How long will mortgage application take? Anyway to fast track it?

lucycann

Hi,

I have seen a property I want to buy at £120,000 I have £32,000 in savings but only want to put enough in to make it (£24,000) 80%ltv to keep some as a safety net.

I earn £26,000. Would be sole application. I have a about £1800 left on a car loan which i think finishes in about 12 months. ( I know I should pay it off!) Never missed a payment and have had 2 previous joint mortgages which never missed a payment and now paid off with sale of house etc.

However, I have accepted a new job which i start in mid march. My question is do I have to wait another 6 months before applying for a mortgage? Could i get mortgage agreed before I start? My new salary is £22,000 shock horror why am I moving.... Well by moving I will be saving about £450 a month in petrol and it is a bigger company etc etc.

I want an interest only mortgage, Plan to use ISA.

If I wait until I move jobs and have to wait 6 months I will have to try and find a lender who will do 4.5 x salary as if I apply now it is about 3.7 times.

How fast will the application take? Are some quicker than others, can you fast track them?

I have only just had it confirmed from the local council I will be registered on the electoral role as of 1st march this year :-( they ‘lost’ my first form!

Also, tried the compare websites, etc any tips on the best providers for 80 % ltv interest only 3 year fixed, at 3.7 times salary.

Currently paying over £800 a month in rent and council tax so cant wait to buy!!

Thanks

Lucy

beecher2

You'll need to tell the lender that you've handed your notice in and will have to tell them about the new job - they'll find out when they contact your employer anyway, so trying to hide it is a waste of time. Why not move to a cheaper property or share for a while? I don't really understand the rush to buy.

lucycann

Because I have 4 dogs and trying to find a rental property with one dog is like hens teeth let alone 4 rotties.

As I will be working in the same industy would that have a positive affect if I disclose my potential change of job?

Are there fast track applications?

My current employer wouldnt have to tell the provider I am changing jobs would they? I thought they purely confirmed salary and length of service? (It is a family run business so they wouldn't, but I want to make sure it is all above board)

Plus my rental property is up in 3 months and they are insisting on a 12 month contract which I do not want to sign into and having spent 2 months looking for another rental property with no luck and have been wanting to buy for about the last 8 month as I hate renting.

beecher2

lucycann wrote: »

My current employer wouldnt have to tell the provider I am changing jobs would they? I thought they purely confirmed salary and length of service? (It is a family run business so they wouldn't, but I want to make sure it is all above board)
.

Yes they would have to tell the lender that you've handed your notice in.

Staying in the same industry would have no impact on a lenders' decision - they'd look at your salary, and if you had a probationary period. Some might want you to be in the job for 6 months, others wouldn't. Your salary multiple and the fact that you want interest only means that your application isn't straight forward.

Go to see a broker, and be up front about your change of job. Not telling the truth in a mortgage application is fraud so you need to be honest.

Wh05apk

Unlikely the lender would contact your employer, if they did, the employer would confirm you have resigned, but that is not the point, you should declare your position to the lender who will base it on your new job, and more than likely then require you to wait out any probabtion. Based on your new salary, you will be stretching your income.

If you are looking at interest only, most lenders will only do if you are under 75% LTV.

Thrugelmir

How you propose funding the repayment of the mortgage through an ISA? Do you have a plan as to much you intend investing every month?

Wh05apk

Thrugelmir wrote: »

How you propose funding the repayment of the mortgage through an ISA? Do you have a plan as to much you intend investing every month?

About as relevant as "what colour do you intend to paint the kitchen?"

The issue is the OP is changing jobs, and taking a pay cut, which the lender will not like, how she intends to repay the mortgage at this stage is irrelevant.

Thrugelmir

Wh05apk wrote: »

About as relevant as "what colour do you intend to paint the kitchen?"

Not at all. There must be a line of thinking behind the OP's statement. Hence my question. As the purpose of this forum is to debate, and hopefully inform and educate.

lucycann

Wh05apk wrote: »

Unlikely the lender would contact your employer, if they did, the employer would confirm you have resigned, but that is not the point, you should declare your position to the lender who will base it on your new job, and more than likely then require you to wait out any probabtion. Based on your new salary, you will be stretching your income.

If you are looking at interest only, most lenders will only do if you are under 75% LTV.

I was looking at ING direct or Post office? They do 80% ltv interest only or am I missing something?

If I submitted an application with either, how long until they approved or declined?

Plus, as it is a family business i have not handed in my notice, i have purely been offered another job, surely if I choose to accept the job after the mortgage offer has been approved I am well within my right to do so? The same as if I decided the day after completing on the house to quit my Job?

It is mad that it is easier for me to get a mortgage, in a job which costs me £450 a month in fuel, let alone extra wear on car etc and yet a job which will leave me better off about 2 streets from the house would be stretching my income!

L x

lucycann

Wh05apk wrote: »

About as relevant as "what colour do you intend to paint the kitchen?"

The issue is the OP is changing jobs, and taking a pay cut, which the lender will not like, how she intends to repay the mortgage at this stage is irrelevant.

The £400 a month I would be saving from renting is a start, then the £60 reduction in council tax, £10 a month saving in car insurance moving to a nicer area, that is before cost to car and other savings.

beecher2

lucycann wrote: »

surely if I choose to accept the job after the mortgage offer has been approved I am well within my right to do so?

In your original post you stated that you'd accepted the new job and have a starting date so this isn't really relevant. You have to be honest with your lender - anything else is fraud.