Discharge from Army/work and mortgage

wannabecivvi

Afternoon gents. I am new and could use some help please.
I have just done a little over 8 years in the Army but I am desperate to get out.
I have alot of advice to seek as Army don't seem interested as I am other end of the country I would like to eventually live. Anyway I will start with these queries hope you can help me. I have a deposit around 10% mark.

I am pretty confident I will find work but at least in the building game as I have a trade under my belt. But to make money I would have to sub-contract.

If I got out and rented, how long would it be working as a 'subby' before I could buy a house?

Following a conversation today with my bosses I told them my plan to buy a house while I still worked foe Army. Then I would just roll into trade work etc etc.
One of them said I would have to be 'extremely careful' as if lender found out I was getting out the forces 6 months after obtaining a mortgage they would void mortgage and keep deposit, can anybody share thoughs on this as this is my main worry.

I know alot of lads that get a mortgage before they get out, was just wondering if there is anything to be aware of or if this was yet another 'scare mungering' tactic from my boss.

Thanks in advance
kev

Westbeef

I'm not qualified so don't take it for definite, but surely after they accept your mortgage and you've been in the house making regular payments, they won't question anything as long as they still receive the payments every month. They will only look into your earnings again when you come to re-mortgage.

wannabecivvi

Ok thanks I appreciate your reply. I really hope so.

kingstreet

wannabecivvi wrote: »

If I got out and rented, how long would it be working as a 'subby' before I could buy a house?

Typically, you'll need six months invoices and bank statements which confirm the payments into your account match what was expected.

amnblog

People change jobs and careers constantly once they have a mortgage.

It is making those changes shortly before they apply that causes the difficulty.

wannabecivvi

Ok. Thankyou all so much. Seems like a ploy from my boss to put me off getting out.

Kingstreet. Is the 6 months for both permanent and self employment?

kingstreet

wannabecivvi wrote: »

Kingstreet. Is the 6 months for both permanent and self employment?

You asked about sub-contracting, so my answer was specific to that.

It would be different for the others you mention where we could now place a new employee with a contract and a commencement date in the future; or for newly self-employed where a small number of lenders will accept one year's trading.

wannabecivvi

Ok thanks. Just I was under the impression (from a guy at work, ironically) that it could take two years of bookeeping being self employed/sub-contracted. I thought they were both same thing?

kingstreet

They may be viewed the same way by some lenders.

What I've given you is the best case scenario for each instance.

For an employee it's possible to get a mortgage before they start work.

For a sub-contractor, the minimum period is six months.

For someone self-employed, the minimum period is twelve months.

Your friend is saying it could take two years, which is also true if you go to the wrong lender, or don't use a capable broker.

wannabecivvi

Thanks kingstreet that has cleared everything up and I am relieved to say the least. Thanks

Trying_to_be_good

wannabecivvie -make sure you get the most from your resettlement, including the courses available on setting yourself up as self-employed or sub-contacting, the advantages and disadvantages of each and the administration and financial planning you'll need to be doing for yourself - there's an awful lot to think about.

And a small tip - don't assume everyone is "gents" as you do in your first post, there are lots of helpful ladies here and in the world out there