Looking to buy, have a house to sell but no jobs as yet!

BrennaBoy

Hi All,

Last October we bought a 100K house for cash in the North East of England, but it literally took all our cash/savings. We renovated it and are now looking to put it on the market for 115K as we are moving to Belfast. Providing it sells OK, we were going to use the proceeds as a deposit on a house with a mortgage to to it up.

We want to buy a new home to settle down in Belfast, but at the moment neither of us have a job yet in Belfast.

My question is - are there any options where we can use the house we have as collateral to get a mortgage even though we don't have a job yet or do we have to wait until the house in England has sold and either one or both of us have been in jobs for 3 months before we can approach a mortgage company. We can obviously rent in Belfast until we are able to secure a mortgage/property, but would like to buy a house as soon as possible to make a home.

Any advice, suggestions or thought from anyone would be very much appreciated.

Many thanks,

Brenna.

Ozzuk

With no income source you'll find it virtually impossible to get a mortgage, though it does depend somewhat on the LTV. Do you know Belfast? If not then it might be sensible to rent there first and get to know the areas you'd like to live in, rather than buy first and get the area wrong.

lookstraightahead

Rent first and get to know the area. You might also have to pass probation periods before you get a mortgage. Why the rush?

lisyloo

Another vote for renting first.
Get to know the area and past the probabtionary periods.

Unless you know Belfast how will you know which areas are nice and which have good public transport etc. Or indeed you won’t know your commutes until you have jobs.

Make much more sense to rent first.

foxy-stoat

No income = no mortgage

Annie35

No income = no rent too, catch 22?

letitbe90

It is not true that you have to have had a job for 3/6 months. Many lenders allow mortgage applications during probation (e.g. Halifax), as long as it is permanent employment.

hazyjo

letitbe90 wrote: »

It is not true that you have to have had a job for 3/6 months. Many lenders allow mortgage applications during probation (e.g. Halifax), as long as it is permanent employment.

Halifax state:

Probation

Income from probationary employment is only used where the probationary period is part of a permanent contract. If the contract is purely probationary with the employer having the option to terminate the contract then this income cannot be used.
It is important that probationary contracts are keyed accurately as follows:
Where the applicant receives an offer of permanent employment and the contract states an initial probationary period e.g. three or six months, it should be keyed as 'permanent'. The income will be used in the affordability assessment.
Where the applicant is offered a probationary contract, e.g. for three months, at the end of which the employer has the option to determine if a permanent contract will be offered, it should be keyed as ‘probationary’. The income will not be used in the affordability assessment.

So I suppose it depends how that probation period is worded by the employer.


I've always found things like teachers, nurses and service type jobs are fine. Not sure how my employer would word it though.

letitbe90

hazyjo wrote: »

Halifax state:

Probation

Income from probationary employment is only used where the probationary period is part of a permanent contract. If the contract is purely probationary with the employer having the option to terminate the contract then this income cannot be used.
It is important that probationary contracts are keyed accurately as follows:
Where the applicant receives an offer of permanent employment and the contract states an initial probationary period e.g. three or six months, it should be keyed as 'permanent'. The income will be used in the affordability assessment.
Where the applicant is offered a probationary contract, e.g. for three months, at the end of which the employer has the option to determine if a permanent contract will be offered, it should be keyed as ‘probationary’. The income will not be used in the affordability assessment.

So I suppose it depends how that probation period is worded by the employer.


I've always found things like teachers, nurses and service type jobs are fine. Not sure how my employer would word it though.

Yep I've read the intermediary guide document. For most people, they usually fall under probationary periods during permanent jobs who usually wrongfully believe that they can't get a mortgage within a probationary period.

I also know some contractors who are able to get full value mortgages having worked a single day of a 6 month contract! Halifax are generally quite accommodating.

davidmcn

Annie35 wrote: »

No income = no rent too, catch 22?

Renting's feasible if you've got a large enough lump sum to use as a deposit / advance payment (and it sounds like the OP will).

Slithery

How on earth are you planning to get a mortgage when unemployed?