Mortgage Advice- Complicated by Fixed Term Contract

gingersnap88

Hello everyone,

This is my first post here, a friend recommended it to me for some good advice I'll try to keep it brief!

My partner and I are looking to buy our first home. However, we will only be able to put my name on the mortgage as he has a CCJ which still has a couple of years left on it.
I was left around £70,000 to my grandmother who passed away last year and am hoping to use this towards buying a place, especially as I won't be able to borrow so much on a single income. The problem however, is that my contact is fixed until next June and it will not be renewed. Although I am sure that I will find another job, this worries me, and I don't want to lie to the bank but I'm worried they will reject me. It's frustrating because the mortgage repayments will be much cheaper than our current rent!
I also have 45,000 Euros in a bank account in France which I can't access for a year, do you think I should tell the bank about this?
Lastly, as my partner has a CCJ and we can't put his name on the mortgage, will the bank consider his income as extra income as he'll be living there with me?

Sorry for the long post and silly questions, but I'm a complete novice at this and I've been too nervous to go into the bank with these questions incase they tell me to jog on.

Thank you

holly_hobby

Ok .. first things first...

Your contract
It ends next June - are you in a select profession ? i.e your qualifications and experience are highly sought after in the industry within which you work ?

What I am sayin is that a lender wants to know that any creditors financial position is sound enough to consistently support the repayments. Now, if your expertise is one where yes you are employed on a fixed contract, but that the availablity of contracts and work for what you do is really not in question - than that would go to present a viable proposition to the lender i.e when this contract ends in June its unlikely that you will be scrabbling about trying to find work. You get the idea.

Partners CCJ & Income
For your partners income to become part of the affordability assessment he needs to go onto the mge application. With a CCJ (not knowing how old, how much, what it is for - or the LTV you will be looking at), tis doubtful any high st lender will consider him. So for the moment work on you own income basis ...

Monies held in France
Irrelevant at this moment as you don't have access to them.

I know Halifax did used to look at fixed term contracts - they were pretty picky on the contract from memory - you could give them a call just to sound things out. The ending in June is a real problem, that you shall have to convince them or any other lender, won't have a negative impact on your servicing of the mge (if of course it won't) - as this is naturally what will make the lender jittery in agreeing an mge with you.

Or, you could go and see a whole of market broker, he will/should know of lenders who a) are still in the market for fixed contracts and b) will have a good idea form their experience what lenders will be the most flexible on the LTV you have.

As a side issue - have you strated making plans post June ? Have you considered going into perm employment before sooner rather than later, to support any mge app ? Or as I say, are you a desirable professional who shall have no bother in finding another position on the same level of income post end of your current contract ?

Hope this helps give some pointers

Holly