Professional Couple (to be) FTB Advice needed

tomatopuree

Hi all,

Would like a bit of advice really, in September I start as a trainee solicitor (on the law society minimum pay, currently £15800, but likely to be £16400 when I start) and my wife starts as an newly qualified teacher (likely to be £20500 starting salary). We would really like to buy our first house either just before or just after we start our jobs in September. The size of house we require would cost between £110000 and £130000. I have a substantial amount of money to repay from financing my legal studies (£25k loan) and £3000 of credit card debt. My wife has no such debts. We have about £5000 for a deposit but could pull together up to £15k if need be (in belated wedding gifts).

Using my wife as the 1st applicant all the calculators I've used would let us borrow between £100000 and £130000, but that is obviously based on us actually having started our jobs, but taking into account my professional studies loan We could provide proof of our earnings from September in the form of our contracts and/or confirmation from our employers. Ideally we'd like to borrow something in the region of £112000 and £115000.

Is there any chance of getting a mortgage before we've started our jobs or are we fooling ourselves? We really don't want to continue renting and throwing money away each month. Scottish Widows or Teachers Building Society seem like the best bets if we could actually get a mortgage before Sept.

Any advice would be greatly appreciated!

nelly_2

it could be argued paying banks massive interest is throwing money away

You just work out your monthy payment multiply it by 12 (months) then 25 (years) and then you will see what the real percentage rate is

it isnt 6 point this or 5 point that................................. its 200%+

The best thing to do is build a big deposit

Addy1

Hi, I am in a similar situation, I am starting work as a newly qualified doctor in August, and Halifax have agreed to give me their normal rate (I have 10% deposit) However, my partner is in employment already.

We will be earning slightly more than you (50k combined) but they said if we are looking to borrow around 120k it is not a problem. However we cannot complete till August when I start work, but they will confirm the mortgage 3 months before I start work.

So it is possible especially if you can get 10% deposit, but it is mainly with the larger banks and you are best to go through a broker because your case would need to go through to the underwriters specially.

UK007BullDog

The monthly outgoing on your loan and credit cards will be taken off your income. Which means you will not be able to borrow the amount you are lookig for.

I suggest that you pay off the credit card first of all and start saving for the next year or two to get a decent deposit together.

Then once both of you start working and in employment for at least 3 months apply for a mortgage if you dont want to wait any longer.

herbiesjp

tomatopuree wrote: »

Hi all,

Would like a bit of advice really, in September I start as a trainee solicitor (on the law society minimum pay, currently £15800, but likely to be £16400 when I start) and my wife starts as an newly qualified teacher (likely to be £20500 starting salary). We would really like to buy our first house either just before or just after we start our jobs in September. The size of house we require would cost between £110000 and £130000. I have a substantial amount of money to repay from financing my legal studies (£25k loan) and £3000 of credit card debt. My wife has no such debts. We have about £5000 for a deposit but could pull together up to £15k if need be (in belated wedding gifts).

Using my wife as the 1st applicant all the calculators I've used would let us borrow between £100000 and £130000, but that is obviously based on us actually having started our jobs, but taking into account my professional studies loan We could provide proof of our earnings from September in the form of our contracts and/or confirmation from our employers. Ideally we'd like to borrow something in the region of £112000 and £115000.

Is there any chance of getting a mortgage before we've started our jobs or are we fooling ourselves? We really don't want to continue renting and throwing money away each month. Scottish Widows or Teachers Building Society seem like the best bets if we could actually get a mortgage before Sept.

Any advice would be greatly appreciated!

How much will you be paying back on the loan and the credit cards on a monthly basis?

There are a handful of lenders that can agree the mortgage, before you have actually started your employment. They will however want to see some form of written signed confirmation of that employment i.e. contract

That way potentially you can set the mortgage up in advance and only complete once you have both got your steady flows of income

Careful consideration will be needed on the basis on the commitments you have already, and so it would be worthwhile getting in contact with a whole of market broker, in order to 1) find you a deal you like and 2) show you exactly what impact that would have on your finances

tomatopuree

thanks for the advice guys. The professional loan repayments will be roughly £400/month and paying back about £90/month on CC at the moment. I'd like the CC balance to be down to £2000 by the time I start my job.

Using my basic knowledge of income tax, NI, pensions, student loan repayments etc as a couple we'd be bringing home something in the region of £2270/month.

At the various mortgage repayment examples I've looked at, the repayments for the first few years would be about £575-£650/month (obviously going up after the first couple of years of discounted interest rate, this would coincide with our salaries increasing). We'd have to pay about £600-650 a month if we were renting.

Anyway I suppose our next step would be to speak to a broker and assess where we can go from here.

Oh and for the record I'd much rather throw money at a bank in terms of interest than line the pockets of any more landlords! We've been living together for 5 years now and that means we've given nearly £30000 to various landlords over that time... quite depressing!

Anyway thanks again for the advice! :beer:

herbiesjp

Well based on those commitments figures, a good credit score, and 4 times joint income multiple, you should be fine with the mortgage amounts you are looking at

You could potentially get more, but I would not suggest over stretching yourselves.