Help to win over in-laws!

smc103

My husband has always been promised £20000 from his parents to be used as a deposit on a house (he has dipped in to pay off debts etc so £16k remains). Every time we approach the subject they say we need to see how much we can save first and they don't think now is a good time to buy. We are married and have a son. I've been on maternity leave and we pay £725 in rent, so saving isn't the easiest thing to do.
We have roughly £3k in savings. I have £900 left on a loan (final payment Jan 2021) £700 on a 0% credit card (to be paid off in November) and about £4k on car finance (pay 165p/m with final balance due in Jan 2022.
Since May I have been furloughed based on my salary of 22k, but once I return to work they have only offered me an 8hr contract on £8.77p/h. I have also started a job working a couple evenings over the summer as I'm unsure when I will return to work (the store needs rebuilding).
My husband's salary is 24k and we both have excellent credit scores with no missed payments.
If we apply now can we use my 22k salary for affordability or only my future pay? I am worried that if we wait until my wages go down that we won't be able to afford any houses in our area. We need the in-laws to realise the urgency of releasing the money to us as I feel like this is our only chance. Any advice would be appreciated. 

MovingForwards

It's very nice of your in-laws to offer to help and you can't pressure them into it.

Having loans, credit card spends and car finance mean you have borrowed money not yet earned. How can you expect your in-laws to help when you've not demonstrated you are saving, which is a condition of their gift.

You could apply for a mortgage off your own back now, but knowing your salary will be reducing is application fraud.

Assess all your outgoings and cut everything unnecessary out, pay your debts off as they hit affordability and save every penny possible.  Which is exactly the same as most other people do when they want to buy a home, look for a property that is in your budget, extend the areas to buy in.

foxy-stoat

You would have to tell the lender your current and future salary as they will ask do you know of planned reductions.  
Your in-laws are probably cautious not to hand over £16,000 cash to you both without you saving enough towards running the house.  Saving £3,000 is good but as he has already used £4,000 out of the £20K to pay debts, and having another £5,600 of unsecured borrowing it doesn't look like overall you have saved anything.

You will find it better to go into a mortgage with zero personal debt and £16,000 + cash deposit  with a reduced annual salary and get your salary knocked down once your in and having to clear down debts at the same time.  You will undoubtedly want to buy things for the new home, decorate change things etc. 

warby68

I suspect the answer, from your inlaws' perspective, lies in how you have got to the married with a son stage but never saved up for a house. I know that sounds judgy, but inlaws (and parents) often are. You might be better paddling your own canoe to get yourselves much closer to home ownership from your own endeavours when the £16k will be a really good helping hand and not the only real money you have. Gifts often come with strings unfortunately.

Sistergold

I am with @warby68 on this. Also to be able to convince them you need to have saved more than the £16000 you are expecting from them as it’s your house you are buying and not the other way round. Without the discipline to save that much and more your in-laws are right to treat you both as still financially not mature enough to handle a bigger debt/Mortgage. Pay your debts, get a better job be financially disciplined and really plan on what you have saved and if they give you the money then it’s a bonus. 

comeandgo

It's their money so they hold all the shots.  You will have to tell your mortgage company about your wages when you apply for a mortgage.  As you still have debt and not much savings you are not showing your in-laws you have much financial sense.  You could just leave it for a few years, pay off the debts and have more saved.  In a few years time you would have a better job with a higher salary.

enthusiasticsaver

It sounds like your income is not secure at the moment if you have been furloughed and promised less hours when you eventually return. You have debt in spite of using £4K of the deposit promised by your in laws. You don't have much in the way of savings.
overall you are not in a good position so I would think less about what your in laws will do to help and more about how you and your husband can fix your finances.

blue_max_3

If you were able to borrow £180k, the repayments would be around £737 at 1.7%. That is already more than you are struggling to pay currently. Plus you'd have other costs, such as legal fees, furniture, maintenance etc. 
On the basis that your financial situation seems to be getting worse, not better, you'd be drowning in the bills all too soon.
If you have had to dip into the offered deposit for a home already, it really shows you would not manage at the current salaries.
Do not be tempted to blame your in-laws. They are showing you tough love and protecting you.

csgohan4

put yourselves in your in laws shoes, why would they lend you money if your financially secure and still in debt? It would be money used to pay off your debts/lifestyle

Money and family shouldn't mix, always comes with strings

ACG

I think you just need to be pretty blunt with them. 
It is all well and good them saying they will give you £20k to buy a home, but to tell you when you can do is pretty poor. 

It sounds like your husband needs to just grow a set and ask them if they are going to give him the money for a home you want to buy now or not. If not, then you know where you stand. If my parents did this, I would thank them for their offer and tell them to keep it and I will do it without their help/interference. If they are doing this now, what are they going to be like when you do find a house (they dont like it, so they wont give you the money?) or when you do get the house (constantly reminding you they helped get it?).  Not for me that, I would rather do it without their help.