New Job and Mortgage

Noobie2011

Hoping someone can help on this while I am waiting for my broker to get back to me.

We are currently in the process of buying a new house and looking to go with Kensington due to some marks on our file in the recent 12 months.

It is based in a different city where my wife works so to date I have been looking for a new job to relocate there too.

The situation with the Lender is we have submitted all our documents such as Payslips etc and the broker is going through the application process this week after we got a DIP with them already.

I have been attending a couple of Interviews in the last few weeks and even though you can never be sure, one I had last week went really well and have also had a followup call regarding wages etc which although not certain does indicate an offer may be made. The new salary if get the job will be a few K more than my current and overall our financial situation would be much better than it is now than when we got the initial DIP.

However I understand I am more secure to a lender in my current role as been there 13 years as opposed to a new role as regardless of the increase in money I would have no years in service and likely be on a 3 month probationary period which is pretty much standard nowadays.

If I did get offered the job the likelyhood is due to my loyality with the current company they advised they would happily reduce my notice period as know my situation meaning I could start the new job if got it not long after potentially getting a Mortgage Offer but then by the tine completion comes around(looking like September) I would have been in the job long enough to be out of any probationary period.

So I will see what the broker says but just wondering if anyone else has been in this situation and what did you do as I do not want to lose the house on a technicality as you would call it but am really worried I would be faced with turning any good job opportunity down until I complete on the house or vica versa.

Also due to the marks on our credit in the last 12 months it is not like we have other lender options who may not see this job change as a problem if Kensington did.

Thanks for any advice

Richard_Pia

Depending on how far away the other city is, Kensington may query how you intend to commute from there to where your existing job is. If the commute isn't feasible then they it is probable that they won't use your existing income anyway.

Some lenders do not require you to have started a new job to use the new income, and a job offer confirming start date and salary may suffice. Probation periods can sometimes be ignored too. Like you say, however, your credit issues may prevent one of these lenders from lending in the first place. It would be a case of looking over your credit files and finding a lender whose criteria you met.

Noobie2011

Thanks Richard,

The commute should not be a problem as my commute now is around 1hr each way and from the new place it wil be about 1hr 30 until I started a new job and then would reduce to likely 20mins roughly.

Yes at the moment I have supplied my existing work payslips as that is where I currently work and what our DIP is based on and likely any new job would start after a Mortgage offer so no more payslips needed from then on if everything went smooth

Yeah our broker has already natrowed us down to Kensington due to the odd credit issues so with no other options if I did get a new job offer after the Mortgage offer and then told the lender this and they were not happy we would more than likely lose the new house if I accepted the offer

Noobie2011

So our broker has come back and advised any new job offer acceptance they woulld need to inform the lender which would have a negative impact on our application and cause the underwriters to do more digging so not really looking good and am in two minds now as to what to do if get an offer as at the moment a new job is up there as important as the house as never know when another opportunity would come along job wise where as we would be eligable to apply for a mortgage in 3 months again after probabtion.

The only option that may work is if I took a new job is I wait for 3 months to apply for a mortgage as the only risk is the new house builders pull out if they could not wait until July for us to show them a mortgage offer and the echange and complete 8-10 weeks left before the house is built??

Noobie2011

Have just been going through the options while waiting fir our Broker to get back to us as the current situation looks like Kensington will say I have to wait 3 months before Mortgage application so out of probation. Halifax and Natwest even though have no issue with the probation are declining us due to not meeting their credit score.

So the only 2 options we have left are:

If joint application - We speak to Taylor Wimpy and explain that we still want the house but Mortgage Offer will not come until July and see what they say

Single application - We look to just get the HTB mortgage in my wifes name as this removes the issue around my job probation and having checked her affordability with her wage she looks to be fine. However are the Lenders going to say no to a married couple with only one person getting the Mortgage. Also if we did this and it was say tight in affordability woukd my income be taken into account at all towards outgoings even though not on the Mortgage?

Thanks

Richard_Pia

Firstly, I would be concerned with the reason you were declined by NatWest and Halifax. Is there any adverse on your credit reports, arrears, defaults etc.?

Many lenders won't accept married couples with just one named on the mortgage but some will. If the application is in just you wife's name however, it wouldn't be possible to include your income for affordability.

