12 Months Employment??

birtyboy

Hi

As if trying to get a mortgage with a default in August 2013 wasn't hard enough it now turns out i need 12 months consecutive employment as well!!

We have an LTV 27% due to a deposit of £180,000 and still this isn't enough because i switched from being self employed to employed with a 3 month gap in between i don't fit the criteria of 12 months consecutive employment.

Is it just me or are the hoops you have to jump through to get a mortgage getting a little to ridiculous now??

Now i am going to have to wait until May 2015 to get a mortgage and just sit on my £180,000 and continue to loose money on renting all because the system as gone crazy!!

GMS

How much was the default? What was it for? Has it been satisfied?

When did you start the job?

Moseydo82

Who is it with?

Why do they want 12 months consecutive employment?

amnblog

An erratic employment track record makes lenders nervous. Hence many require 12 months employment history.

ACG

Precise?
How much was the default?
I would think with that deposit their will be some smaller lenders prepared to do accept you - lenders who do manual underwriting.

Mortgage_Mark_2

Speak to a broker, this is a prime example of where it can be a massive benefit.

birtyboy

Thanks for the replies so far.

I answer to various questions.

We have tried a broker who has tried Precise, hence the 12 months employment issue as this is one of their criteria.

The default was for £3500 on a post office credit card. I was having trouble financially whilst self employed waiting for our business to sell and at the time contacted The Post Office credit card and asked for assistance (as you're advised to do) and they put me on an agreed reduced payment plan, which i stuck to and eventually when the business sold clear of the debt, unfortunately they still decided to default me on the account and as such placed a default on my credit file. Hence all the problems now in obtaining funding :-(

Thrugelmir

birtyboy wrote: »

Hi

As if trying to get a mortgage with a default in August 2013 wasn't hard enough it now turns out i need 12 months consecutive employment as well!!

We have an LTV 27% due to a deposit of £180,000 and still this isn't enough because i switched from being self employed to employed with a 3 month gap in between i don't fit the criteria of 12 months consecutive employment.

Is it just me or are the hoops you have to jump through to get a mortgage getting a little to ridiculous now??

Now i am going to have to wait until May 2015 to get a mortgage and just sit on my £180,000 and continue to loose money on renting all because the system as gone crazy!!

The system isn't crazy in the slightest. It's the expectation of borrowers that's crazy. As if borrowing is a right.

birtyboy

So its not crazy that people cant remortgage at a more affordable rate because they don't meet the new affordability criteria??? A bank can tell you you cant afford it even though its cheaper than what your currently paying, yeh that's not crazy at all!!!

Cyberman60

It's not unreasonable for a bank to expect a good employment record before offering a mortgage. After all, you'll be expected to keep up payments for 25 years !! :rotfl:

Thrugelmir

birtyboy wrote: »

So its not crazy that people cant remortgage at a more affordable rate because they don't meet the new affordability criteria??? A bank can tell you you cant afford it even though its cheaper than what your currently paying, yeh that's not crazy at all!!!

As per your earlier post.

The default was for £3500 on a post office credit card. I was having trouble financially whilst self employed waiting for our business to sell and at the time contacted The Post Office credit card and asked for assistance (as you're advised to do) and they put me on an agreed reduced payment plan,

It's the risk you pose as a borrower that determines what options are available. Lenders can choose their customers. You are competing with borrowers with better credit profiles and that therefore pose a lower risk.

Lenders aren't charities. Nor should other customers bear the cost of those that do default.