Re-mortgaging on a low wage and short employment history

preston99

Can I ask the experts out there what will probably happen when I try to re-mortgage (or transfer) next year.

Due to some hard saving and a well timed redundancy package I can finally afford to take a year out from work and study for a PGCE. The PGCE will start in September 2008 and runs for 1 year. My 5 year fixed mortgage term will end 31st October 2009. I will have 15 years of the original 25 year term remaining. For the purposes of this thread I’ll assume I get a job in September 2009.

So here are the numbers in October 2009…
My salary = 20K
Wife’s salary = 13.5K
Outstanding = 80K
LTV = 25% (assuming house prices stay the same)
I will have no debt and approx £15K in savings left (if I stick to the budget)

Thanks in advance.

jonesMUFCforever

As you will have no salary then your wages are out of the equation so that leaves your wife at £13.5k at say 3 or 3.5 times her salary - IMO no chance.

Assuming you get a job will not get you a mortgage.

LillyJ

jonesMUFCforever wrote: »

As you will have no salary then your wages are out of the equation so that leaves your wife at £13.5k at say 3 or 3.5 times her salary - IMO no chance.

Assuming you get a job will not get you a mortgage.

I think you have misread the post, he will have a job by then, at 20k pa. at combined income of 33.5k with a 80k loan and, most importantly 25% equity, I am no expert but seems pretty reasonable to me.
I think what he is asking is whether the fact he will only have been working for 1 month will be a problem.

dmg24

I have recently remortgaged with an 'unconventional' income, which without going self cert would be next to nothing, but was still offered a competitive deal by my current provider.

No one can say what state the mortgages market will be in by October 2009, but at present it would not appear to be a problem.

beecher

I'd think you'd be okay as long as you have a permanent contract by then rather than being on supply. There's always the option of staying with your current bank/building society which might be more straightforward.

jonesMUFCforever

LillyJ wrote: »

I think you have misread the post, he will have a job by then, at 20k pa. at combined income of 33.5k with a 80k loan and, most importantly 25% equity, I am no expert but seems pretty reasonable to me.
I think what he is asking is whether the fact he will only have been working for 1 month will be a problem.

Quoted from his post

For the purposes of this thread I’ll assume I get a job in September 2009.

LillyJ

My 5 year fixed mortgage term will end 31st October 2009

quoted from his post.

Please read the whole thing again.

jonesMUFCforever

I still don't get you.
He has been made redundant.
His fixed rate deal will finish in 2009.
He is assuming that he will find a job paying £20k - but surely this is not guaranteed.

From the OP's posting the only guarantee at the moment is that the family's income will be £13.5k - his wife's salary.

LillyJ

jonesMUFCforever wrote: »

I still don't get you.
He has been made redundant.
His fixed rate deal will finish in 2009.
He is assuming that he will find a job paying £20k - but surely this is not guaranteed.

From the OP's posting the only guarantee at the moment is that the family's income will be £13.5k - his wife's salary.

He is doing a PGCE. He will finish next summer and get a job for the academic year 2009-10, starting in september. As a newly qualified teacher it is highly unlikely he will not get a job and 20k is the starting salary for teachers.

I can finally afford to take a year out from work and study for a PGCE. The PGCE will start in September 2008 and runs for 1 year

preston99

Thanks guys.

Nothing is guarenteed but LillyJ is quite right. Newly Qualified Teachers are highly likely to get a job as soon as they qualify.