How to get a mortgage when on price work?

kellydobson

My husband was self employed up until 3 months ago when he took a job purely so we could get a mortgage without the wait. He doesn't get a basic wage, he gets paid majority price work plus the odd few basic hours. This was a condition he set with his employer so that he gets paid more. So we've been speaking to a financial advisor and got a £180,000 mortgage in principle with Santander but now after looking thoroughly into the application they won't lend because of the price work, and none of the other top lenders will either. He's still going to try looking further and trying different lenders but isn't very hopeful.
Has anybody else been through anything similar and found a way though it?

Thrugelmir

With only 3 months history lenders will be wary given the regulatory requirements of MMR.

kingstreet

Is he traipsing up and down the higher street, instead of speaking to an independent mortgage broker?

Is "price work" a euphemism for "piece work" where he is paid based on what he actually produces?

In certain parts of the country, this is a standard employment model and the local lenders have adapted to it, to enable them to lend. An experienced broker would be able to help.

kellydobson

Yes I think he is pretty much looking through all the high street lenders and contacting them, he said he's been through about 15 who won't lend but will still keep trying.

I'm not sure if it's called piece work, I guess so as yes he gets paid for what he produces (he's a joiner for a well established building company), on his wage slips it just states price work as that's what they call it.

That makes sense that some lenders must have adapted to suit types of clients like this, as I don't think it's that uncommon as he makes out. How do we go about finding one, should we find another advisor?

dotdash79

In East Lancashire a lot of the shoe and slipper factories pay by piece work (before they all closed to due to production being moved to china), look for lenders that have have a history around the mill towns (Skipton, Marsden, Manchester BS, etc).

Lenders around the potteries might be helpful as well.

I'm not saving these will definitely lend but might be more open.

Let_Us_See

kellydobson wrote: »

My husband was self employed up until 3 months ago when he took a job purely so we could get a mortgage without the wait?

Talk about out of the frying pan into the fire! Why didn't you speak to a broker before deciding to change employment? Was income from self-employment insufficient to obtain a mortgage?

Talk to a broker as they should be able to assist in your current predicament.

kellydobson

Let_Us_See wrote: »

Talk about out of the frying pan into the fire! Why didn't you speak to a broker before deciding to change employment? Was income from self-employment insufficient to obtain a mortgage?

Talk to a broker as they should be able to assist in your current predicament.

He had only been self employed for 6 months so we were told that he needed at least one, preferably two years books before they'd even look at it. He took this job at a company who he'd previously been subtracted with on the basis that he would get paid by price instead of the basic wage they wanted to offer per hour so that he could earn more money. Obviously we didn't realise that being on price would affect this or he wouldn't have bothered, we just thought the wage slips he'd be getting would be sufficient to secure a mortgage.

We've spoken to a broker already who got us an agreement in principle before it being declined when going through a full assessment. He's contacted about 15 lenders so he says and this week is going through the final few but isn't holding out much hope.

kellydobson

Just bumping this as we're still not getting anywhere. Wondering if anyone else has been in the same situation?

Opinion

Speak to a broker.