Probation and mortgage application

pledgeX

Evening all.

I'm in the process of looking at getting a house but have come across a potential stumbling block. I've been in my job a year and a half and have plenty of payslips etc. However, my girlfriend has been in her job for 3 months but her probation period is a year

We got a DIP from Northern Rock today but our broker mentioned they will need a copy of her contract to ensure she is not on a probation period, which obviously she is.

Is there any way round this?

I looked at this a while ago and am sure I heard it mentioned that as long as you've got 3 months payslips you should be ok, but now I'm not so sure.

The only questions on the NR application form we've been given are:
6. Is this employment permanent? If No: please tell us the date that the employment period will end
7. If your employment is on a contract basis, will your contract be renewed? If No: please give details
8 If your employment is not permanent, is it on a probationary basis? If Yes: please give details

In my opinion I would say that if you answer yes to question 6, then 7 and 8 are 'over-ruled' and not needed. As after all, her contract is permanent surely, so you'd tick yes for q6???

Will go back and ask the broker, but thought I'd ask here first to see if there's any sneaky tactics to get round this that the broker might not be too keen on??!!

Thanks for any help.

Wh05apk

If NR policy is that you can't be on probation, what do you want us to say "tippex" the out the bit about the probation?

IS your girlfriends income essential to the app? if so, then your broker needs to speak to NR regarding their policy, and/or find another lender sharpish who will accept her income.

pledgeX

Wh05apk wrote: »

If NR policy is that you can't be on probation, what do you want us to say "tippex" the out the bit about the probation?

IS your girlfriends income essential to the app? if so, then your broker needs to speak to NR regarding their policy, and/or find another lender sharpish who will accept her income.

No of course if it's in their contract that they want you to be out of your probation then it's game over, but as you mentioned it's worth talking to NR about their policy as from what I can see on the application form it seems a little vague.

That was more the angle I was going for, if someone has been in a similar situation and has already spoken to NR, or another provider, what did they say about it?

My salary on it's own would cover the mortgage and have a few hundred to spare, but that few hundred wouldn't cover all our bills etc so we'd have to rely on savings to some extent.

GMS

Exactly how is it vague? A permanent job means one which has no fixed end date, and most of these will come with a probationary period. Some do not hence the 2 seperate questions.

Did you tell your broker the job was subject to a probabtionary period or did you decide this was not relevant?

Some lenders will be ok with it.

To answer your question .... Will go back and ask the broker, but thought I'd ask here first to see if there's any sneaky tactics to get round this that the broker might not be too keen on??!!

Yes there are many, it is called mortgage fraud and the penalties can be severe.

Wh05apk

pledgeX wrote: »

My salary on it's own would cover the mortgage and have a few hundred to spare, but that few hundred wouldn't cover all our bills etc so we'd have to rely on savings to some extent.

If your salary is sufficient to cover the mortgage, then the lender may be prepared to lend just based on your salary?

kingstreet

Halifax criteria on the issue;-

Probation

A passes below 85% LTV - nothing required.

All B & C passes - if client is on probation, intermediary to obtain written confirmation from employer that job is permanent and end date of probation period.

Some lenders will accept it, some won't. Talk to broker. Don't consider anything "sneaky" as you'll get found out.

pledgeX

Wh05apk wrote: »

If your salary is sufficient to cover the mortgage, then the lender may be prepared to lend just based on your salary?

Would be possible but then the amount we could borrow would be halved surely? And that would then only buy us a caravan in this area

kingstreet wrote: »

Halifax criteria on the issue;-

Quote:
Probation

A passes below 85% LTV - nothing required.

All B & C passes - if client is on probation, intermediary to obtain written confirmation from employer that job is permanent and end date of probation period.


Some lenders will accept it, some won't. Talk to broker. Don't consider anything "sneaky" as you'll get found out.

Thanks for the info