RTB advice please

lindseykim13

Updated Please see post 3

Hoping to read some experiences of RTB and i thought i had seen a sticky or similar somewhere but i can't get the search to work well. Anyone point me in the right direction?

ACG

Search right to buy and RTB on in the search section.

Otherwise ask away and we will try and answer.

lindseykim13

Ok thanks i will ask away then,
I'll try and keep it quick
House is worth approx £130,000 our discount would be £53,000 so need to borrow roughly £77,000
I have concerns that we will be turned down as DH has only been back in work for 6mths. Previously an employee for 10yrs earning £21k a year but took a year off as i was ill. He is now a self employed contractor and goes from one job to the next so doesn't have a set place of work/wage. Right now he is on a guaranteed 4mth contract but could go on longer which would be an income of £36,000 a year if he stayed ect. How would a mortgage co. view this? I'm concerned they would want to see a full year or 2 wages which we don't have. Previous years but not last year.

I'm also self employed but only get £2-3k a year.
We do get tax credits and cb ect for 3 children.

We have a bit of savings for the fees.

I don't want to start filling out forms if we would be best off waiting x amount of time.

I am also unsure if we need to use a broker with our situation? We would like a mortgage where we can overpay.

ACG

If he is given a contract for at least 6 months, there could be a couple of lenders who will consider it.

The child tax credits etc and your income will not be enough to get a mortgage so your husbands contract would be the deciding factor here, unless he can get 1 years accounts - but that would still be a tough ask.

I do think this is one for a broker but only once the contract has been extended as before that i dont think you will get a mortgage.

lindseykim13

Thanks that's what i thought, so for the time being i think best to save what cash we can and get a more stable contract or job offer in place.

ACG

Sorry i worded part of that wrong... it needs to be a contract extension for 6 months. If he signs a 6 month contract with a new company then lenders will want to wait and see if it gets renewed again for another 6 months.

lindseykim13

Think i understand, my only concern is that the type of industry he is in means he will not be likely to stay at the same company, he has to go wherever the work is. Most of these self employed contacting jobs are temp for 3-4 mths and then they won't be needed anymore so he will either get another self employed position via an agency usually or he can take the option of paye through the agency if it helped.
Do you think a good year or 2 of showing that he can move from job to job quite easily and averaging out his years wages would be the best way?

Oh btw he has no definite contact they could just boot them out with a weeks notice as it's all via an agency. Just they have been told by the site boss that it's going to last at least 4mths.

ACG

What does he do?
I think really your going to need to wait until he has 1 years accounts but at that point there may be options available - its one for a broker without doubt in my mind though.

lindseykim13

Thanks he's a welder specialised in ship building. These sorts of jobs have all gone contractor/agency based.