Frustrated - Any Ideas

Claire57

Hi I am looking to purchase a house in the next three months but am unable to get a mortgage because my outgoings are too high. I am due a lump sum in March and will clear my debts with it (and have plenty to spare)thereby reducing my outgoings dramatically, however I cannot find anyone that will give me a mortgage based upon my current situation (obviously). If I attempt to take another loan this will just exacerbate the current situation. My credit rating is excellent :mad: what can I do ?? Please help me Im so desparate now !

Lavendyr

I would just wait until March - by which time house prices may have dipped even further anyway. Is there any reason you need to buy in the next three months?

Claire57

I have to move due to change of employment and area. Larger income etc .....

no1gymbunny

When you apply for a mortgage you will need to have been in your job for a certain amount of time. I bought a property earlier this year, but I'd only been in my job since December 06. I needed to be out of my 'probabtion period', so you may have to wait a bit longer.

Lavendyr

Oh I see - any chance you can rent until you can be accepted for a mortgage then?

carpetbelly

Rent. That's the easiest thing. Get your debt cleared. Get your outgoings reduced. Earn that bigger salary, show how much you can save and watch how much you can borrow get bigger and thus a nicer house available to you. Don't rush it, no need especially with the market in a state of flux.

worrypants

re time in job

not always the case that you have to be in employment for any length of time

we got a halifax mortgage and made the application before my husband had even started the job, just had to show a letter from employer confriming he had a job to start, start date and salary.
He wasnt going from one job to another either as we had taken a few months break from working.

So it can be done
good luck

trulysaintly

Hi there,

I would say that the key issue is to reduce your outgoings first - lenders are being very very careful, rightly so, that they do not place you in a more precarious position.

Your length of employment should not cause major issues - if you approach a mortgage broker, make him/her fully aware of the conditions of your employment (probationary period or length of contract).

Best of luck, my advice would be to rent for six months to get settled - at least then if things don't work out, you can still do something different.

All the best.

pinkshoes

Claire57 wrote: »

I have to move due to change of employment and area. Larger income etc .....

Rent somewhere and wait until March. If you're moving to a new area, then it's unwise to buy until you know the area reasonably well. I'm sure you've heard of the expression "Location location location"!

By then you'll have a much higher salary, so will have more options with a 3x salary mortgage, and will have paid off your debts, and saved a larger (preferably 10% of more!) deposit for the house.

PasturesNew

Claire57 wrote: »

I have to move due to change of employment and area. Larger income etc .....

Wait... you might hate the job/area.
Rent for the first 6 months and look around at leisure. There's no rush.

SquatNow

Given the current housing market, a 6-12 month wait will let you know how far prices are going to drop.

Also, you don't know if your new job will work out... you might hate it! if you rush to buy you could be stuck in a devaluing house in a job you don't like.