Need a mortgage but just made redundant

nekro

About 7 weeks ago I found a flat that I wanted to put in an offer for after looking at over 40 properties this year. A couple of days later I was made redundant from work. I've now been offered a new job starting next week but its a 6 month contract, not permanent.

I have £80k deposit and I want to offer £260k for the property which is still on the market.

What I would like to know is the following:

* Will being made redundant affect my options in obtaining a mortgage?
* Will I be able to get any mortage whilst working on a contract basis? (I was told that you need 2 yrs+ of payslips for contract)
* Will my large deposit and good credit rating enable me to find a mortgage?
* What is the best way of finding a mortgage for my circumstances?

Any advice would be much appreciated.

opinions4u

1. Yes. Time in job and nature of employment impact credit scoring and lending criteria.

2. Unlikely until you've been doing so for some time.

3. Possibly.

4. Seeking out a reputable broker.

By the way, you don't need a mortgage. You want one.

Dave_Ham

Redundancy is not an issue, the 6 month contract is.

What field do you work in, is it specialist?

Deposit will work in your favour, but you will almost certainly require a broker to sort this out for you.

Would not rely upon the Estate Agents one though, no matter what they tell you...

Wh05apk

With regards to the offer you are looking to make, very little property sells a £260k, as stamp duty is 3% or £7,800, drop to £250k and it's 1% or £2,500, so make it clear you will not pay over £250k n get a mortgage agreed)

nekro

Ok, thanks for all the advice.

The contract is specialist IT work - data analysis. It will be worth twice my previous salary in a permanent role.

The property is on sale for £290k although it has been available for almost 3 months now without going under offer. An offer of 250k might be strething it a bit, but I suppose there's no harm in trying.

Will my situation affect the type of mortgage deal I can get or will it just make it more diffcult to find a lender?

Dave_Ham

Hi again,

You do not mention having a current property/mortgage.

Assuming this is the case, Estate Agent research suggests this is worth about £10k to have no chain.

It was probably put on at £290k to make £265-270k given the Stamp Duty Threshold.

Given you being an IT professional and having a short term contract will be tricky, but possible especially if you can evidence the salary position for some decent history.

Do not entrust the Estate Agent Mortgage Advisor with this case though, you will be likely to regret it..

nekro

Correct, I'm a first time buyer.

I'm hoping that since the property has been on the market for quite a while now that they will drop their asking price making my offer more reasonable.

I've been in permanent employment for 10 years now (3 different jobs no break) as an IT professional, I'm hoping that the mortgage lender will take this into consideration. Also, I'm hoping that I won't have to wait too long to be working on my contract to provide evidence of payslips. (someone told me 3 months is required)