General Advice

netboom

Me and my girlfriend are first time buyers, we were consiering renting but after doing a quick mortgage search with google it seems that a mortgage may be a cheaper option monthly than renting.

We opened a savings account around 3 months ago and have roughly £3100 a relative will give us £5000 and I have around 5k in my bank account which I can use some of if needed.

My girlfriend works full time as a nursery nurse and earns around £13,000.

I am self employed kitchen fitter, I was fitting kitchens for around 3 years then took a break from it and did a driving job which paid a lot less. I went back to Kitchen Fitting about a year ago now, and earn roughly £30,000 a year.

I'm not sure if this would be an issue with lack of tax returns. I currently have one.

I have been saving with the halifax as well as my current account being with them also so they can see my incomings/outgoings etc.

After looking at mortgage comparison there a lot of better deals than what the halifax offer. but at the same time they may look on my situation better as I use them.

Guess I'm asking, would i be in a position to get a mortgage? and given my circumstances have i got the flexibility to shop around?

kingstreet

You need at least one year's net profit, evidenced by an SA302 from HMRC.

You don't say what the deposit equates to. Will that be 5%, 10%?

You may have one or two options at 90%, but you won't get 95% unless you go for newbuild on the Help To Buy scheme.

TBH I'd go see a whole market broker who will analyse your credit files (obtain all three versions in advance) and your situation and place the case with the most appropriate lender.

You aren't going to get the best rates on the High Street, so it's going to be a question of buying now versus renting and increasing your time in self-employment and your deposit.

netboom

Thanks for the quick reply. We are looking at houses in the range of 90-100k so it will be roughly a 10% deposit.

How do i find a "whole market broker" and how much do they charge?

Thanks for your time and help.

Darren.

kingstreet

Ask friends and relatives for a recommendation, failing that try;-

https://www.unbiased.co.uk switching off the sponsored ads only option, so you get a full list for you area.

Charges vary. We charge £249 and receive commission of around 0.3% of the loan amount from the lender. Some charge more, some charge less. You need to shop around and find the best option for you.

Poppy9

When my OH was self employed we alway remortgaged just based on my salary as I'm employed. If your GF has a decent work history might be worth enquiring how much banks would lend her. Doubt you will get near enough a £100k house with a 10% deposit but if it's just a step onto the housing ladder you want and there are cheaper properties in your area it maybe an option.

kingstreet

Poppy9 wrote: »

When my OH was self employed we alway remortgaged just based on my salary as I'm employed. If your GF has a decent work history might be worth enquiring how much banks would lend her. Doubt you will get near enough a £100k house with a 10% deposit but if it's just a step onto the housing ladder you want and there are cheaper properties in your area it maybe an option.

Opening post;-

My girlfriend works full time as a nursery nurse and earns around £13,000

with Halifax affordability calculator indicating a maximum mortgage of £48,705 (not treating the OP as a dependent and excluding any credit they may have.)

Poppy9

kingstreet wrote: »

Opening post;-


with Halifax affordability calculator indicating a maximum mortgage of £48,705 (not treating the OP as a dependent and excluding any credit they may have.)

I did read OP hence I said

Doubt you will get near enough a £100k house with a 10% deposit but if it's just a step onto the housing ladder you want and there are cheaper properties in your area it maybe an option.

As he can scrape together 15k for a deposit - given they have saved £3k in 3 months and it will take at least another 3 months to find a house then if there is property around the 65k mark for sale they could do it. As I said depends on area and of course how much work they want to do to a property.

kingstreet

I was following on from what you said and expanding on your idea, not suggesting you hadn't read it!

netboom

Thanks for your help guys, I've just been to see the mortgage advisor at the halifax.

I've been lucky, they said because I work for the same company and they take 20% of my tax they can treat me as I'm employed. They do need to come back to me after they have confirmed with their business team but its looking promicing.

They have give me a mortgage promise and have said I can have up to 163k, Which i think is way more than I need. I can see how people get their selfs into trouble, while im sure I could afford it I would be spreading myself a bit thin.

Fingers crossed there are no issues and i can start looking

Thanks for both of your replies! :T

kingstreet

Yes. You are a sub-contractor.

As with many things, the detail provided on here can determine the information/help you receive.