the deposit (5%) on a new build flat. The final hurdle we now need to overcome is securing a mortgage. Move in date for flat is Nov/Dec.

Our financial situation is as follows: -

Price of Property: £136,950

Minus deposit & reservation fee we require a mortgage of £130k

My current salary is £24,250 and I also DJ at the weekends. The DJing earns me an extra £150 so I am assuming that could be considered an additional £7800 per annum (£150 x 52). Am I able to use the money I earn through DJing when we are making our application for the mortgage. I am able to provide receipts of proof of income as I am paid in cash.
Have been in my current job for 2 years and I have DJ in the same bar for just over a year now.

I have one credit card (£1,900) but I aim to have cleared this by November time.

My girlfriend has almost completed her Masters degree but at present she has 2 part-time jobs. If she was to stay in these jobs then that would bring in a combined wage of approx £6,000.

She has 1 credit card(£500) but again hoped to have paid it off before Nov/Dec.

With the figures in mind, do you think we would be able to secure a mortgage for our desired £130k??

Both of us have had no CCJ's and good credit rating. Hers being slightly better than mine as she has stayed with her parents all her life. I have been renting for the past 7 years so have had 2 or 3 different addresses. Been in my current flat for 3 years now though.

Will be grateful for any advice or suggestions anyone has.

Many thanks

Marc

herbiesjp

DO you have proof of the DJ income? Via payslips or accounts?

marcovan

Yes, I have receipts for each week that I play that could be used as proof of income.

marcovan

Just off the phone there to a broker based in Glasgow.....who claim to be a whole of market broker. Guy said that he could only find one lender that would be prepared to offer us the mortgage (couldn't disclose the information of the lender until we had become one of their clients). They charged a fee of £425. Told him that I was looking around still and didn't want to make a decision without talking to my girlfriend first and he started becoming quite pushy....telling me that I wouldn't find anyone else that would be willing to offer us this amount. And that most other brokers charge over £1000 for this kind of service. All sounded like bull sh*t to me.

What does anyone else think?

herbiesjp

Totally with your thoughts

Not all advisers charge a fee to begin with - your situation is not the easiest but I'm sure a good adviser will be able to help you find something

chriz1000

I’ve also heard stories where people pay up the broker fee just to find out there not actually eligible. Remember he won’t have done any credit checks on you and just because the company has pre-approved your circumstances, it doesn’t mean it’s guaranteed.

dizzyhead_2

contact london and country who martin recommends, they were very helpful to us.

susank

Would it not have been wiser to secure a mortgage with a top limit before committing to a property. I thought you needed to do this and therefore all the ins and outs would have been gone throught at that time. It may have been easier but at least you have till November to get sorted out.

marcovan

Yes I understand what you mean Susan and in an ideal world we would have done that. However, my girlfriend is finishing her university course next month so we are hoping she will get full time work in her chosen field. This of course, would make a huge difference when applying for our mortgage.

I know it is a bit of a gamble we are taking but we are very determined to get our own place.

homer_j_3

i understand why the adviser wouldnt disclose the information. I dont understand why they were so pushy though.

Fees are perfectly acceptable if you feel that you are getting value for service, however, I would never say pay these up front. If you dont want to pay fees, then find fee free. Simple as that really.

Do you tell the Her Majesty's Customs and Revenue about the money you earn from your 2nd job? If you dont, does the bar tell them and deduct the tax & ni etc from your money? Clearly the way and conditions that this money is received will be quite important.

Yo do have time before november and to be honest you shouldnt be in too much of a rush. If your girlfriend is gaining employment then hopefully this will help especially with getting the credit card repaid sooner

susank

Good luck to you both then and I really hope it works out well for you both - it will be worth the struggle in later years!