Problem getting a mortgage

Anand

Hi,
Me and my wife are about trying to buy a house. However we are having issues about getting a mortgage.

This is to do with the fact that my wife has a 6-month contract position at work, and her employer won't guarantee a renewal.
We are 100% confident that she will get another job after the contact is up. I have a stable long term job, but my salary alone wont be sufficient to borrow the amount we want.

The property is 200k, The developer is putting down 5% deposit, we are putting down 10% deposit.... so want to borrow 170k.
We both have an excellent credit history. We know we can easily afford the payments.

Nationwide (through a financial adviser) have said they will not lend if her job is contract without proof of renewal.

Does any body have any ideas what our options are?

Thanks,
Anand.

Biggie

may be a self cert mortgage.

why they look at afforablity rather then salaries.

Not to sure but they may still expect you to be in permant emloyeement.

btw- you may be better posting this on one of the other forums about mortgages.

moneysavinmonkey

is you wife on a 6 month probation and then will get a permanent position after that who is she always going to be on 6 month contracts?

Anand

Its was just a one off job she decided would be good experience. After the six months she intends to start a permanent long term job. Probably at a different company tho. She is a professional (currently training to be an chartered accountant), so will definitely be working somewhere.

Cheers,
Anand

Conrad

Self cert mortgage companies have to lend responsibly. You may have difficulty when it comes to the mandatory self cert question which is; "Why is a self cert application sought"?

A fixed short term employment period may not go down well as the lender will be concerned you may later claim you were missold a mortgage and the lender was irresponsible.

Also note than some self cert lenders are drawing back from new build property so check the property is suitable security at the earliest opportunity.

moneysavinmonkey

just wait six months then until she has a permanent job.

If you get a mortgage now will likely be sub-prime due to her situation so will end up costing you a lot over the term of the mortgage.

No harm in waiting a little while.

Anand

The only problem with that is that we have paid a £500 resevation fee on a property.

We did this based on talking to an alliance & Leicester sales person, who said it should be ok that she is in contract work, providing she can provide pay slips

Biggie

moneysavinmonkey wrote: »

just wait six months then until she has a permanent job.

If you get a mortgage now will likely be sub-prime due to her situation so will end up costing you a lot over the term of the mortgage.

No harm in waiting a little while.

but the OP has already completed, so I imagaine if this isn't done within a set time they'll be in breach of contract and stand to lose their 10%

the_incredible_mulk

Hi Anand, Im a mortgage broker and im not going to step on your advisers toes but do look at the self cert option since your wife is earning income but its difficult to prove that she is going to be there long term. You may pay a slightly higher interest rate on the deal but you could take the sting out of if by going interest only until your wife qualifies and and then flip the whole lot over on to a mainstream repayment deal.

Clearly its a slightly more expensive way of getting your hands on the property but its an option if you really want it.

Nationwide does have a self cert subsidery lender that your advisor coud liase with.

Good luck

SquatNow

Anand wrote: »

The only problem with that is that we have paid a £500 resevation fee on a property.

We did this based on talking to an alliance & Leicester sales person, who said it should be ok that she is in contract work, providing she can provide pay slips

Did you get that in writing? If not you just lost £500.

If you have got it in writing it's time to start sueing the A&L sales muppet.

TBH if I was a bank I wouldn't offer you a joint loan in your circumstances.

No offence intended, but your wife is doing a job for 6 months as she thought it "would be good experience" and then plans to start looking for a permanent job... not the sort of people I would lend £170,000 too. You're far to vague... you don't even have an actual PLAN on what you wife will do to pay the mortgage beyond "get a permanent job". What sort of job? Earning how much? What if the job turns out to be in another town?

Wait until you both are stable (i.e. have permenant jobs) then try again.

PasturesNew

A&L have been hit hard recently by their poor choices in mortgage-lending.

Their rules will have changed. What any sales person told you, say, 6 weeks ago would probably be very different to what they would say to you today.

And, of course, they are in sales ..... so keen to make a sale to keep their job.

I'd say: write off the £500 now, wait and save more. Then buy something when your wife is in permanent employment as you'll get a better rate and will quickly recoup that £500 in lower interest charges... in fact, ask her to do the maths... she's an accountant