Advice needed please.

Mac13

I've been reading the forums for sometime but this is my first post and I really need some help.

I'm in the process of separating after 18 years of marriage.
We have only £3500 left on the mortgage, and he is planning to buy my half of the house. I will be walking away with a lump sum of £120k to use as a deposit and to cover all my costs.

I am concerned about being able to get a mortgage because I only earn £13.4k and have only been in the job for four months - I will get a permanent contract at the beginning of August. (In addition I broke my wrist 3 weeks ago and am off sick for at least two more weeks.)

Can anybody please advise me as to whether I could apply for a mortgage now, or will I have to wait until I have a permanent contract, and also how much I am likely to be able to borrow.

(in addition to my wage I should get tax credits of about £400 per month, and a similar amount in maintenance payments for the children)

herbiesjp

You can start looking now for mortgages.

The amount of mortgage will depend on the LTV - which we can only work out based on a house value - do you have an idea as to what prices you would be looking at?

The tax credits will be taken into account, however the maintenance will not, until it has started to be paid (and most lenders will want to see a court order confirming the award).

However, you need to look carefully at affordability in order to make sure that any mortgage you do take out, will not put you and your children in financial trouble.

Mac13

Thank you for your reply.

I am looking at houses up to about £175, but hoping to find something for a bit less - although there is nothing suitable currently on the market for less than an asking price of £179.

Are there any particular lenders I should be looking at?

herbiesjp

Mac13 wrote: »

Are there any particular lenders I should be looking at?

Impossible to say based on the few lines of information above.

You would need to speak to lenders directly, explaining in full the situation, but without running any credit checks.

Or, go via a broker, who will be able to do all the leg work for you.