Mortgage for apprentice

baywood_2
baywood_2 Posts: 127 Forumite
in Mortgages & endowments
My son is looking at trying to get on property ladder ASAP while prices are low ish. He is an apprentice till next September and whilst they hope to keep him on there is no guarantee of a job as with it seems most these days.he has 20k ish for a deposit. What are his chances of getting a mortgage now? Thanks.
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Comments

  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    How much does he earn? How much is he looking to buy for?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ACG
    ACG Posts: 24,453 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Defo a possibility, but it does depend on the above.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • baywood_2
    baywood_2 Posts: 127 Forumite
    His basic is 17k (I think) but with overtime last year earns 30k. House he wants to buy is 125k . He should earn same again with overtime next year.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    baywood wrote: »
    His basic is 17k (I think) but with overtime last year earns 30k. House he wants to buy is 125k . He should earn same again with overtime next year.

    Then living at home should be able to save a good deposit himself.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    What is his occupation?

    Assume half of his overtime could be used so 6.5k plus 17k basic = 23.5. Work on 4 times income so 94k.

    Could be more or less depending on lender.

    The lower the Loan to Value the better so a bigger percentage deposit will help.

    May be worth a chat with a broker.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ACG
    ACG Posts: 24,453 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    I think £125k is pushing it for someone not in a permanent position.
    Probably closer to a purchase price of £100k is possible.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Zero_Sum
    Zero_Sum Posts: 1,567 Forumite
    baywood wrote: »
    His basic is 17k (I think) but with overtime last year earns 30k. House he wants to buy is 125k . He should earn same again with overtime next year.

    you have to exclude overtime when getting a mortgage. On £17k, you'd only get around £75k mortgage. So won't be able to get the £125k house unless they're willing to knock off £20k
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Zero_Sum wrote: »
    you have to exclude overtime when getting a mortgage. On £17k, you'd only get around £75k mortgage. So won't be able to get the £125k house unless they're willing to knock off £20k

    Where do you get your information regarding excluding overtime?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Zero_Sum
    Zero_Sum Posts: 1,567 Forumite
    GMS wrote: »
    Where do you get your information regarding excluding overtime?

    by including OT, then you're essentially doing a self cert, which are no longer around. If the OT is guarenteed, then yes you could include it. Including income that you might not get is fraudulent.
  • kloana
    kloana Posts: 431 Forumite
    Zero_Sum wrote: »
    by including OT, then you're essentially doing a self cert, which are no longer around. If the OT is guarenteed, then yes you could include it. Including income that you might not get is fraudulent.

    Even when OT (and commission, and bonuses) is not guaranteed, it's common for lenders to be willing to still take into account a percentage of this income. Non-guaranteed OT, etc., factors into many a high street lenders' application process, from which the lender will make their own calculations, draw their own conclusions, and make their lending offer accordingly.

    Nowt fraudulent about that!
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