First time buyer noob

jnote

Hey guys!

Spent all day reading up about all my options. Wow! So after reading the guides and loads of posts and such, shall start ringing some brokers tomorrow. I'm sure they'll answer most of my questions but thought I'd see what you guys thought too.

Here's my situation: FTB, joint application(me & partner), up to 50k deposit.

I am self-employed. Will have 4 years of books when year ends in April. How do they average it out? I have an average wage, over the 4 years, of about 37k. My 2nd year only made 22k as I went travelling for 7 months. I also only work 8 months a year as I have other(non-paying) projects I dabble in. Will they take these kind of things into account? ie. That my earning potential could be much higher then 37k? I'm guessing not!

I have good credit according to my report that I read earlier. Zero debts. Late payment on £5 on my credit card over a year ago and haven't registered on electoral roll ever. So not too bad for me.

My gf is a dental student. She makes about 10k from part time job. 16k student loan. Obviously she will start to make a proper wage in 2 years time when she graduates. Will they take this into account? Or is it literally our wages right now?

So what do you guys reckon we could borrow? From the quick forms I've filled out on several websites, it varies from 150k to 290k!? That's quite a swing.

Also, I take it having my gf is an asset to application, even with her only being a student right now? Or might it be worth getting quotes by myself(and we work it out privately)?

Any guidance, help, advice, jokes, etc you guys can provide would be great!

I apologize ahead of time if this is the bazillionth time you've heard some of these q's!

And if any of you work for a bank...love you guys

VIGILANT22

Quote: And if any of you work for a bank...love you guys

Are you mad?....you've not been reading enough!
Going to a bank for a mortgage is like going to a Honda garage for a car, you have no choice over the brand and on many occasions you dont see a mortgage adviser you see a "customer service adviser"!!
When arranging to meet with an adviser you want family/friends/colleagues to refer you to a whole of market mortgage adviser
I think you should get yourself on the electoral roll asap
As for taking what your gf will earn in 2 yrs time, no they wont take that into consideration neither will they consider your earning potential could be higher...lenders deals with facts

Wutang_2

jnote wrote: »

Hey guys!

Spent all day reading up about all my options. Wow! So after reading the guides and loads of posts and such, shall start ringing some brokers tomorrow. I'm sure they'll answer most of my questions but thought I'd see what you guys thought too.

Here's my situation: FTB, joint application(me & partner), up to 50k deposit.

I am self-employed. Will have 4 years of books when year ends in April. How do they average it out? I have an average wage, over the 4 years, of about 37k. My 2nd year only made 22k as I went travelling for 7 months. I also only work 8 months a year as I have other(non-paying) projects I dabble in. Will they take these kind of things into account? ie. That my earning potential could be much higher then 37k? I'm guessing not!

I have good credit according to my report that I read earlier. Zero debts. Late payment on £5 on my credit card over a year ago and haven't registered on electoral roll ever. So not too bad for me.

My gf is a dental student. She makes about 10k from part time job. 16k student loan. Obviously she will start to make a proper wage in 2 years time when she graduates. Will they take this into account? Or is it literally our wages right now?

So what do you guys reckon we could borrow? From the quick forms I've filled out on several websites, it varies from 150k to 290k!? That's quite a swing.

Also, I take it having my gf is an asset to application, even with her only being a student right now? Or might it be worth getting quotes by myself(and we work it out privately)?

Any guidance, help, advice, jokes, etc you guys can provide would be great!

I apologize ahead of time if this is the bazillionth time you've heard some of these q's!

And if any of you work for a bank...love you guys

They will not take your non-taxed income into account (what is it by the way? drugs?). They will not take your girlfriends potential one-day-I will-get-a-job income into account. They will be decidedly unimpressed about the electoral role sitution - get on it, They will take your girlfriends debt into acount and she owes more than she earns. And what is a 'noob'? All the best

jnote

Thanks guys!

Firstly, the bank statement was only a joke! I will talk to a few whole market brokers like L&C, etc. I have done research into a bunch with the best word of mouth.

My gf's loan is a 'good' student loan. In other words she doesn't have to start paying on it till she earns over 20 k a year.

We will be moving house this week so I was waiting till move to get on electoral roll. We are looking to buy in about 6 months to a year, so hopefully that would improve our credit score with the electoral roll side.

Lastly, I am not a drug dealer. Though working in television might be seen by some as dealing a drug to the nation

So am I being crazy thinking we could get a 200k or more place?

By the way, we have also applied to all the government part buy schemes, eg homebuy, first time buyer initiative, etc. So any advice on them would be great too.

Thanks again

jnote

By the way a noob is a newbie. Or one who has just started his mortgage journey and can be told how silly his aspirations are

jnote

Ooh having scoured the boards for Homebuy schemes, they don't seem that popular! We live in London though so it might be our only choice if we want to stay central?

Matty0682

I am the Sole Director and employee of my own Ltd Company. I have only been trading for 22 months and am going through the process of buying a house and have only recently got a mortgage in principle.

I informally approached a few mortgage providers, and I most have a minimum requirement of 3 years accounts so you are ok..

Barclays/HSBC were happy to use my first year LTD trading history (they took my net earnings from my tax return), and they also considered my salary (P60’s) for the previous 2 years where I had a permanent job. So basically, they require 3 years of earning history.

I approached Barclays/HBSC as I have my main accounts with them, they know my history so it made it easier. Bearing in mind my application looked a safer bet as I only required a mortgage for 2 x salary with 60% LTV. But you also have a low LTV.

jnote

Thanks! Well chatted to a couple brokers and looking pretty comfortable to get 200, and with good credit up to 250k which is great!
Tell me if I'm correct here. If we decided to leave the country in a few years and wanted to rent out we'd have to switch to a buy to let mortgage then switch back if we moved back? Just trying to cover all angles!
Also if we get a 2 bed and we felt like renting a room is there anything special we should be looking at?
Thanks.

Purpletopaz

Hi

Just wanted to add that i have an old student loan form 1995/6 and same as you GF dont have to pay back till over a certain amount, so have deferred every year. The Mortgage advsisor was not even intrested in it, we went through Barclays, he said they dont take student loans into account, but I showed him my latest statment on the safe side.

Good Luck

jnote

Thanks all