job decision by tomorrow...help

pollyannaL

hi,

I am currently saving for a house and thought that i needed to change jobs in order to get a higher salary to buy a house in 2017.

So, I recently got the new job offer. The new job will pay £5k more per year than my current job. Although this doesn't sound a lot, at 4x my salary it really would count mortgage wise...

I went to my boss with intension to hand in notice last week and they said before you do is there anything we can do to help you stay. I obviously said yes, match the pay I have been offered (current job paying me basic salary despite my 6 years professional experience - they say as i have been out of the country working I need to start from the bottom salary). They can't either match salary or increase salary. However, I am on a senior secondment which they said they can extend, and this secondment pays as well as the new job offer. They have also said an internal senior job will be advertised in Jan & to apply for that.

My current job is agile working, and I work from home. The work is demanding and people are friendly. Agile working is a huge benefit for me as I have a dog & don't have to rely on family members to look after the dog everyday. The new job won't be. Also, the location of the new job is pretty depressing for various personal reasons.....

I have to decide by tomorrow.

Do i go with the new job, higher pay and be slightly depressed due to the job/ type of work.

Or, say i want to stay and hopefully get senior job next year......

Also, do mortgage lenders see the contract or just payslips. If its payslips I should be ok as my recent payslips shows the higher pay; its just my contract and base salary which is low.


Any help would be appreciated.
Thanks

marliepanda

You've pretty much answered your own question...

Fireflyaway

Stay. If you apply for a mortgage and haven't been in a job very long that could count against you. Sounds like you enjoy it and there are new opportunities coming. Could you increase your deposit to make up for the lower salary?

TELLIT01

Increased salary from a temporary secondment is unlikely to be taken into account on the mortgage application. The bigger question is do you want to move to a new job, which you are already suggesting you don't really want and would be unhappy in, purely for the money?

pollyannaL

thank you...i declined the new job offer. I feel very relaxed and that it was the best decision. Like you all said, I answered my own question and it was obvious i didn't want to move.

It is a shame my temporary secondment pay slips won't be taken into account?
I am saving 1200 a month at the moment and don't feel i can save more than that. The deposit's adding up but need ideally need 70k plus due to low salary.

Lesson i have leant = money isn't everything.

Stigy

pollyannaL wrote: »

thank you...i declined the new job offer. I feel very relaxed and that it was the best decision. Like you all said, I answered my own question and it was obvious i didn't want to move.

It is a shame my temporary secondment pay slips won't be taken into account?
I am saving 1200 a month at the moment and don't feel i can save more than that. The deposit's adding up but need ideally need 70k plus due to low salary.

Lesson i have leant = money isn't everything.

Not wanting to venture off topic too much here, but have you considered Help to Buy or similar?

zagubov

Sounds like you made the right decision. Remember in the new job you'd have had no job security for two years anyway and there would be a learning curve as you adjust to a new environment.

TELLIT01

pollyannaL wrote: »

It is a shame my temporary secondment pay slips won't be taken into account?

I totally disagree with you there. If temporary pay increases were used as the basis for the amount borrowed on a mortgage, what happens when that ceases and income drops. It's actually doing nobody any good to get mortgages they will struggle to pay.

pollyannaL

Stigy - thanks - i have considered HTB but have a decent amount deposit already 40k + and do not want a new build. Want a house with character/ old features....fussy i know...I will just frantically save for the next half year.

The jobs been readvertised today already! I don't regret it still, so was definately best decision. I can enjoy Christmas now without the anxiety of starting a new job next year,

@Tellit01 - well, i am hoping in a few months i would have secured a senior perm job anyway so would be a continuation of higher payslips. But, i understand what you are saying. If i didn't get that, i would have possibly secured a higher mortgage than i could afford.

Thanks for your help,

TELLIT01

pollyannaL wrote: »

@Tellit01 - well, i am hoping in a few months i would have secured a senior perm job anyway so would be a continuation of higher payslips. But, i understand what you are saying. If i didn't get that, i would have possibly secured a higher mortgage than i could afford.

Thanks for your help,

The reason for my concern about people over stretching themselves is seared in my mind from shortly after we purchased our current house in the late 1980's. We could manage the mortgage payments OK and then there was a massive hike, virtually doubling the interest rate, to 15%. There was no way we could service it at that level for any length of time and thankfully the rate didn't stay that high for long.
I can imagine the situation now with interest rates being at rock bottom. If somebody maxed themselves out at the current rate and then rates increased by 2 or 3 % could they cope? I understand the massive problems with getting on the housing ladder in the first place, so it's possibly even more important now that people don't overstretch and lose their house again.