Mortgage on a "future" salary

MDE

I currently earn £23,500. In september I will be going to £29,000 due to a promotion and change of employer.

I want to buy a house in the area of my new job. I have the formal letter offering me the post and stating the salary, but is there any point in me going to talk to mortgage brokers to look at deals based on my "future" salary. Would the lenders even be interested in the rise in salary to come or are they just interested in the "here and now"?

I am a teacher, in a permanant, full time post. I am guaranteed increases every year due to moving up the salary scale anyway, will they consider this or not?

Thanks,

MDE1982

Ian_Griffiths_Halifax

I have placed mortgages on several occasions in exactly the same circumstances as yours.

The Halifax were one who took a case when a couple, both teachers, were moving back here from Columbia, so no proof of residency. They needed to buy a house around July, to move in and get settled before their contracts started in September. They both had letters confirming their new contracts and their incomes. They had a 10% deposit and could show that they would have sufficient additional funds to be able to pay their mortgage until their new jobs started.

Another was with Standard Life Bank, who took a mortgage for a client who was ABOUT to take her exams in the final year of Uni to be a Doctor. IF she passed her exam, she had a job waiting for her at a Hospital, but they couldn't even confirm what income she would be on!

They accepted the mortgage despite again needing to move in around June/July and not even knowing if she would have passed her exams! This client again had a large deposit and savings to pay the mortgage until her job started IF she got it!

It's worth trying both these lenders but use a broker so that they can build a case for you.

Good luck.

topher_2

I'm a teacher and have been in the same position as you. HSBC were happy to accept my letter. I also took a copy of the teacher's pay scales - it proved useful to show the mortgage manager how my salary would increase year on year (well for 3 more years at that time!)

herbiesjp

What kind of house prices were you looking at?

What deposit do you have?

Do you have any other loans, credit cards, HP agreements etc in the background? Do you have a good credit history?

This information will be a good starting point to see if what you are looking to do will be achieveable

MDE

herbiesjp wrote: »

What kind of house prices were you looking at?

I think about £110,000- £115,000 is realistic.

herbiesjp wrote: »

What deposit do you have?

I should be able to do £5000

herbiesjp wrote: »

Do you have any other loans, credit cards, HP agreements etc in the background? Do you have a good credit history?

Loan with Natiowide- £150 p/m
About £12,000 (so about £300 p/m to slowly eat into the balance) on various credit cards, mainly on either life of balance deals or low interest deals for the time being.

herbiesjp wrote: »

This information will be a good starting point to see if what you are looking to do will be achieveable

Thank you for your help.

MDE

Bump- hoping someone can give me advice that I need?

beingjdc

A less than 5% deposit, 3.6x salary, and more debt than savings? I don't fancy your chances of getting a good rate in the present climate I'm afraid.

Why the rush to buy?

herbiesjp

The loan and £12k on credit cards will be hurting your chances of the required mortgage amount.

You will need at least a 5% deposit

You may be able to look at guarantor mortgages, but this will need careful consideration , along with the actual monthly affordability of the chosen mortgage. And that means not only the affordability now, but in the future as well

Your best bet would be to speak to a whole of market adviser to see what they could find for you (if anything) and what that would mean to you each month in terms of monthly mortgage payments

MDE

beingjdc wrote: »

Why the rush to buy?

I have a real thing against renting- it always seems like putting money down the drain.

MDE

Any advisor able to tell me if this mortgage is still available from Bristol and West:

http://www.bristol-west.co.uk/more/professional/questionsAnswered/MoreProfessionalQuestionsAnswered.aspx

Their website says 100% LTV but not sure if this just hasn't been updated.

beingjdc

MDE wrote: »

I have a real thing against renting- it always seems like putting money down the drain.

Once you have a mortgage, you'll realise that mortgage interest is exactly the same - money you'll never see again. In both cases, you get a place to live instead.

The only money that's not down the drain is either the extra above interest that you pay on your mortgage, or the money you put in your savings after you've paid your rent.