Noobie2011

Richard_Pia wrote: »

Firstly, I would be concerned with the reason you were declined by NatWest and Halifax. Is there any adverse on your credit reports, arrears, defaults etc.?

Many lenders won't accept married couples with just one named on the mortgage but some will. If the application is in just you wife's name however, it wouldn't be possible to include your income for affordability.

So the reason we are not meeting the main lenders criteria is likely due to some credit issues in the past as between us we have about 3 late payments although looking at lending criteria the impression is this is not an issue. On speaking with our broker he is unsure why Halifax are refusing us but thinks it may be down to our credit utilisation as between us we have about 20k of Creit Cards and Overdrafts and only up until about 6 months ago were paying tge mininum so as it stands most are over 90% utilised. But the exact reason we will never know and our broker seems to think we are very close to acceptance.

Thought that would be the case with the married thing and it seems the likes of Halifax may not be bothered but our potential lender Kensington probably will so remove the job hurdle but face another.

Richard_Pia

That certainly sounds like it'd be the issue, high credit card utilisation and consistently being overdrawn will have a negative effect on your score. What LTV are you applying for? If you're able to increase your deposit it could be that you pass at a lower LTV, particularly with Halifax.

Noobie2011

Richard_Pia wrote: »

That certainly sounds like it'd be the issue, high credit card utilisation and consistently being overdrawn will have a negative effect on your score. What LTV are you applying for? If you're able to increase your deposit it could be that you pass at a lower LTV, particularly with Halifax.

Never been overdrawn so just the high utilisation which I think is the main issue but our affordability with both of us is fine even to the extent if my wofe applied on her own she still meets affordability.

Well it is 75% LTV as going through HTB and cannot really increase as most extra is going towards the cost of selling and buying a house.

We have asked the broker would clearing a couple of the smaller credit cards help utilisation and overall look but he advised he was unsure and been advised lowering the highter credit commitments would look better potentially. We have not got thousands spare but potentially have between 3-4k in the next couple of months so could clear debts if he though that would get us over the line with Halifax however when he has spoke to their BDM he got the impression we are close but cannot get specifics which I think is crazy but just the way it works I suppose

Richard_Pia

Your broker could still 'test' the AIP at a lower LTV, say 70%, to see if it passes.

I would think reducing the cards with high utilisation is more likely you help than clearing the smaller credit cards but it is difficult to say for sure. It may take a couple of months for your credit reports to be updated in any case so I'm not sure how much this would help you.

I think looking at another lender might be your best bet. Perhaps one that doesn't leave a hard footprint at AIP stage so it doesn't damage your credit score further.

Noobie2011

Richard_Pia wrote: »

Your broker could still 'test' the AIP at a lower LTV, say 70%, to see if it passes.

I would think reducing the cards with high utilisation is more likely you help than clearing the smaller credit cards but it is difficult to say for sure. It may take a couple of months for your credit reports to be updated in any case so I'm not sure how much this would help you.

I think looking at another lender might be your best bet. Perhaps one that doesn't leave a hard footprint at AIP stage so it doesn't damage your credit score further.

Yeah I am no expert so just presumed having overall less credit cards with higher utilisation would be better than more credit cards with lower utilisation but I get what you mean. Also paying off smaller credit cards would impact the overall utilisation ore than paying a bit off the higher cards but again it looks like that is not how it works. We did about 4 weeks ago pay about 1500 over all the credit cards to bring the utilisation down on every one to below 90% and some near 70%. But our credit reports have not updated yet so even though some of that money have been spent as some was petrol and food money the lower balances may have been there when the new credit report was update so will see when the next report comes out.

Yeah we have gone through a few with the broker for Soft Searching and speaking to the BDM and this is narrowed down with us doing HTB. To date the mainstream lenders we are not passing with and it looks like lenders like Kensington and Precise are the ones we are fitting with which up until my new Job Offer was fine as yes the Interest rate was higher but we had planned this and had a long term plan to resolve this after 2 years pending Interest Rates don't Sky Rocket.

We are between a rock and hard place really as the Lenders that are fine with our current credit rating will likely refuse us on the premise of my Job Offer whereas the like of Halifax would be fine with the Job Offer thing but are refusing us on our current credit rating!!!