Another 'would we get a mortgage' post

lexilex

We've been saving for our first house for a year now, and have 11k at the moment, with the plan to put 10% down on a house. I've fallen in love with a house. It went on Right Move yesterday (although no pics/info). We went to have a look yesterday from the outside. It's empty so we had a good nosey. It's up for sale for £90k. It's already at 50k less than houses on the same road, but needs a lot of work doing, so I think we could get it for even less. If we want it though we need to move fast. The sign isn't up yet, but as soon as it goes up it will be sold.

I am hoping to speak to London & Country today but I really would like to get an idea if we have any chance of getting a mortgage before I start visualising us moving in to this house (maybe too late for that though). I've been putting off talking to a mortgage advisor for fear of getting laughed at!

We have quite a complicated situation.

My partner works full-time, been in the same job for almost three years. Salary is £17500 plus a quarterly bonus of £150 - £650. Not sure if this bonus would be taken into consideration.

I am the one making the situation difficult

I am a freelance worker at the moment. I have been registered self employed since November 2011. Completed self assessment twice. I was also employed between June - September every year between 2006 - 2012 (long story, but originally fit round college/university, since graduating in 2010 I've done it for the extra ££). According to my two self assessments my earnings are around £7000 inc the period of employment.

I don't have an account or anything like that.

Our only outgoings are car finance (£153 a month) and two phone contracts (£19, £30 a month).

We have two credits cards. One with a zero balance, the other is a 0% tesco credit card (0% runs out Dec) with £300 on it but that will be cleared next month.

We've been trying not to look at houses until I've found permanent employment, and this house really has come up too early.

Is there any chance we would get a mortgage or do I need to put this house out my head completely?

Thank you

ACG

Short answer is yes - based on the above.
The longer answer is that it will be difficult especially at 90% but im sure there will be lenders available as you do have 2 years SA302's.

If your speaking to a broker, see what they come back with, mixed reviews with L&C, i kind of get the impression its the luck of the draw on who you get but i suppose that can be said in most industries.

Thrugelmir

lexilex wrote: »

. It's already at 50k less than houses on the same road, but needs a lot of work doing, so I think we could get it for even less.

Where's the money going to come from to do the work?

lexilex

ACG wrote: »

Short answer is yes - based on the above.
The longer answer is that it will be difficult especially at 90% but im sure there will be lenders available as you do have 2 years SA302's.

If your speaking to a broker, see what they come back with, mixed reviews with L&C, i kind of get the impression its the luck of the draw on who you get but i suppose that can be said in most industries.

L&C say no. This is based on the car finance and that they can't take my employment wages into consideration ('seasonal work'). If I was to get a permanent job they would consider that from day one. Chances of that happening before the house sells are slim.

Thrugelmir wrote: »

Where's the money going to come from to do the work?

We're prepared to do it as and when we can afford it. We don't expect it to be a quick process.

What's meant to be will be :(

whitewing

Speak to your own bank too. Ours was better than L & C in terms of actually listening to what I wanted. L & C were good at cust services but our bank was excellent (surprisingly, but gain down to the individuals I think).

L & C did find me somewhere with a slightly lower interest rate but it was a big hassle to make overpayments.

Our bank does actually show our mortgage online with our current accts etc and that was a big plus to me to have it all in the same place under the same log in details as I am fed up of having millions of passwords for everything.

ACG

I would generally say avoid the bank - reason being is they have targets and to them putting in an application on a punt generally means nothing. If you use a broker its in their interest to do it right (Less work, more chance of getting a recommendation and they get paid).

I didnt realise the self employed work was seasonal.. That being said lenders would ask what you did as an occupation, it might not come up that the occupation is seasonal in which case it may not be an issue.

Affordability will be fairly tight with the car there but i think some lenders will look at this.

Ignore L&C... for now. Im not sure how they can dismiss it without doing any research. L&C are fee free, theyre unlikely to want to put the legwork in to do some proper research - i think this is a case of you get what you pay for.

Thrugelmir

lexilex wrote: »

We're prepared to do it as and when we can afford it. We don't expect it to be a quick process.

What's meant to be will be :(

Personally I would say set realistic expectations. Property purchase is a life time commitment. So better to be secure than struggling with debt at all the time. Not the recipe for a happy relationship either.

Use what you see to spur yourselves on to saving more. Once you've a foot on the ladder. Then life gets a whole lot easier.

lexilex

ACG wrote: »

I didnt realise the self employed work was seasonal.. That being said lenders would ask what you did as an occupation, it might not come up that the occupation is seasonal in which case it may not be an issue.

Sorry not sure if I have explained my self very well.

I've been self employed since Nov 2011, they didn't have a problem with this as I've 2 years self assessment.

I have also had temporary work between June - Sept 2006 - 2012. This is what they're saying they can't take into consideration as it's classed as seasonal.

lexilex

Thrugelmir wrote: »

Personally I would say set realistic expectations. Property purchase is a life time commitment. So better to be secure than struggling with debt at all the time. Not the recipe for a happy relationship either.

Use what you see to spur yourselves on to saving more. Once you've a foot on the ladder. Then life gets a whole lot easier.

I think what's most annoying is we know we can afford it. We've been putting a lot of money away every month for the last year anyway, and we've still had a decent lifestyle, which we could easily cutback on if need be. We want a house that needs doing up. The house isn't falling down, it's just old fashioned and unloved.

Feel like blowing the lot now, but I know thats not a very sensible attitude to have

Gutted really

Dave_Ham

Vote 2 for a more experienced broker being able to get this case through. I do not imagine your type of case is l and c target market, as not straightforward. Do not rely upon any Estate Agent broker and would not take a punt on your own bank, depending upon which bank of course...

Word of caution that if this house truly is a bargain, then the Estate Agent will know it too and they may have a "preferred buyer" already.

Best of luck

Thrugelmir

lexilex wrote: »

I think what's most annoying is we know we can afford it. We've been putting a lot of money away every month for the last year anyway, and we've still had a decent lifestyle, which we could easily cutback on if need be. We want a house that needs doing up. The house isn't falling down, it's just old fashioned and unloved.

Feel like blowing the lot now, but I know thats not a very sensible attitude to have

Gutted really

A £50k differential suggests that there's some work to be done. Get a viewing and see for yourselves. Rather than guess it needs a lick of paint and some new carpets. Property can eat money.