All sorts of income - is anything possible?

WhatKatyDid_2

Hi all,

Just wondering - I would love to buy my council house (would probably cost me around £100,000 after the max discount) and have lots of little bits of income that add up to quite a reasonable amount! Mainly, wages £7500 pa (worked for the company for 2 years, but doing it on a 6 month at a time temporary contract so more flexible while I am a f/t student; child & working tax credits £8227 pa, child benefit £2124 pa, child maintenance £3640 pa (kids are 10, 13, 14 so got some of these bits for a few years yet). Also student grants & bursaries £10,675, making a total yearly income of just over £32,000 (!!!!) plus there is a student loan available to me £4400 pa....

Will have all credit cleared by spring (which is when I am thinking of putting in for it) so only essential monthly household outgoings & no council tax until after i graduate in 2009! Have given it much thought, affordability is no problem - it's simply if I can get a mortgage....

Thanks!

silvercar

you need to see a mortgage broker. Some lenders will consider all your bits and bobs (if i can call them that) others won't. Some lenders may be concerned that you are on a temporary contract.

If you can't get a lender that will consider your total income, you may be able to self certify, the rates will be slightly higher but you have more leeway with income streams.

Again a broker will be able to advise, make sure they are whole of market and preferably fee free.

MortgageMamma

Yes, you can get a mortgage for your purchase. Whether the maintenance can be used or not depends upon how long you have been receiving it and whether it is paid to you voluntarily or through csa/court order. Your child benefit is unlikely to be included and the student loan monthly payments would be deducted from your overall income when assessing your affordability so it is probably better not to do that. Much of whether this canbe done and with which lender/product depends on your credit status/history, and sme lenders will also wish to know what you are studying, when it finishes and what you intend to do for a living after your studies. the best way to purchase your house is by using a mortgage broker - if you go to most high street lenders you will be turned down due to how your income is made up.

Hope this is enough for you to go on for now

MM

WhatKatyDid_2

Thank you both for your speedy replies!

Re work, I have been with this company for the past 2 years, took a short break at one point & then went back to them; the "temporariness" (if there is such a word?!) is only on paper (and as secure as any other job, or not....) The workload is huge (& I am a valued member of staff :-))....). The company has gone from new to £6m turnover in just over 4 years! However, the MD would change it back to a permanent contract for me; that wouldn;t be an issue.

Student loans wouldn't be due for repayment until mid-2009 at the earliest when I graduate (as a Social Worker - please don't all groan.... I actually want to be of some help to someone). Maintenance is now paid through the CSA (since May) & has doubled from the voluntary payment I used to receive.

Credit history not bad (could do better...) in recent years, there are odd late payments here & there (by a day or so, aargh, stoopid me) over 6 months ago, but I am religiously paying everything on time & will have it all cleared by spring as well. :-)

I figured that would probably be the case with the high street lenders, just wasn't sure if it was at all possible with anyone else (in which case I was gonna save 3 years worth of the student money & then buy an Audi TT, lol!!)

Thank you again
Katy

MortgageMamma

Hi Katy

Sounds like you have it all well planned out in your head. You may not need a deposit to buy your council house - some lenders will let you borrow 100% of the discounted purchase price but you need to leave about 1k for solicitors fees and perhaps another 1k for lender fees. Your late payments are nothing really, if its just a month or less most lenders don't frown on this. There could be a high street lender willing to lend you, I dont really know enough about your situation to be able to judge I'm just trying to give you a bit of generic help. Looks like your CSA payments could be taken into the equation if the right lender is approached.

And as for being a social worker, I think thats a great thing to do and you shold be commended - if you can make a positive difference to just one persons life its a job well done. I get judged by my job too, but unless anyones ever tried it they can't imagine how rewarding it is! Good luck with your studies.

MM

Conrad

Just to add, some council property is an issue for some lenders, particularly lenders that take clients who dont 'fit the mould'.

Concrete in particualr is a big issue. Another problem property feature is flat roofing. Furthermore some lenders will not lend in areas where a more than 25% of the stock is still council owned.
To be clear the high st lenders tend not to be so fussy about the property asset as they are MORE fussy about the client!
Hopefuly none of this will apply to your home.

WhatKatyDid_2

MortgageMamma, thank you - i have read loads of your advice to others in the months I have been lurking on this site, lol - and yes, i have given this a huge amount of thought. I will have about £12,000 or so by next April in my hand, so that will be extra for fees, and to put towards purchase or a conservatory! (Desperate for extra space with 3 growing daughters...) The whole job/house thing is for long-term security for all of us :-)

And cheers Conrad, concrete & flat roofs don't apply, but the large majority in my area are housing association, so I'll remember to mention that to a broker.

Anyone recommend any good fees free whole-of-market brokers in Eastbourne, lol?!!

AndrewSmith

Don't know about any brokers in Eastbourne but I know a chip shop that serves deep fried mars bars. (Inlaws live in Langney)

MortgageMamma

Hi Katy

I know a fantastic broker who could work for you over the phone, although he's not too far away - he is fee's free and whole of market but makes his fee's up by insisting his clients provide him with tea and cakes. Would you like me to email you his details?

WhatKatyDid_2

Langney - me too!! Which chip shop....???? Bang goes the diet again!

And yes please, MM, that would be great - tea & cakes also not a problem in this house.... current favourite peach upside down cake :-) Made, not bought by the way - also into the oldstyle moneysaving boards....

MortgageMamma

Hi Katy

pls see your Private Message box

Good luck chuck

MM