First Time Buyer..Unique Situation

amesyp

Hi MSE's

My other half and I have put a reserve on a new property in Derby.

Currently, I work in London but I am looking to move to a job in Birmingham, before Christmas if I can. My partner is on an NHS zero-hours clerical bank contract (has been for 10 months) and is due to start a fixed term 1 year contract in the next few months (this will then be extended to a full time contract).

We have put a reserve on a new property and I can get the mortgage we need on just my salary alone, in principal. Due to the uncertain nature of his employment, we felt this was the best and easiest way forward (open to advise if anyone has gotten a mortgage with these types of contract.)

My query is, will the mortgage assessment take into account the fact I currently work in London. London to Derby is £800pm commuting costs, on top of bills, mortgage payments etc means, based on my salary alone, the mortgage we need may not be achievable.

My questions are:

1. Will they be able to take my partners work/contract into account for a joint mortgage?

2. If not, will they take into account the fact he will be living there, and sharing all bills, risk and burden with me (we are getting a document drawn up to that effect).

3. Will they take my commuting costs now into account, or when I move to Birmingham (job tbc, the salary will be roughly the same or a little less, but won't make much of a difference).

4. Do we have any other options to guarantee payment on the mortgage we need? I have, in principal got an agreement but I'm worried when they start the assessment, it may not pan out.

Has anyone done anything like this before?

Grateful for any help, this is our first property and it is a minefield!!

Amy

kingstreet

From whom have you sought mortgage advice to be able to reserve now?

Your job location and new home will be an issue for many lenders if you have no new job already arranged.

You commuting costs will be take into account for affordability by all lenders.

Your partner's income will be ignored as the zero hours contract has not run long enough and the new contract will be unacceptable to many lender.

If he is a party to the mortgage, but with £0 income, you will have to be able to afford the mortgage and other costs alone. Your agreement means nothing to a lender.

There is no way of guaranteeing payment.

Hopefully, you have a very good broker working on this for you as there are several potential issues facing you.

amesyp

I spoke with several, my own broker along with the one the developer requires us to use before we reserve.


If his contract is fixed term, I thought he could get a mortgage providing it had at least 6 months remaining? Which it will do as it is for a year before becoming permanent.


Is the option of a guarantor mortgage not open to us?

kingstreet

There are very few lenders accepting guarantors these days and the guarantor needs to be able to cover the whole mortgage for the whole term, so (eg) older parents find it difficult to meet the requirements.

Lenders usually want to see the contract having been renewed once already if it's only twelve months in duration.

Good job you have people working on it for you, as I don't have a lender for the case which is springing readily to mind.