Large deposit but low income - advice

neilwchad

Hi,

I am lucky enough to have a large deposit to by a first home (40-50%). I am 37 and have two children. My partner works a zero hour contract so her income wouldn't count on the application.

Looking at buying a house, ideally for 90,000-100,000 but my income is low. I have a 40% deposit but my bank offered AIP for the same amount even though I have a large deposit. I wasn't sure if I was to thank them for the offer or be insulted.

I have no credit issues and no debit. Never been i debit never missed a payment in my life. Been with my bank for over 30 years. I pay more in rent than I would if I could secure 60% mortgage I ideally want.

Without the deposit I have the AIP offer from my bank wouldn't buy me a house with basic fixtures and fittings to move in to in one of the cheapest places to live in the UK! Luckily I have a large deposit. Is anyone in a similar position. Is it worth exploring brokers and seeing other high street lenders and chances of getting 60% mortgage.

There are many people in my position but everyone seems to think we all earn c.25,000 a year. It's so frustrating.

Any advice is greatly appreciated.

kingstreet

Affordability is king, regardless of the deposit you have.

How have you established your partner's income can't be taken into account? Spoken to an independent broker or two?

ACG

Your income can support a Mortgage of £x regardless of whether you have £1,000 deposit or £1,000,000.

0 hour contracts can be used for income with some lenders, typically she would need to have been there for a while but I would speak to a broker if you need her income to see what cna be done.

Debtslayer

What is your salary?
If I were you I'd contact an Independant broker and see what they say. They do this day in and day out and would know best lenders to approach for you.

lauren_hb

neilwchad wrote: »

Hi,

There are many people in my position but everyone seems to think we all earn c.25,000 a year. It's so frustrating.

Any advice is greatly appreciated.

I share your frustration, we've saved a 50k deposit yet I'm in a low income job so can't borrow very much. Partner on a fixed term contract, higher paid than me but doesn't qualify for a mortgage. Very frustrating that we've saved and can't get anywhere with it.

kingstreet

Who told you someone on a fixed term contract doesn't qualify for a mortgage?

lauren_hb

kingstreet wrote: »

Who told you someone on a fixed term contract doesn't qualify for a mortgage?

A few people, but please correct me if it's wrong. He's on a 12 month fixed term contract, no previous employment before this as he was a family carer.

kingstreet

It's not cut and dried.

It will depend on the loan to value and rest of the case data.

I've put in a request today for a case which doesn't fit the lender's criteria exactly, but I'm hoping they will say "yes, okay if it passes the credit score, we'll do it."

It's a fixed term contract ending September 2017 when the applicant was in full time education prior to this.

Brokers have to work to get business through. They have to carefully select the lender they approach and make the case for it being accepted.

lauren_hb

kingstreet wrote: »

It's not cut and dried.

It will depend on the loan to value and rest of the case data.

I've put in a request today for a case which doesn't fit the lender's criteria exactly, but I'm hoping they will say "yes, okay if it passes the credit score, we'll do it."

It's a fixed term contract ending September 2017 when the applicant was in full time education prior to this.

Brokers have to work to get business through. They have to carefully select the lender they approach and make the case for it being accepted.

Thank you, it helps to hear something like this when all I've heard is negativity.
We are going to a broker once his probationary period at work is complete, as besides his contract being an issue from the research we've done all our other circumstances are positive.
Thanks again.

neilwchad

Debtslayer wrote: »

What is your salary?
If I were you I'd contact an Independant broker and see what they say. They do this day in and day out and would know best lenders to approach for you.

16,500. Not great but as i live somewhere cheap to buy i thought i might get at 60,000 with that salary.

Debtslayer

neilwchad wrote: »

16,500. Not great but as i live somewhere cheap to buy i thought i might get at 60,000 with that salary.

You should be able to get 66k (4x salary), unless there are other factors such as high childcare costs ruling you out on affordability.

Definitely go and see an independent mortgage broker. They will put in all the work to find you a mortgage.

Good Luck and let us know how you get on