Mortgage Enquiry - What we are entitled to?

greenbluegreen

Hi guys,
Me and my partner are looking to step step on the ladder as a first time buyers.
I am very lucky to be offered help with the deposit from my step dad. I'll try to explain our situation as detailed as possible, hoping to get an idea what we possibly be offered in terms of size of the loan. 
1) I am employed - on 27k per year. Been with the company for 16 months.
2) She is self-employed (CIS) since last week / Agency worker (PAYE) since September - combined this will be around £600 before tax per week. That's two different jobs.
3) Deposit is: 50k
4) My debt is 10k in total (Loan + Credit Card).
Question here is - am I clearing the debt with the deposit money and put 40k for deposit or keep it and use the whole 50k upfront.
5) My Credit score - 824/1000 (checkmyfile.co.uk)
6) Hers - 677/1000
7) Total Value of the property - 200,000-220,000 (~75% LTV if I'm not mistaken)
My partner moved here from abroad in July 2019 so in terms of Tax Returns she will not have anything to show. A friend of mine recently got on to the ladder by only showing 6 months worth of payslips (self-employed) and no tax return, that was with Halifax. I am pretty sure there will be more lenders willing to consider only payslips. My case is quite straightforward, hers on the other hand is a bit tricky. I have set myself a deadline of June where I will start some hard searches with the lenders to see what we can be offered - this is to allow some time for her to build some income/history with her both employments. I hope I haven't missed key information. 

Can you give me some guidance on what's possible considering our situation? Any information will be really useful for both of us!
Many thanks,
green 

[Deleted User]

Halifax are the most well known for doing CIS cases and tends to be the go to lender for them. I just did one with Barclays but they need 2 years UK address history so wouldn't work for your situation. 

There are only a handful of lenders that lend with payslips rather than accounts and I can't think off the top of my head of any others that don't have a minimum address history. 

Happy for any other brokers to correct me but I think you would be very limited based on address history if using cis income. 

Maybe worth seeing if it can sneak through on the numbers with your job and her agency work alone

greenbluegreen

Deleted_User said:

Halifax are the most well known for doing CIS cases and tends to be the go to lender for them. I just did one with Barclays but they need 2 years UK address history so wouldn't work for your situation. 

There are only a handful of lenders that lend with payslips rather than accounts and I can't think off the top of my head of any others that don't have a minimum address history. 

Happy for any other brokers to correct me but I think you would be very limited based on address history if using cis income. 

Maybe worth seeing if it can sneak through on the numbers with your job and her agency work alone

Thank you for the quick reply!
So "every little helps" is not quite how it works then? Are you suggesting it's best not to mention self-employment and just go by agency work income? After all I'll be looking at around 150-160k total amount of the loan, e.g. roughly estimated 40-50k more than what I'm going to possibly be offered on my own - or again, it's not how it works? 

greenbluegreen

I hope there are more options, is there anyone else here who can advise? 
Thanks again!

csgohan4

generally you can borrow x4.5 of total gross income not including debts, but where one is self employed, lenders prefer to have at least 1 years of SA302 accounts, but the more the better. 

Speak to a broker to assess your own circumstances and go from there. However the limited credit history may impact negatively on your partner. 

[Deleted User]

The majority of lenders require a 3 year UK address history in order to lend.    There are a fairly large but still limited pool of lenders who lend with less.   You are looking to buy when your partner will have about 1 year of UK address history,   this will limit you to a small number of lenders. 

This small number of lenders may include the best lender on the market.  It might not.  Rates change daily so no point in comparing them just now. 
With the type of income involved in the case and the length of time in the UK I personally cant see more than 1 or 2 lenders being able to lend to you as a couple. 

Having only 1 or 2 lenders available to choose from isn't necessarily a bad thing. Its only a problem if they aren't offering good deals.   
Lets say for example that Halifax is your only option (i am not saying it is, that would be advice, which this isn't) , they are currently only going to be a few £ more each month than the best deal (which you wouldn't qualify for).  Most clients I see are happy to pay a couple of quid extra if I advise that the application will sail through as opposed to a lender that might turn it round for a few weeks before making a decision.

Its difficult to help further as this site is for guidance, not advice.    My guidance to you would be to meet a broker and see what actual options there are.  It might be you only have 1 but you are perfectly happy with it so it doesnt matter you dont have other options

greenbluegreen

Deleted_User said:

The majority of lenders require a 3 year UK address history in order to lend.    There are a fairly large but still limited pool of lenders who lend with less.   You are looking to buy when your partner will have about 1 year of UK address history,   this will limit you to a small number of lenders. 

This small number of lenders may include the best lender on the market.  It might not.  Rates change daily so no point in comparing them just now. 
With the type of income involved in the case and the length of time in the UK I personally cant see more than 1 or 2 lenders being able to lend to you as a couple. 

Having only 1 or 2 lenders available to choose from isn't necessarily a bad thing. Its only a problem if they aren't offering good deals.   
Lets say for example that Halifax is your only option (i am not saying it is, that would be advice, which this isn't) , they are currently only going to be a few £ more each month than the best deal (which you wouldn't qualify for).  Most clients I see are happy to pay a couple of quid extra if I advise that the application will sail through as opposed to a lender that might turn it round for a few weeks before making a decision.

Its difficult to help further as this site is for guidance, not advice.    My guidance to you would be to meet a broker and see what actual options there are.  It might be you only have 1 but you are perfectly happy with it so it doesnt matter you dont have other options

You're absolutely right, this was the case with my friend, he's perfectly happy with what Halifax offered him. But I'll follow your guidance and wait for her to make a year in the country first. I've tried couple of brokers, but they all said no lender is happy with 0 hour contract and limited credit history/address history. 

Thanks very much!