Can I arrange mortgage on future salary?

YoungBaker

Hi there
I am just looking for help to answer a quick question.

Basically I am planning on becoming a first time buyer around this time next year. I am using this year to secure a deposit and saving up, and am in a position of which I will likely have a confirmed job offer for me finishing uni and beginning this time next semester with a good starting salary.

My question is: As it can take months to arrange a house buy etc. would it be a possibility for me to potentially go to the bank and arrange my mortgage before I have actually began my job? For example - could I go in in the July of next year inform them I will begin my new job on September with X salary and it will be then I will actually plan to move. I would have proof confirming I am beginning this job...

I guess I am just wondering as I would like to move as soon as I can - which is potentially when I begin and settle into my new job. So as I know it can be lengthy to arrange a move it would be beneficial to have a mortgage limit in place and an idea of a figure I could have based upon my salary so I could begin looking and viewing before I actually begin my job.

I apologise if this is an obvious question but as I say I will be a first time buyer and am planning on using this year to brush up on everything I need to know Thanks

Lokolo

I had thought about this as I am in the same position. However I am going to wait for a few months into the job because I may end up hating it - and having to do a job I hate because I decided to buy a house would be the worst thing to happen.

I am just racking up the saved properties on rightmove and hoping they don't sell!

YoungBaker

Yeh exactly I mean I am really just asking out of curiosity - I probably wouldn't until I was settled in my job also and had a wage or two behind me also but am just curious if anyone has had experience. At the moment I've just used the sort of online calculators based on salary and stuff but know this isn't always very accurate, and think it would be good if I knew in a month or two before I started what limit I could have in case I did find the perfect first home and could begin arranging it since it can take as many months to get into the house.

G_M

Depends on the mortgage lender. Provided the job offer is unconditional, and is full-time and permanent (no 3 month 'probationary period!), then some lenders might consider this.

I suggest nearer the time you see an independant mortgage broker/financial advisor, taking with you your job offer, and he will know which lenders might help and which won't.

YoungBaker

Yeh the job would be full time with a good salary and no probationary period.

Yeh I am just wondering if there is anyone who has ever done this before?

heathcote123

The lender would have to be nuts to lend to you on a job you haven't even started - anything could happen. Thats not to say you won't find one though...

YoungBaker

heathcote123 wrote: »

The lender would have to be nuts to lend to you on a job you haven't even started - anything could happen. Thats not to say you won't find one though...

I never asked if they would lend to me - I obviously don't expect them to hand me over 100 grand and then I say oh sorry the job fell through.

I am asking if you could go in and get a mortgage on principal based on this.

For example I go in and say "Hello, I will be starting my job on 1 September of which my salary is X. I will be paying out X. This is an unconditional job offer which is permanent. Would you be able to tell me what I can earn?"

I have created this thread to see if anyone has had any similair experience - i never once said I thought they would hand me over the cash and then the job falls through.

Beckyy

I would have thought that the time between getting a conditional job offer and actually starting probably wouldn't be that long (from my experience), chances are it would be a couple of weeks, maybe a month?

I think your best bet would be to see a good financial advisor. As far as I know a mortgage in principle is an indication of how much you can borrow, not a guaranteed offer. So as long as you were able to produce the required proof of income (ie 2 payslips, or 5 payslips, or whatever) I would think it would be okay if it's an unconditional job offer and you're due to start soon. I would check it out with an official though.

dorset_nurse

Yes, I did it.
When I applied for my first mortgage I had a job offer letter from my new company confirming my starting salary (and a probation of 6 months). I applied in January and was starting my job in February.
I did have a large deposit so that could have helped!

somethingcorporate

My wife had a job offer 2 years before she actually started, it can be 3 for law jobs where the applicant has not done a law degree, it's not unusual at all.

We were in the same position a few years back. We actually completed on the house before we started earning(!). A number of banks refused to entertain the idea and chucked us out before we sat down, however, we did end up with a couple of banks that were willing to listen.

Our first mortgage was with Skipton's if that is of any use to you (although it was 4 years ago now).

DVardysShadow

Allan_r_123 wrote: »

I never asked if they would lend to me - I obviously don't expect them to hand me over 100 grand and then I say oh sorry the job fell through.

I am asking if you could go in and get a mortgage on principal based on this.

For example I go in and say "Hello, I will be starting my job on 1 September of which my salary is X. I will be paying out X. This is an unconditional job offer which is permanent. Would you be able to tell me what I can earn?"

I have created this thread to see if anyone has had any similair experience - i never once said I thought they would hand me over the cash and then the job falls through.

Don't expect a mortgage in principle at this stage, but if you have a lender in mind with a local lending presence, it makes sense to go in and talk and find what they can do for you in terms of savings and how they view the prospect of giving you a mortgage. If that looks good and you start saving your deposit with them, it puts you in good stead when the time comes to borrow. They know who you are and they see your money going in, so it boosts their confidence in you over someone coming in off the street.

It was the old fashioned way of doing things - probably until 1995. Some are still like that - the experience of the last few years ahs probably really highlighted the value of knowing your customer.