Will anyone give a mortgage to...

Pricivius

A relative is hoping to buy a property. He is a self-employed journalist with an up and down recent career history. He was contracted for about a year to an online magazine with a regular income and then there was a break of over a year and now he has another contract with a website. The new contract equates to part-time work.

He has a deposit which I understand to be in the region of £20k, but I will correct this when I know the accurate figure. I understand his credit rating is good, but again, I will check this.

He is looking at properties in the sub-£100k realm, but what's the realistic position? Will anyone lend?

If the answer is no, what is the possibility of a guarantor? Or someone going on the mortgage jointly with him? The options here would be his mum who is an OAP with pension income or me in full time work with a reasonable income.

Is it never going to happen or would some lenders accept him?

Thanks in advance for any help you can offer.

Thrugelmir

Without a stable income how would he repay the mortgage?

Pricivius

Fair point. But isn't the case for a lot of self-employed people? At present, his contract is sufficient to pay the relatively small mortgage he would need for a property at the cheaper end of the market. He is looking for other contracts to supplement this income.

I guess other self-employed people have a better earning history than he does.

So would guarantor/joint be an option?

ACG

For a £100k property the deposit is there.
Depending on what his contract states, it may be enough to get a Mortgage.
His income would need to be circa £20k plus.

As for the question regarding being in a stable job... It is the case for all self employed people (me included). But my income is fairly consistent, its actually increasing. So despite being self employed i can be fairly confident what my wage will be this year and bar a meltdown in financial services or a huge surge in clients im fairly confident i know what i will earn next year.

Is your friend as confident?

Its not just a case of getting a mortgage, you have it for 20-30 years. You need to be able to pay it both now (while interest rates are at an all time low) and in the future when rates do rise.

In theory it is possible but i would suggest speaking to a broker though.

Dave_Ham

As suggested this could be achieved, although definitely a broker required..

Pricivius

Thanks, everyone, for your views. I will find a broker and have a chat about the options.

It sounds as though there's some hope...!