Advice on friend+the potential of mortgage please?

buel

Hi, i believe my friend+his gf's chances of getting a mortgage are slim. Please can i have any other opinions? They have £12,000 saved, he's worked at his place of work for 7 years+survived redundancies before Christmas+earns £20,000. His employers are struggling to pay for the basics (drinking water, steel, consumables etc) She is working on a temporary contract but full time+has been taken on for a further 9months.

CloudCuckooLand

Of course they can get a mortgage. £40k should be no problem.

Of course they may want more than that..?

buel

The house price they are looking at is around £100,000. They have averagely decent credit records but he doesn't have a credit card or phone contract. His gf has been with her current employers for around 6 months. There is a possible addition to the deposit of maybe another £10,000 from their family! Would any potential mortgage provider find out about his employers recent redundancies?

Thrugelmir

Rather than worry about a lender finding out "redundancies". The concern should be whether it is advisable taking on a large financial committment at the current time. Perhaps better to wait a few months, continue to save. Then see if the employment situation is secure.

buel

I have to say i really loved the quote about the ipod. I couldn't agree more!!
Unfortunately, for the last year i've been trying to persuade my friend to put the £12k in ANY sort of interest paying a/c/ISA rather than the 0% HSBC account they use but they refuse to.

buel

Thrugelmir, i agree 100%, that was just an additional question.

beecher2

If your friend doesn't follow your advice to move his savings to an account which gives interest, I doubt if he'll listen to any advice you give him about his mortgage. Best thing to do would be to give him the details of a mortgage adviser, and let them sort it out.

buel

Hi, thanks for that. I think, mainly, i was after confirmation that my friend would struggle to get a mortgage for the amount he wants....unless perhaps his parents act as guarantors?

kingstreet

I'm with Thrugelmir.

No way should this couple be thinking about buying now.

And his parents would be certifiable if they thought acting as guarantor was a good idea in these circumstances.

Wh05apk

Shouldn't have any problem getting the mortgage he wants, off course, more concern, is whether he should if his employer is currently struggling, having no job is bad enough, trying to find a mortgage payment as well, will be even worse.

buel

i bloomin well know but he/they just wont listen!!
Just out of interest, what is the multiple of a couple's joint earnings that is usually provided by the mortgage provider?