First time buyer mortgage - are we eligible?

katel98

Myself and my partner are looking to buy our first home. We have almost saved our deposit and are looking to buy as soon as possible. The house price is 115,000 and we have a 10% deposit. 

My partner has been working at his job full time since February and earns £18K a year. I was due to start my new job earning 16k a year in March however due to the Coronavirus my start date was pushed back to the beginning of July. Since July I have been working part time, earning 60% of my wage, August 80% and in September 100%.  We have both been in full time employment for the last few years, have great credit ratings, no outstanding bills/debts etc and our budget leaves us with money left over at the end of the month. 

Will we be eligible for a mortgage in a few months despite my work being reduced to part time for a couple of months? 

yksi

You'd be best seeing a broker, the answer might be yes, but as your income hasn't been stable of late, they are likely to suggest you wait a few more months to increase your choices, rate options and chances. Lenders are wary right now because so many people who've been on the CVRS have ended up out of work.

Thrugelmir

90% LTV mortgages are thin on the ground. Keep saving and working towards earning a full 100% salary. 

leodis23

Are you using a LISA? If not, you and your partner should both open one now and put £4,000 in each. That £8,000 then becomes £10,000. If you can wait until April, you can do the same again for an extra £1,000 each and reduce your LTV - if you can get to 15% deposit you'll be in a stronger position to get a mortgage.

BristolPole

leodis23 said:

Are you using a LISA? If not, you and your partner should both open one now and put £4,000 in each. That £8,000 then becomes £10,000. If you can wait until April, you can do the same again for an extra £1,000 each and reduce your LTV - if you can get to 15% deposit you'll be in a stronger position to get a mortgage.

Just bear in mind a LISA needs to be open for at least 12 months before the bonus can be used for a house deposit, so the OP would then need to wait until August 2021 to be able to purchase if they opened one now.

katel98

We both have help to buy ISA’s with some of the deposit money in.