How does your job affect an application?

jde-tv

My partner has just been accepted for a two year graduate scheme near Liverpool... he starts in September. I plan on moving there with him, it will hopefully only take me a couple of months to get the kind of job i'm after. Will this be ok for a mortgage application, the fact that I will have only been in my new (permanent) job for a month? And that he is on a two year graduate scheme (They keep them on after, but It's still called a gradate scheme?)

On top of this we are both in our over drafts and will be until September (and we could be applying for a mortgage as early as December) I also have a loan for £6000 that I only got in February!

We also only have a 5% deposit and are both 25 (I don't know if age matters)

Its not looking very likely that we will be accepted is it?

Boredatwrork

Without permanent employment I think we both know the answer im afraid.

If I were you id move there find a job, rent for twelve months, that will also allow you to get a feel for the area and explore enough of it to know where you might want to live, the fact you are even considering a mortgage at 25 is fantastic and puts you ahead of many people, You have plenty of time.
Banks want 3-6 months wage slips. Also use your savings to pay off the loan (as much as you can without extra charges).

Treat the year as an oppotunity to get your finances in order, save money and dont go overdrawn. So your affairs look good.

jde-tv

Boredatwrork wrote: »

Without pemenant employment I think we both know the answer im afraid.

If I were you id move there find a job, rent for twelve months, that will also allow you to get a feel for the area and explore enough of it to know where you might want to live, the fact you are even considering a mortgage at 25 is fantastic and puts you ahead of many people, You have plenty of time.
Banks want 3-6 months wage slips. Also use your savings to pay off the loan (as much as you can without extra charges).

Treat the year as an oppotuinty to get your finances in order, save money and dont go overdrawn. So your look good after that.

Thanks This is what I have wanted to do all along tbh, but my partners parents are pushing for us to get a mortgage (they live there and my partner is from Liverpool originally so I cant use the excuse of finding the best area to live). His parents keep talking about how the the interest rates are so low and it could all change any second! They are basically saying that now is our best chance to ever get on the ladder!

Like you, I don't think we will be accepted anyway, but I might just go along with it for now... At least I will be prepared for plan B!

Boredatwrork

Go to a Broker get free advice, and then you will at least have an offical answer that should get them off your case for a while.

In regards to the interest rates, Obviously they have a point, but its all a guess at the moment, the BOE have just announced they are not putting them up again and for what its worth (probably nothing), they are now Guestimating 2020 before any real rise. Obviously with the EU stuff, its hard to tell, but theres plenty of talk about markets slowing down, Personally I cant see a lot of movement for the next year or two.

Banks interest rates are slowly creeping up (in reality these are the ones to watch), but still nothing on what they were pre crash 2008. and the deals although not quite as good as they were, really are still pretty good. Halifax the largest lender (and by far not the most competitive), worst mortgages are still less than 4.5%.

As I said, just try and live within your means, clear the debts and save, the banks arent expecting you to be the most efficient people in the world, just responsible enough. Also take the time to try and understand how a mortgage works, what LTV means, what fees they whack on top and a general idea of interest rates keep track of one or two banks rates to get an idea, So then you will be confident when you wander into the estate agents and they start waffling Good Luck

Phil_H_MLIA(dip)_Cert_PFS

The number of schemes available at 95% is pitifully low despite the HTB initiative. Reducing your loan may well reduce your monthly expenditure but can you then save to replace the deposit?
Sometimes gut-reaction and personal choice do not go well with modern mortgage underwriting.
Paying your loan helps to establish your credit profile, which may then counter low scores due to short-term employment and address history.
There are lenders that will accept non-permanent employment, but these are not necessarily the same lenders that work to 95%
Whilst it may initially seem an impossible task, I would personally suggest that you consider keeping the loan and (don't shoot me) attempting to get that 5% to 10% as it opens the door to many more lenders/schemes.
You can always repay the loan from surplus capital later more easily than you can raise an additional loan.