Upsized mortgage when on temporary contract

dbdc

Hi All,

My mum really wants to move house, mainly to get away from the area she currently lives in. The house has two offers (both £65k) and she has been looking at houses up to £85k. She has £19k outstanding on her current mortgage. She's 59 and it would be ideal to get rid of around £12k of debt into a new mortgage, so she has around £32k of cash/deposit, allowing for 2k of fees and debt paid off.

She was told previously by the estate agent (on 2 occasions - one with me and one without) that she could get a larger mortgage to around £85k, but she's currently employed by an agency (although waiting for a "permanent" 2-month contract, which is another issue). She's got a good credit score (Experian - can't remember what but think it was high 800's). On her third visit to the Estate Agent she's now been told that she can't get a morgage because of her employment status :mad:. I thought that would be the case initially but I've not been through the process before so we're both learning as we go (although I'm reading as much as I can on the subject now!)

I've recently been made redundant and have been more focused on starting a new business and doing contract work than finding a permanent job.

The way forward seems to be for her to sell her current house and rent for a few (~6) months so that she's out of the chain and can move in the mean-time.

I guess my questions are:

• Are there any options for mortgages in her current employment and financial status?

• I can apply for jobs (I'd like to think I'm fairly employable!) but because I'm working on starting a business, a temporary contract is appealing, such as covering maternity leave. Would that mean I could get a mortgage and use her deposit, with her as the tennant, or alternatively get a mortgage in her name with me as guarantor, or do I need a permanent contract?

Thanks!
D

Caladan

I'm not entirely sure, but I think it would be very unusual for temp workers to be able to get a Mortgage. If you were self employed and contracted yourself out (and therefore had company accounts/tax returns) it might be acceptable but just a temporary contract? Probably not.

Guarantors are used to protect the lender on high risk cases, they're not really part of the actual approval process.

I'll wait for one of the brokers to clarify this.