Can I get a mortgage on a temporary work contract?

monicamj

Hello, I am a first time poster.

Can anyone tell me how likely it is for that I could get a mortgage whilst in a temporary job?

I am currently in a job with a fixed term contract that was due to end in December but has recently been extended to the end of March; every time my contract reaches the end it just gets extended.

My wage is low (16,000) and my OH is has just started job that is part time contracted only to 10 hours a week on min wage.

I only want to get a mortgage for around 60K but unfortunately I also have a poor credit score due to a CCJ (currently being contested - I do not owe the money) and a few late payments on credit cards.

I don't really want to try for a mortgage if I won't get one as I don't want to harm my credit rating any further.

Any help will be most gratefully received.

poppy10_2

monicamj wrote: »

Can anyone tell me how likely it is for that I could get a mortgage whilst in a temporary job?

As likely as this happening:
http://www.wisebread.com/files/fruganomics/wisebread_imce/Hell_freezing_over.jpg

Sorry! :money:

herbiesjp

WHat is the property value?

What deposit do you have?

monicamj

Value is 60K, Deposit is Zero. So 100%

herbiesjp

How long ago was the CCJ and how much was it for?

I would think though, that if your Experian or Equifax scores are low, then in the current climate, it will be difficult for you to get the mortgage agreed.

Get up to date copies of your credit files from Equifax and Experian.

Dan_Collins_2

This is an easy one but maybe not the answer you want to hear. Get the CCJ thing cleared and sorted, other wise unless you can prove it was not meant to be it will go against you. This means you will have to go with a lender like Future with a poor rate to reflect your credit file. Now once your credit file is sorted you will have more of a chance. You may also have to wait until your OH has had his contract renewed. Even then you may still struggle.

Just being honest

monicamj

Thanks to both of you - the CCJ is for £150 and I have recently sent off proof that the bill is not mine but I haven't heard anything back yet from them, it is a water bill for an address I didn't live at. It is recent - I got the letter a couple of months ago. I only found out about it from getting a credit report from call credit, it wasn't on experian or equifax at the time as they had sent a letter to the address that the bill is for.

I wouldn't mind being on a high interest rate at the moment as I am paying rent. I feel that I would rather pay interest on a high rate mortgage than put money into someone else's pocket. Provided that I could change to a better rate after a couple of years.

This house is much cheaper than the average house price and I think that another one like this won't come around soon, if I wait I will likely have to pay 90-100K and hence have a much more expensive mortgage. Or is my logic flawed?

herbiesjp

Well if the CCJ is not yours then definitley put a notice of correction on both credit files.

You should be able to get standard 100% mortgage deals assuming you meet the criteria of the lenders - more discussion would be needed with an adviser to make sure this would be the case and give you an idea of monthly mortgages costs.

monicamj

Thanks, I am going to speak to an adviser - then I will at least know my position. If I don't get a mortgage now I will try again when my credit has improved - and hope to find another bargain house!

desperateforahome

I need to know the answer to this, me and my partner are looking to buy a home on the home buy direct scheme which means we need the mortgage for 70% of the house price which is £170,000 im on a temporary two year working contract with the DWP and my partner earns £20,000 and is permenant, do you think we'll come across any difficulties?

Muhasib

desperateforahome wrote: »

I need to know the answer to this, me and my partner are looking to buy a home on the home buy direct scheme which means we need the mortgage for 70% of the house price which is £170,000 im on a temporary two year working contract with the DWP and my partner earns £20,000 and is permenant, do you think we'll come across any difficulties?

There is an affordability check for HBD and the publicity I recall states £26k is the lowest annual income they reckon on being ok. Recently the lenders involved are asking for a 5% deposit, as a new build the mortgage valuation may be short of what the builder has the property priced at, it does take time for some applications to go through (eg months) and you're probably looking at a stamp duty of 1% as the temporary cut ends at the end of December.

Of course, finally many on MSE will advise you to wait until next year as they are expecting a fall in house prices once interest rates and the recession have a bigger influence on the market.