Advice - pulling myself together!

Jo_King

Hello. I've already been getting some advice about where to buy in Manchester - thanks for that.

I'm a first time buyer looking at houses in the £90-100,000 mark. I have £9,500 in savings. I'm also due £5000 in redundancy at the end of April (and begin a new job at the beginning of May). Future salary is much higher than current salary, so hoping I can borrow against that. Best deal I've seen so far is with Ulster Bank, but need to give them a call to check that out.

I'm only doing my first viewing next week, so I may be a bit early. I'm hoping to use £7,500 in deposit, and use the rest to cover fees and so on. However, if I could borrow £5,000 on a short-term loan, I could pay it back in full in May, and put £9,500 down in deposit. I absolutely have to be out of my current flat by the end of April, so reckon I'd need to be putting in offers in Jan/Feb time to have a house in time.

So, any advice on:
1) Whether I'd be likely to be able to get a short term loan, or would it influence my ability to get a mortgage?
2) How much are the fees (solicitor etc) likely to cost?
3) How soon I'd need to be putting in an offer if I want to move in in late April?
4) Anything else obvious that I need to think about?

Sorry, these are probably very stupid questions, but I'm very clueless on all this stuff!

BitterAndTwisted

You cannot use a loan to add to your deposit as that will affect what a mortgage-lender will be prepared to offer you.

You should factor in surveys at £1000 a throw (you may not end up buying the first property you make an offer on).

Conveyancing will cost about £1000


Time-scales are extremely difficult to forecast as you may be in a chain and unforeseen things may pop up that you hadn't anticipated. Some chains break completely and then everyone has to start all over again. Trying to match the end of a tenancy to the day you complete and move in may prove more difficult than you imagine.

You might think that you "absolutely have to be out" of your current rental by the end of April but that might not be the case. If you're prepared to explain why, advice could be given.

sandsni

I doubt if any bank would allow you to borrow on your "projected future income" from your new job. A lot can happen in a few months so I would suspect you will have to wait until you actually start before you can use that income in any affordability checker.

Simon11

If your getting a pay raise with your new job, I would wait until you are a month into the job. You should be able to get a better mortgage rate.

If I was you, I would ask to extend the let on the property for a few more months.

Jo_King

Yes, I need to be out because my flat is provided by work. Work is closing down, therefore no more flat! I could move into temporary accommodation, but that starts increasing costs very quickly.

Jo_King

I should have said too, the Halifax have seen my new contract and say the fact that I will not have started shouldn't be a barrier to offering me a mortgage - it's a permanent contract.

BitterAndTwisted

You'd be absolutely mental to negotiate a mortgage based on a job you haven't started yet. Between now and the day you start the offer could be withdrawn. !!!!!!-creek and a paddle come to mind....

I think your need to move out of this accommodation tied to your job is causing panic. This is not a good time to make a life-changing decision! Much better to go into rented or become someone's lodger for a bit than be in danger making a rushed decision which could turn out to have been a bad one.

Jo_King

Hmmm. Ok. I could certainly move elsewhere. I'm not particularly panic stricken about the accommodation - I was more worried about the job!

While I don't really want to say what the new job is, it's unlikely to be withdrawn. I mean really, really, really unlikely.

Maybe I should just rent for six months. Two things bother me on that option. I have a disability which means that moving has a pretty hefty physical cost, and which also means I have to spend money on adaptations of wherever I live. Still, perhaps the physical and financial costs are worth it.

moneyistooshorttomention

Have you got it in writing/signed in blood/etc etc that you quite categorically WILL get this new job beyond the shadow of a doubt?

I do hope this will be the case for you...but am feeling wary because of the number of times I have seen people posting on here that they just KNEW they had been promised a job and then the employer reneged on it at "5 minutes to midnight" and there wasn't even any compensation due to them for that broken promise ...Broken promises matter, but have no status in law.

It's astonishing just how many people/firms/the Government will promise The Earth until that "5 minutes to midnight" and then turn tail and flee and reckon on the fact that you cant get them for due compensation for their lack of foresight (aka being lying little toads)...:(

DRP

Definitely plan to lodge or something equally flexible.

It could take months for you to find a place to buy and then how long is a piece of string for the purchase to go through...

April is very unlikely IMO

Also getting a loan isn't a good idea. It will disproportionately affect your ability to borrow.