Mortgage on future income (within next three months)

adelene

Hi there,
My husband and I are relocating for new jobs and have already sold our flat, which exchanged yesterday. Because our jobs are in teaching and academia, the new jobs don't start until September 1st and October 1st. We obviously need to move by that time, but as my income is set to double (currently a bursary, but soon a 'real' salary) and my husband's income is going up by nearly 10,000 pounds, we need to base our new mortgage on the prospective income rather than our current income. Cheltenham and Gloucester will consider us from 1st July because we will then be within three months of the new salaries. Does anybody know of any other lenders who will consider us before the new jobs? We have previously had a mortgage and have an excellent credit record. We are both 25.
Thanks,
Adelene

JoeK_3

Try Scottish Widows and Standard Life Banks

Joe

herbiesjp

Plenty lenders will, provided you have signed contracts confirming the new incomes

homer_j_3

If you want to get the mortgage before you break for christmas holidays, I would avoid scottish widows like the plague! I have lost my hair this week with them!

It is impossible to say exactly which banks will accept because of lack of specific information from yourselves and us brokers not really being able to provide advice on here. We can give you a nudge in the right direction but approach all lenders mentioned with caution as we do not know your circumstances fully!

adelene

Hi -thanks for the advice. I guess I should have been more specific. My job is as a university researcher - salary 25k, starting 1st October 2007. My current 'job' I guess is as a PhD student on a 12k per year bursary from the Arts and Humanities Research Board, (payments cover up until the end of September). My husband is a teacher, second in department, currently on 24k but rising to 31k when he starts his new job on September 1st (and is paid until that date by his current job). We have sold our current flat for 134k, on which we had 86k left on the mortgage and 36k on a 'key worker' loan, leaving us with very little after moving costs etc, so we want to have a 100% mortgage, using any equity to cover the shortfall in October, when I won't get paid until the end of the month. The house we have put an offer in on is 205k and is a 2 bedroom, mid-terraced house. I think that just about covers it! And thanks again!

herbiesjp

Not sure if you have any other debts in the background

But based on those figures you should be fine with quite a few lenders

Which lender best suit you, will depend on your exact details and what you want from the mortgage scheme itself

HTH

adelene

We have a credit card with a 1400-pound debt on it which we are paying off with some of the equity from our flat. We have never missed a payment and this is our only other debt, so we will have no commitments when we buy again. We want a three or five-year fixed rate, 100% mortgage. I must stress again that the problem we have encountered so far is that our new incomes, on which the salary must be based, are future incomes. We have proof of the jobs but it has been difficult to find anyone to accept it. I was just wondering if anybody had any ideas so we can go and have a look at some other lenders. It is difficult to tell online. Thanks.

dwsjarcmcd

For online systems, I would think you simply input your new salaries. When you have decided on your lender and your mortgage is being processed, they will ask for proof of income, which you have for your new jobs. Supply those details and I can't see a problem with any lenders accepting them.

David

topher_2

I'm a teacher - my salary jumps quite considerably in September due to a different internal job. Northern Rock were happy to work on my new salary 6 months before it happened - I just had to get a letter from the school that explained the situation.

Hope this helps

herbiesjp

adelene wrote: »

We have a credit card with a 1400-pound debt on it which we are paying off with some of the equity from our flat. We have never missed a payment and this is our only other debt, so we will have no commitments when we buy again. We want a three or five-year fixed rate, 100% mortgage. I must stress again that the problem we have encountered so far is that our new incomes, on which the salary must be based, are future incomes. We have proof of the jobs but it has been difficult to find anyone to accept it. I was just wondering if anybody had any ideas so we can go and have a look at some other lenders. It is difficult to tell online. Thanks.

It sounds like you are having problems with finding the right lenders.

There may be some that could look at future earnings, but not reach the income multiples that you are looking for, so you need to make sure you meet the criteria of the lenders in question

There are quite a few that could look at this, but it is impossible to point you in the right direction with the limited information on the board.

Your best bet would be to discuss in more detail with a fee free whole of market adviser, and let them come back with several options

HTH

adelene

Thank you everybody. This is most helpful. I'll try Northern Rock, though I'm not sure they'll lend to us at the multiples we need.
Thank you very much again,
Adelene