First Time Buyer - FTC

Philwfc

Hi all
Would really appreciate any advices anyone can give on the below:

Myself and my girlfriend are looking to buy our first house together but have run into a bit of a stumbling block.

the house we want to buy is £225,000
We have a deposit of up to £40,000 but want to ideally use £35,000 plus the possibility of using HTB.
I earn £22,500
she earns £21,000 however is on FTC just renewed another 6 months having already been on one for 6 months. ( she was supposed to be made perm but due to Headcount she wasn't)

the mortgage brokers I have spoken to have said that we can easily afford the mortgage however her employment status is an issue.
Is there anyone out there who knows away round this situation?
Can we use a guarantor? or if she had written confirmation of being made perm in 6 months time would that stick?

Would appreciate any advice as the home we want looks likely to slip away...

Thank you in advance

Phil

ACG

Why do you need help to buy? You have a 15% deposit...

FTC needs to have 6 months remaining on it at time of application so she could have done with applying just before it was renewed. I think affordability is pretty tight - especially if you intend on using HTB as it can be assessed at a higher rate than "normal" mortgages.

kingstreet

Are you buying a newbuild and wanting to use the HTB - Equity Loan scheme?

You appear to need to borrow £145,000 which seems reasonable given your incomes and the contract isn't a major issue based on what you've said. It will depend on your outgoings though.

Consult an experienced newbuild broker, if my assumptions are correct.

Philwfc

Thank you

Yes we are buying a new build and likely to use the HTB just to keep the mortgage payments lower over the first 5 years.
Theres about a £250 difference in quotations when using the HTB then when not - at this stage that gives us a bit more flexibility on monthly outgoings.

I will speak to some more brokers however the two I have spoken to - L and C and Persimmon homes own have raised this as an issue.

kingstreet

A once renewed fixed term contract with another six month fixed term should be fine, especially if she has two years' experience in her chosen career.

You need to speak to the broker, not the builder. Also, L&C is not a newbuild specialist.

Thrugelmir

Philwfc wrote: »

( she was supposed to be made perm but due to Headcount she wasn't)

Then is it wise to undertake a 25 year commitment when there's obvious uncertainty?