Mortgage advice

itsrachelhere

Hi there,

Just wondering if any knowledgeable people can help me!

We might be relocating soon due to my husbands job. In theory we are in a very good position as we own a £120 130k house outright, plus have other money which would bring us up to around £270k total (i.e. combining that money and the house).

If we moved, its likely to be to quite an expensive area, and we would be looking at a house of around £400k minimum, so would be after say a £140k mortgage. Now, here comes the problem! I am on a salary of £27k, my husband most likely around £25k, meaning we should be able to borrow something around £200k. However, my work is contract related - at the minute I only have a contract up until begiinning of next year, whilst this will be a new job for my husband, after just completing a course. I have concerns that this would mean neither of us could take out a mortgage as he wouldnt have been in work long enough, and obviously I am only fixed term (sure it will be continued, but I know mortgage lenders dont work on 'sure it will be fine'!)

Now, obviously we will be borrowing a lot less than we already have to put into the house, meaning that if something we to happen, the bank could be assured of getting their money back. I am just wondering if anyone knows that because of us having a much higher deposit than what we would be borrowing, that mortgage lenders would still be prepared to give us a mortgage?

Thanks in advance!

GuidoT

If you have a large deposit then lenders will look on your more favourably for the reasons you have grasped.

Some lenders do factor in how long you have been employed, but it is one of a variety of factors and not in my view a critical one.

To my mind you should be fine obtaining a £140K mortgage on a property of £400K with circa £50K of income.

itsrachelhere

Thanks for your help. Might chat with our bank and see. I know I am preapproved a large loan with them already, so hopefully would be ok!