Mortgage as an Apprentice

curlymckinnon

My son starts a degree apprenticeship in September -
a). will he be able to get a mortgage. Earnings: 14200 pa; value property: 160,000; LTV 40% ?
b). will he be able to get one ASAP in sept or will he have to wait until he's got a series of pay slips? (He has signed an agreement to stay for a min of 6 years..). Thanks

spadoosh

So a £64k mortgage? He'll be at a top end of what they will lend. With his earning being quite low and thus disposable income low i suspect there might be affordability issues.

Different lenders want different things. Some are happy with seeing anything that suggests a guaranteed income others will want 6 months payslips/p60's etc etc.

Id recommend speaking to a mortgage adviser who will be able to give you a clearer idea on which lenders might lend to him and what their requirements will be.

ACG

Is it income as in paid income subject to tax or is it stipend?
In either case, it will be tricky but not impossible - subject to affordability. As mentioned above, affordability will be tight but I think it should pass.

curlymckinnon

Thank you - it is a paid position and subject to tax as per normal regulation.

ACG

That will make it easier than the stipend.

I think if it passes affordability, you will be looking at normal rates.