Wife is teacher on fixed term contract

NIFTB

Hi,

Bit of a long winded one here but we have spotted a house we wish to buy, new build, 185k but we have agreed price with builder for £179k.

We are paying 10% deposit! 10k in savings at mo but locked in fixed rate until November.

We are FTB, no rent as living with parents after getting married in July. I am perm employed, she is teacher but on fixed term contract, this is her 2nd year at the school and she has had 3 years at another and various other schools. Average P60 over past 5/6 years for her has been 25k.

I am on basic of £29,500 and car allowance of £5,000 and bonus on top so rough average p60 over past few years of 50k and on course for 55k this year.

The problems:
Will anyone accept my wife as joint applicant?

New build so not many willing to offer 90% in NI?

I have been using my overdraft to the max of 1,400 past year (always cleared on pay day). I have been saving for wedding and the o/d was interest free. I can show the savings going in and being used in July.

Since then I have paid off 3k on credit card and am planning to pay off an old Halifax loan of £700 (157 per month and less than a year left). Will this cause huge problems that I have been using overdraft in this manner? As it only takes me one month not to save or pay off debt not to be using it.


Finally I have PCP car finance, £475 per month....this seemed to have dropped my credit rating down on experian to 'fair' 850....but never any missed payments and I have been closing all unused accounts.

I am worried if I put booking fee down and we apply for mortgage we will be snookered, especially if builder wants to exchange contracts in 8 weeks (house not ready to March)!

Does everything above look ok? Especially the problems?

Mummy_Bean

I been trying to get a mortgage on fixed contract...not all lenders will accept but those that do require you to prove you have worked in same sector with continous employment for 2 years prior to the contract starting.

Some ask that you x amount of time remaining om contract or that you worked x amount of time. so from what you said you should be ok on that front.

Zoology_Dragon

My husband is permanent whereas I'm on a fixed term contract with just less than a year to run and we had no problems getting a mortgage. I wouldn't like to comment on affordability but that car loan is a massive chunk out of your pay. We only borrowed an amount we could afford easily on one salary which may have helped.

NIFTB

Sorry for v late reply, yes car payment is quite big, but was expected to be used by employer....almost frowned upon if not. Though we have done a lot of affordability checks and we seem to have a good level of surplus income even after all bills. It is our only form of debt....

Seems to be a real problem finding a provider who will give 90% on new build though...

ri17

We've been approved with a santander mortgage with hubby on a fixed term contract. We do have 9 years mortgage repayments behind us though.

Tbh id not tell them. They don't check and believe me a lot tick perm when they're temp x

Stratus

she is teacher but on fixed term contract, this is her 2nd year at the school

If this is the case she may find she has acquired permanent employment rights. Would be worth checking with her union. I know of a number of schools that have made this error and are unable to dismiss members of staff when their contract ends.

kingstreet

Have you spoken to the builder's usual broker?

There are lenders who will lend at 90% on a newbuild, but they may not lend on a particular property if the builder and its selected broker aren't on the newbuild panel.

I'm not sure if the usual lenders offering 90% on a newbuild will lend in Northern Ireland, or if they will accept a fixed term contract, even though it has been renewed once already.

NIFTB

Stratus - There is a permanent job coming up which is likely to go to her, but it was meant to start in September but has been delayed until after Xmas now. The first year she was there it was 'subbing' for the whole year so didn't count unfortunately - hopefully we can get this job brought forward!

Kingstreet - you are quite right, usual lenders don't cover NI, and builder doesn't have a broker unfortunately...

kingstreet

Does Teachers Building Society lend in NI?

I've tried sourcing for a 90% newbuild in NI and the only options coming up are Progressive BS and Ulster Bank and Mortgage Brain is notorious for sourcing results which later prove to be unreliable, so I suspect the lenders concerned don't do 90% on newbuilds.

NIFTB

TBS only do England, Scotland and Wales unfortunately! The house won't be ready until March and the roof going on prob just after Xmas so hopefully we have time!!

saverbuyer

All the local N.I. lenders (Ulster Bank, Danske, BOI, First Trust, and Progressive) will lend 90% on new build.

They are all usually quite "risk adverse" so the car payment will hammer affordability. Danske will take about 70k off affordability with that car payment. TBH it's the reason we bought our new cars with cash.