Circumstances and Mortgages- HELP!

YorkEmail

Hi,


I'm after some MSE wisdom as I have no idea where to turn!


Situation is this;


My partner and I want to buy a house for about £220,000-£240,000.


We have a £60,000 deposit (have taken out fees etc.).


So we need a mortgage for about £175,000ish.


I earn £33,000 in a permanent job with minimal outgoings (£100 per month pension and £100 per month student loan).


I have A1 credit rating.


My partner is slightly more complex and this is where I need help.


For the last four years my partner has been completing a doctorate and has been paid £18,000 per year tax free. In addition, he also took six months out of the doctorate for a contract, which paid £28,000. During this six months, his stipend payments stopped.


He's now coming to the end of his doctorate and is starting a six month contract on April 1st, which will be paid approx. £29,000 (exact figure yet to be confirmed).


Our problem is that it seems few mortgage lenders are willing to see a doctorate stipend as a salaried income so, essentially, don't recognise the four years of paid work my partner has undertaken. In addition, the six month contract beginning on April 1st also seems to be problematic.


The logical option is for me to get a mortgage on my own but this would need me to be offered a mortgage for about 5.5 times my salary, which is quite uncommon nowadays.


I'm wondering whether anyone has any advice on where to go to get a mortgage at 5.5 times my salary? Or who will take my partner's 'special' circumstances into account?


Any advice very happily and gratefully received.
Thank you very much.

Dave_Ham

Whichever way you cut this, it should be achievable.

Certainly (subject to credit score) 5.5 times is achievable in sole name, but deposit may become an issue.

Depending upon the absolute detail, a joint mortgage may be achievable but certainly an experienced broker is required.

amnblog

The Stipend is finished so is not relevant.

The issue is with the short term contract. Lenders can usually work with this if you have completed a contract and have a new one ahead of you.

This case therefore will be tricky. It will take some diligent work from a broker to get it placed.

You may find you will need to wait until later in the year once your partner is on his next contract.

YorkEmail

Thanks for the responses.


amnblog... I know what you mean about the short-term contract being an issue but what I'm suggesting is that the stipend is, essentially, a four year contract. Although I am fully aware it's not seen in this way.


I'm not too familiar with the job of mortgage brokers. What is it they do? And, of course, how much do they cost?


Many thanks.

amnblog

Mortgage Brokers know the market in depth.

In particular how different lenders will view various circumstances like the one you describe. That knowledge is based on experience which is a key point. Reading lenders websites for information is NOT the same thing.

It is the broker's job to find the most suitable lender and product for your circumstances. Then to handle the application process for you until you receive a formal mortgage offer.

Mortgage Brokers run under different business set ups so charges and services will vary. Where a mortgage broker does levy a charge it is likely to be a few hundred pounds.

Every mortgage broker needs to outline their charges in full before you incur any cost.

General hints provided on here for selecting a broker include:

Use an independent mortgage broker
Avoid mortgage brokers recommended by the estate agent who is selling the property