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Pre-Paying A Mortgage
birdofafeather
Posts: 31 Forumite
Re: First Time Buyer Mortgage.
When renting houses I've known people pay the rent 6 months upfront when they don't meet all the relevant requirements of the credit reference.
Is there any possibility mortgage lenders would consider this approach if your projected annual income is in excess of mortgage limit but you don't have the full 6 months employment history they'd normally look for. I.e Using some of the remainder of savings after the deposit as a mortgage fund to show you can meet the monthly repayments for the foreseeable future?
Or would it be better to put that 6 months mortgage fund towards renting somewhere, even though that feels like a colossal waste of money in the long term?
When renting houses I've known people pay the rent 6 months upfront when they don't meet all the relevant requirements of the credit reference.
Is there any possibility mortgage lenders would consider this approach if your projected annual income is in excess of mortgage limit but you don't have the full 6 months employment history they'd normally look for. I.e Using some of the remainder of savings after the deposit as a mortgage fund to show you can meet the monthly repayments for the foreseeable future?
Or would it be better to put that 6 months mortgage fund towards renting somewhere, even though that feels like a colossal waste of money in the long term?
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Is there any possibility mortgage lenders would consider this approach if your projected annual income is in excess of mortgage limit but you don't have the full 6 months employment history they'd normally look for.
No. paying an extra 6 months up front doesnt reduce any risk whatsoever.to show you can meet the monthly repayments for the foreseeable future?
A mortgage is usually for 25-30 years. The foreseeable future is counted in years not months.
There are lenders that dont need 6 months.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
There are high street and non high street lenders who don't require six months in current employment. Use a broker.I am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Either save up for another 6 months or use all the money to reduce the LTV, you will pay less interest the more you put down in your deposit.0
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I have no idea where you got this minimum six month's employed idea from.
Many Lenders will lend after three months employed, some immediately on employment.
As Neutrino says - use a BrokerI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Plenty of lenders don't need anywhere close to 6 months employment history. Our current mortgage offer from Halifax (through a broker) is partly based on my partner's 1 month old job. All Halifax needed was the latest payslip.
If you want a realistic assessment of your chances and how much you can potentially borrow, do contact a mortgage broker. See Martin's recommendations in the section 'Finding the top UK mortgage brokers' here https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/birdofafeather wrote: »but you don't have the full 6 months employment history they'd normally look for.0
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