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  • FIRST POST
    • nudda
    • By nudda 26th Apr 17, 6:09 AM
    • 117Posts
    • 27Thanks
    nudda
    Mortgage without job
    • #1
    • 26th Apr 17, 6:09 AM
    Mortgage without job 26th Apr 17 at 6:09 AM
    Hi,

    I was thinking of speaking to an IFA and my bank to see if they'd give me a mortgage as I am in need of buying a house (first one). The only thing that concerns me is that I currently have no job. Personal choice, I wanted to take some time out and relax and I could financially afford to do so. I currently have excellent credit rating, a large deposit and very minor outgoings (mobile phone and Sky tv). I'm in my 30's and am in a field which is booming so getting another job isnt going to be difficult.

    Are there any lenders out there who would lend to me or am I wasting my time?

    Thanks
Page 1
    • Caz3121
    • By Caz3121 26th Apr 17, 6:33 AM
    • 12,402 Posts
    • 8,078 Thanks
    Caz3121
    • #2
    • 26th Apr 17, 6:33 AM
    • #2
    • 26th Apr 17, 6:33 AM
    Hi,

    I was thinking of speaking to an IFA and my bank to see if they'd give me a mortgage as I am in need of buying a house (first one). The only thing that concerns me is that I currently have no job. Personal choice, I wanted to take some time out and relax and I could financially afford to do so. I currently have excellent credit rating, a large deposit and very minor outgoings (mobile phone and Sky tv). I'm in my 30's and am in a field which is booming so getting another job isnt going to be difficult.

    Are there any lenders out there who would lend to me or am I wasting my time?
    Originally posted by nudda
    Work on the basis that a mortgage could be 4.5x your income...
    If income = 0 then 4.5x that would be...0

    From your previous posts you have been looking to buy for a number of years. Well done on getting a large deposit together....although I will assume it will be reducing with your outgoings each month
    Maybe wait till you have been in a new job for 6 months+ and then apply for mortgage
    • AnotherJoe
    • By AnotherJoe 26th Apr 17, 6:42 AM
    • 16,020 Posts
    • 19,218 Thanks
    AnotherJoe
    • #3
    • 26th Apr 17, 6:42 AM
    • #3
    • 26th Apr 17, 6:42 AM
    Work on the basis that a mortgage could be 4.5x your income...
    If income = 0 then 4.5x that would be...0

    From your previous posts you have been looking to buy for a number of years. Well done on getting a large deposit together....although I will assume it will be reducing with your outgoings each month
    Maybe wait till you have been in a new job for 6 months+ and then apply for mortgage
    Originally posted by Caz3121
    If OP used a broker they might be able to get 5x income
    • nudda
    • By nudda 26th Apr 17, 6:54 AM
    • 117 Posts
    • 27 Thanks
    nudda
    • #4
    • 26th Apr 17, 6:54 AM
    • #4
    • 26th Apr 17, 6:54 AM
    Well done on getting a large deposit together....although I will assume it will be reducing with your outgoings each month
    Originally posted by Caz3121
    Not really. I've been out of work for only a few months since when I started first working, and have very low outgoings.
    • AnotherJoe
    • By AnotherJoe 26th Apr 17, 7:10 AM
    • 16,020 Posts
    • 19,218 Thanks
    AnotherJoe
    • #5
    • 26th Apr 17, 7:10 AM
    • #5
    • 26th Apr 17, 7:10 AM
    You said you only have minor outgoings, sky and mobile .

    Don't you buy food ? Clothes? Cleaning products?
    Do you go to the dentist ? Opticians ?
    What about council tax ?
    Car or transport costs ?
    Heating ? Lighting ?
    Insurance ?
    Do you ever go on holiday ?
    Do you not have aTV licence ?
    No broadband? (Or maybe it's on Sky?)
    Do you ever go out? Cinema? Restaurants? Pub? Club?
    Do you buy presents ?
    Got any gadgets ? