Mortgage advice - not yet employed.

tr3mor

My girlfriend and I are about to graduate.

I'm hoping to be offered a place teaching in September, and my girlfriend has a contract to start work in January 2008.

Once we're both in work we'll be earning around £50k per year between us. And we have about £50k stashed away in savings.

We were hoping to be able to buy a house in September, we're fed up of rented flats. Would we be able to get a mortgage based on us both having contracts for jobs? Which banks are likely to look favourably on this?

Any other general advice?

Cheers.

welnik

I think you may struggle. You need to be able to demonstrate that you can pay the mortgage as soon as it completes. If you find a house and have a quick transaction, how will you meet the payments if you are not earning? Some lenders may be funny about probation periods if this applies.

Wel

JoeK_3

Try Scottish Widows and Standard Life banks

JoeK

MortgageMamma

Plenty of lenders will look at it. your savings will stand you in good stead as you have means to pay the mortgage when you are not yet earning, and obviously have a good deposit so the mortgage is not a high loan to value. Lenders require proof of the contract, commencement date etc before they will release a mortgage offer. I'd advise you take professional advice before embarking on this to ensure you only approach the lenders who will consider your situation.

herbiesjp

If going it alone, please explain to the lenders, BEFORE they carry out your credit checks, about your work situation. A lot of lenders will do the credit check, say yes to the loan amount, and then say oops sorry can't take you on just yet. SO you will have had a credit check done for nothing - too many credit checks can harm your credit file

As stated above, have a word with afee free whole of market adviser, and let them find the lenders that suit your income scenario as it stands at the moment and the rest of your scenario and mortgage requirements

HTH

tr3mor

Thanks for your advice.

Would I be able to get a more competitive deal if I twisted my mum's arm and put her name on the mortgage too? She has a decent income and no mortgage herself.

herbiesjp

I don't know about more competitive deal, as you woudl need to look at both options.

Guarantor rates tend to be the same as non guarantor deals

However, there may be capital gains tax and inharitance tax implications if not done properly

MortgageMamma

tr3mor wrote: »

Thanks for your advice.

Would I be able to get a more competitive deal if I twisted my mum's arm and put her name on the mortgage too? She has a decent income and no mortgage herself.

There are lots of guarantor and parent and child mortgages available - they are usually equally as competitive as the best deals on the market. your parents would be assessed in exactly the same way as you, age, income credit score etc. They would also need to take independent legal advice prior to entering the contract to satisfy the lender that they are fully aware of their obligations and the potential consequences, and that they have not entered into it under duress.

MM

tr3mor

Thanks again for all of your help.

I guess I'll just have to look for an adviser after I have my exams and a break out of the way.

herbiesjp

tr3mor wrote: »

Thanks again for all of your help.

I guess I'll just have to look for an adviser after I have my exams and a break out of the way.

Glad to help

Come back and post how you get on, or if you need more info:T