First time buyer

SimonDance

Good morning,
I am a student graduating this june, and my partner and I would like to make plans to buy within the next year. As I understand, I will need to get around 6 months employment history behind me in order to qualify for a mortgage... is this correct?
Furthermore, on average are mortgages calculated at around 4 times your combined salary?

I guess I just need to have something to aim for, I think we are going to rent first of all... I just hope it doesnt zap all of our savings.

I look forward to your thougths.

Si

Timmne

Hi Si,

You made me chuckle that you posted this in the Mortgage free wannabee board!!

Not sure on the 6 months work experience thing; Halifax certainly had issues with me as I was moving jobs at the time and wanted confirmation from my boss that I would complete the probationary period satisfactorily!!

One important thing is having any kind of debt (apart from student loans) is really frowned upon by lenders - I had to 'hide' my car loan by my dad taking out a loan for me and me paying from my account, just so the lender didn't see any debt. If you have any, it's worth paying off before getting a mortgage unless you don't mind having a (very) reduced borrowing potential...

We were 1st time buyers in July 05 so we've been through it all and got a wardrobe of Tshirts to prove!!

SimonDance

Thanks very much for your response,

I think you're right about the debt - I am aiming to cut up the credit card in the next few months once and for all, and prehaps call the banks to forcefulyl even reduce my overdraft by say £100 a month, so that I can get back into the black!

I would like to get a terramundi, as I had one in my first year of uni and managed to save quite a lot...

But oh well, at least there is MSE for advice when we eventually get the mortgage!

sunflowers1

Hi Si,

We're currently in the process of buying our 1st house & got a mortgage offer when I had only been in my job for three months (this was with Nationwide). They did ask for references from my employer whereas they didn't bother to ask my boyfriends employer as he has been with them 6 years.
Definitely try and clear as much/all your debts as I think some lenders will multipy your debts x 3 and deduct this figure from what they will lend you.

My boyfriend got me a terrimundi for christmas but I haven't put any money in it yet as I don't think I'll ever be able to bring myself to break it as its so pretty lol!

Good luck with your saving.

UK007BullDog

Reduce your debts.
Cancel in writing your paid off credit cards to enhance your borrowing powers.
Make sure you are both on the council register.
6 months or more is good for job security.
Dont borrow any more.
No hire purchases.
Do not have your overdraft reduced.
You need to learn to budget without outside help/restrictions.

Income multiples are all different depending on lender. Some go by affordability.

nearlyrich

I will move this to the standard Mortgage board as this one is more for people who already have a mortgage that they are trying to get rid of ASAP. Good luck with your plans.

irishwench69

Timmne wrote:

Not sure on the 6 months work experience thing; Halifax certainly had issues with me as I was moving jobs at the time and wanted confirmation from my boss that I would complete the probationary period satisfactorily!!

......................................

We were 1st time buyers in July 05 so we've been through it all and got a wardrobe of Tshirts to prove!!

Hi Timmne :wave:

My partner and I are also FTBs at the moment. I was interested to hear what you said about jobs - I've been working for over five years since graduating with my first degree, but in different jobs (I did a fair amount of contracting, with the longest role being a bit over a year).

I moved jobs again in October last year, so have been with my current employer for three months. My probation is six months though!!

What did your employer do / say to your lender to make it ok? My notice period is actually one month during probation (i.e what many people have as a notice period outside of probation), rising to three months notice for me after the six months is up.

Any help / advice much appreciated - I really want this to go through ok!! :eek:

IW x

Timmne

Hellooo....

I wouldn't worry tooooo much about it - my employer wrote them a letter telling them that after interviews etc I seemed right for the job and probation was solely in case of "extraordinary" events that they would need to use it to sack you. It depends how close you are to your boss really, I was going to work for a guy on his own so we already had quite a good working relationship even before I'd started working for him!

As long as you can get a letter (if the lender even bothers asking for it) from your boss saying the probation is purely a process and nothing to be concerned about, you should be fine!

Good luck, and prepare to start rubbing "I've been fleeced" cream on your !!!, you'll probably end up feeling mugged being a FTB and all - beware of people taking advantage of you because of it!!!

:beer: