help required!

kirstyb_2

Hi, does anyone know of any decent mortgage lenders who will lend to a graduate on a probtionary period. My sister is doing her probationary year in a secondary school but as yet has no contract of employment for the following year (these posts have not been advertised yet). She is certain that she will definitely get a job the following year as there is a massive shortage of teachers in her chosen subject. However, is it possible to get a mortgage on this basis? Unfortunately, no one is in a position to act as a guarantor for her at the moment. Any guidance would be greatly appreciated

Debt_Free_Chick

Usually, no. Mortgages are basically income based and if there's any uncertainty about future income, then the lender will decline. Also, your sister should be concerned about paying a mortgage without certainty of future income. She might be "certain" of getting the job, but does she know all there is to know? Are there others who might be suitable? If the job is advertised, will there be better applicants? Surely, its all a bit ... um ... uncertain?

Out of interest, why is a mortgage so desperately needed now? There will be houses for sale for years to come and the property market is not forecast to increase dramatically (if at all).

kirstyb_2

I agree it's not an ideal scenario. However, she knows that even if she doesn't get a job she will definitely be able to get teaching supply work (she's already been offered this) She has already had an offer accepted on a flat, but there has been a delay as the front door to the flat does not comply with planning regulations (the flats in a conservation area). She has an agreed mortgage but its in my dad's name on a buy to let basis. However, unfortunately the terms are pretty poor.

Debt_Free_Chick

Aaahhh I see.

Yes, buy to let is generally not as good as a "normal" mortgage and almost certainly not as good as a first time buyer offer.

I'm sorry, but I think she has limited options without a predictable income stream. A specialist lender or broker may be able to help but, again, she won't get the best deal.

What sort of deposit does she have eg. 5, 10 or whatever %age of the price? There might be some options if she has a 15% deposit.

Could she not be persuaded to wait and see what happens on the job front? Some people think that property prices will fall - even a little. Few think they will rise by much, if at all, except in certain "property hot spots". Sorry not to be more positive :-(