Excited to buy, but cannot get a mortgage agreement in principle, looking for advice...

Natrc

katkatmachine said:

Hey just want to cheer you up and say that you guys can do it! It’s just a little set back for now but in no time you’ll over come it. Also, at such a young age of 24 you are already thinking of getting a house. I wish I thought of that when I was your age. Hehehe. Good luck. 

Thank you - the cheering up is greatly appreciated. I have gone from super excited booking in viewings over the past few days, finally feeling like my goals are being reached to very deflated after the meeting with the mortgage broker. 
I am thankful that the only person I told about this was my mum, she has been very supportive and reassured me that its normal to have lots of setbacks in such a big process. I am just not going to tell the rest of my family that we have had this setback, as some are already bugging us constantly about the fact that we "arent getting any younger" and properties "arent getting any cheaper" (im 24, not 44 ). 
One good thing that has come out of this though is this forum, everyone is so supportive, im definetly going to be sticking around!

AnotherJoe

Deleted_User said:

Accept whatever limit they give you. £3,600 isn't much, but it's certainly a lot better than nothing.

Noooooo !

Worse case your credit card limit *can* be marked against you, eg they *might* act as if you might rush out and spend £3600 and knock that off your affordabilty. They might not but why take the chance if you dont need it and you are going to be maxxed out on a mortgage.

So, better to go with moneysavinghero's suggestion of £1k. Not large enough to make difference regards a loan, large enough they are not marked as living close to their credit limit every month.

Crashy_Time

https://www.estateagenttoday.co.uk/breaking-news/2021/5/rejected--vast-numbers-of-first-time-buyers-turned-down-for-mortgages

Lenders are super wary of impending jobs losses and possible mortgage rate hikes due to stimulus/Brexit/Scottish Independence etc. causing credit market volatility.

ele_91

I think your answer to family is simple; you need to wait for your husband to be in his job a bit longer before you can apply for a mortgage. I’m not sure why anyone would have an issue with this and if they do, it’s really none of their business! Perfectly common for people to wait for probation periods to end etc before applying for the mortgage. You are only 24, there is SO much time. 

Natrc

Deleted_User said:

I've not read all 3 pages but is the main issue your lack of previous credit?  And your husbands 3 month in current role? 
If so then there is a lender who returned to even 5% lending today who:
1. Don't credit score applications.  As long as you haven't got bad history then they don't care if you have no credit history. 
2. Don't have a minimum term in current employment (although they will want probation to be passed)

What lenders did this broker approach before saying you couldn't get a mortgage?  How many lenders did they have access to? 

Hi, yes that is the issue. My broker did approach the lender I think you are talking about. The issue the lender had was that my husband's 3 months in his current job was via an agency before being taken permanent, my husband is not in an official probationary period due to this, but the lender views it as that, and so has said that we need 3 months permanently employed, which would equate to this July. My broker was certain that this lender was our best option currently, but we just need to delay a couple of months. 

After thinking about things, we have decided to wait until early next year to start looking. I am going through a couple of very busy rotations at work, and will have a much less stressful role come December, with more free time. We will also have more savings by then, and will be in a better standing if I get a bit of credit between now and then. In the short term, this set back now will allow us time to get everything better sorted. Plus, I'm working 50-60 hours at work currently, and this plus my portfolio and looking for houses is just a bit much. 

[Deleted User]

Cambridge Building Society? Dont see why it wouldn't fit with them.  Sounds right up their street.  Ive put plenty case with them where people have had 1 payslip and been off work for months before that 

Natrc

ele_91 said:

I think your answer to family is simple; you need to wait for your husband to be in his job a bit longer before you can apply for a mortgage. I’m not sure why anyone would have an issue with this and if they do, it’s really none of their business! Perfectly common for people to wait for probation periods to end etc before applying for the mortgage. You are only 24, there is SO much time. 

We have decided just to say we need a bit longer to save, my husband has already recieved a lot of hate from family for not getting a permanent job sooner (as if in this current job market you can literally just walk into a job) so we could apply. Sadly we have the kind of family on one side that are not very supportive, the little they know the better. 

We have decided to postpone by at least 6 months, wait until I reach a quieter period at work (currently about to enter a very busy 6 months where I will have a lot to do and be working a lot of hours), and we have a bit more money and are more likely to be accepted. Win win! 

Natrc

Crashy_Time said:

https://www.estateagenttoday.co.uk/breaking-news/2021/5/rejected--vast-numbers-of-first-time-buyers-turned-down-for-mortgages

Lenders are super wary of impending jobs losses and possible mortgage rate hikes due to stimulus/Brexit/Scottish Independence etc. causing credit market volatility.

Thanks for this, very interesting and insightful read, makes sense of our current situation, and in a way showed me we aren't alone. 

Natrc

Deleted_User said:

Cambridge Building Society? Dont see why it wouldn't fit with them.  Sounds right up their street.  Ive put plenty case with them where people have had 1 payslip and been off work for months before that 

He is going to contact them for us tomorrow for the same reasons you have suggested. He didn't quite have enough time today after approaching his main staple lenders. We will see, he is calling me back tomorrow. Today he tried Yorkshire BS, HSBC and another which specialises in no credit history (he didn't say the name), said he is trying Cambridge BS and a couple of others tomorrow. 

[Deleted User]

 another which specialises in no credit history (he didn't say the name)

Probably Aldermore. They dont credit score either and are more mainstream (although rates are higher than most others)

Best of luck