Will we get the mortgage we need?

WinterGhosts

Our offer on our dream house at been accepted at £173000 and we have a deposit of between £40,000-£50,000.

My boyfriend takes home £26,000 but should be getting a payrise in october.

I'm employed on a part time basis at the moment but am effectively doubling my wages with overtime. However, the 3 month temporary contract I started on seems to have just rolled over and although I know that their audit has brought this up - and none of their staff have permanent contracts, I'm not sure how long these will take to appear. In total, based on my last 3 wage slips I'm taking home between 400-500 a month.

(I have only worked there since May which I guess makes things worse )

Just feeling very upset that everything might go wrong because of me.

ACG

It should be possible but i would suggest speaking to a broker as some lenders may have issues with things as it stands.

WinterGhosts

Thank you for replying.

Are there any lenders who you would tell me to avoid.

I currently bank with HSBC, the boyfriend with Natwest if that makes any difference.

Obviously we were hoping to take advantage of some of the lower rates arounsd at the moment but that's looking unlikely isn't it

Is there anything I can obtain from my employer at all to help?

What if my boyfriend can get a written pay increase offer from his employer? Would that make any difference.

It's annoying that I may cause these problems as he is the much higher earner

Cornucopia

The numbers are a stretch. I doubt you will get any success in approaching lenders directly.

Go to a broker and see what they can do. Have you worked out the repayments, made sure you can afford them?

WinterGhosts

Yes we have worked out all the numbers and can afford them based on our monthly outgoings currently. Natwest already confirmed (can't remember what i said about my employment status as a few months ago) we could look at houses up to the 193,000 level and a mortgage advisor suggested even higher so we thought this house sat nicely under stretching ourselves.

ACG

The likes of HSBC/First direct are going to be unrealistic.

High Street lenders may not be a impossible and natwest seem to allow some quirky things through, they may be one of the lenders who would look at it - but please do not just assume they will and make an application on a whim.

At the minute you have a bit of a complex case, you dont want a poor credit score to compete with also. Do it right first time.

You either need to get on the phone to the lenders and discuss your case with them or you need to get a broker doing it for you. It doesnt mean you will be paying high rates but the best rates have harder criteria to jump through (it comes hand in hand). If you could get a permanent contract that would probably help or if your bf's pay rise is enough to afford the mortgage on his own that would help.

WinterGhosts

Thank you for your reply.

We will be trying to get an appointment with a mortgage broker as soon as possible - how would you suggest we find one? do we avoid ones who work with estate agents? Are they expensive to use? I know some are paid commision, but do we pay a fee on top of that?

Is it worth going back into Natwest and talking with them again - they had already told us to go back once we had an offer in place on a house.

lastly, there are another 2 potential options, will either help?

1. Be gifted money from parents to increase deposit slightly?

OR

2. Have a parent added as a guarantor?

I had hoped that with the substantial deposit we have, it would help to circumnavigate mortgages easier but apparently not...

If it helps we have no adverse credit history, no loans etc. One credit card recently opened to help our credit history (paid off in full every month). Also - student overdrafts from our university days.

And no dependants except 3 ferrets.

ACG

A gifted deposit may help especially combined with the increase wage as its not a million miles out anyway.

But to be honest, speaking to a broker they can look at lenders who will accept contract work and/or gifted deposits - meaning theyre actually looking at both options for you... which will enable you to get a better deal.

As for going to natwest directly, you can do but a broker will have them in their searches so theres not much point?

I would avoid estate agent based brokers like the plague!

As for fees, they all charge differently. Some take commission only, some charge a fee and rebate commission others take both.

As for whether theyre expensive it depends on your outlook....
I helped a client last week, the previous broker sat on the paperwork for 2 weeks and did nothing - he didnt charge a fee.
I went in and said my fee is £500. He didnt want to pay it, but i shown him how the deal i can get is £1400 cheaper over 2 years.
So the client is £900 better off by paying me £500 than he would have been with a fee free broker...

It depends on your outlook and what you want. Im not saying the above is something that happens all the time, but sometimes you do get what you pay for.

Maelwys

ACG wrote: »

if your bf's pay rise is enough to afford the mortgage on his own that would help.

