Obtaining a small mortgage

Brostafarian

I have recently sold a property and have a lump sum towards buying a new one. However, I may need a small mortgage of less than £20,000. I am just about to start a job at a company I have worked at before as they want me back. They have given me the choice of working full time (for 9 months or more) or through an agency as a limited company like I did before. If I work through the agency I will end up with over £10,000 more p.a. but will this make it impossibloe or more difficult to obtain the mortgage? Should I opt for the full time salary and less money?

19lottie82

I think most lenders will only offer mortgages of over 20 or 25 k

Brostafarian

Thanks I didnt know that but let's say it will be between £20 - £25k

Aquamania

Brostafarian wrote: »

I have recently sold a property and have a lump sum towards buying a new one. However, I may need a small mortgage of less than £20,000. I am just about to start a job at a company I have worked at before as they want me back. They have given me the choice of working full time (for 9 months or more) or through an agency as a limited company like I did before. If I work through the agency I will end up with over £10,000 more p.a. but will this make it impossibloe or more difficult to obtain the mortgage? Should I opt for the full time salary and less money?

Brostafarian wrote: »

Thanks I didnt know that but let's say it will be between £20 - £25k

Talk about shifting the goal posts. :cool:

It doesn't sound like the job is very permanent to me.

Save up, strike a better deal, downsize the car, sell some unwanted stuff, etc and perhaps you could avoid borrowing at all?
Or perhaps you could borrow some on interest free credit - loads of cards offering interest free BT's at present. (a small one off fee, typically about 2.5% - 3% applies)

[Deleted User]

Why do you want to borrow £20k over 25 years or more when, according to your figures, you could pay the lot back in just 2 years with the extra money you think you can earn doing the same job as a contractor.

I just wish I knew employers that were so free and easy with their money ... :cool:

Brostafarian

darkfield wrote: »

Why do you want to borrow £20k over 25 years or more when, according to your figures, you could pay the lot back in just 2 years with the extra money you think you can earn doing the same job as a contractor.

I just wish I knew employers that were so free and easy with their money ... :cool:

I don't really want a mortgage again to be honest, I just need some more capital to enable me to be able to buy another property as the lump sum I have is not quite enough. What other options do I have to obtain an amount of say £10 - £20? A loan?

Brostafarian

Aquamania wrote: »

Talk about shifting the goal posts. :cool:

It doesn't sound like the job is very permanent to me.

Save up, strike a better deal, downsize the car, sell some unwanted stuff, etc and perhaps you could avoid borrowing at all?
Or perhaps you could borrow some on interest free credit - loads of cards offering interest free BT's at present. (a small one off fee, typically about 2.5% - 3% applies)

The amount I need is arbitrary the question is hypothetical really. Whether to the job is permanent or not is besides the point. If I want the permanent long term position I can have it. My question is if I need to borrow what is my best course of action?

kingstreet

Plenty of lenders have no minimum loan for a house purchase.

Agency/contract work will make life difficult for mortgage arrangement when new to the job, although a two year history in a similar occupation would help.

Speak to an independent broker. Expect to pay a fee, as the commission on a £20k mortgage is about £65.