I'll admit that I'm not extremely familiar with mortgages, (I bought my first house two years ago and am currently trying to navigate my way through switching mortgage deals) so maybe I'm missing something here... but isn't the OP's partner's current salary at £26k sufficiently high at the moment to qualify for a mortgage alone, even without factoring in the OP's part-time pay?

The fact that the OP has a deposit of £40-50k means they'd only need to borrow between £123-133k on that £173k property.

A quick glance at Barclay's mortgage calculator says they'd be willing to lend up to £143k on a 26k salary. If the OP managed to put down £44k in deposit (a borrowing of £129k - well under that 143k figure) then that'd put them into the 75% LTV bracket, where I know there are some brilliant deals at the moment as that's where I've been looking at for the past few weeks.

I can appreciate that buying as a couple may have its own inherent complications, and realistically-speaking affording the payments of a £129k loan (£550-700 a month) on a 26k salary might be tough going, but given the OP's own wages (let alone an impending raise) it looks like the numbers would more than add up?

When I went in for my mortgage two years ago I managed to find a decent independent mortgage broker who got paid solely on commission from lenders (if memory serves my application got them something in the region of a few hundred pounds, none of which I paid). I'd certainly recommend going that avenue if possible, it seemed to cut out an awful lot of hassle - I only needed to talk to a bank rep twice.

WinterGhosts

ACG wrote: »

I would avoid estate agent based brokers like the plague!

As for fees, they all charge differently. Some take commission only, some charge a fee and rebate commission others take both.

As for whether theyre expensive it depends on your outlook....
I helped a client last week, the previous broker sat on the paperwork for 2 weeks and did nothing - he didnt charge a fee.
I went in and said my fee is £500. He didnt want to pay it, but i shown him how the deal i can get is £1400 cheaper over 2 years.
So the client is £900 better off by paying me £500 than he would have been with a fee free broker...

It depends on your outlook and what you want. Im not saying the above is something that happens all the time, but sometimes you do get what you pay for.

I'm happy to pay for a service that will help me than not pay someone who will end up taking longer and not actually helping me in any great lengths.

We will look at whether parents can offer us any help at all. They have mentioned helping us but we didn't want to accept the help - pride and all, but it may be the better option.

If we did go for the mortgage based solely on my partners salary, I would still have my name on the mortgage wouldn't I? As that is something we would not compromise on.

WinterGhosts

Maelwys wrote: »

I'll admit that I'm not extremely familiar with mortgages, (I bought my first house two years ago and am currently trying to navigate my way through switching mortgage deals) so maybe I'm missing something here... but isn't the OP's partner's current salary at £26k sufficiently high at the moment to qualify for a mortgage alone, even without factoring in the OP's part-time pay?

The fact that the OP has a deposit of £40-50k means they'd only need to borrow between £123-133k on that £173k property.

A quick glance at Barclay's mortgage calculator says they'd be willing to lend up to £143k on a 26k salary. If the OP managed to put down £44k in deposit (a borrowing of £129k - well under that 143k figure) then that'd put them into the 75% LTV bracket, where I know there are some brilliant deals at the moment as that's where I've been looking at for the past few weeks.

I can appreciate that buying as a couple may have its own inherent complications, and realistically-speaking affording the payments of a £129k loan (£550-700 a month) on a 26k salary might be tough going, but given the OP's own wages (let alone an impending raise) it looks like the numbers would more than add up?

When I went in for my mortgage two years ago I managed to find a decent independent mortgage broker who got paid solely on commission from lenders (if memory serves my application got them something in the region of a few hundred pounds, none of which I paid). I'd certainly recommend going that avenue if possible, it seemed to cut out an awful lot of hassle - I only needed to talk to a bank rep twice.

This is what I've been sat hear thinking. My salary wasn't a huge amount. Natwest said £193k total including 40k deposit if I recall correctly, so I could have thought that taking my salary out of the equation, he would still get a mortgage on his and mine would help us out financially as it does now.

However, would that mean my name wouldn't be on the mortgage because that isn't something we as a couple would be happy about as we want to go into this together.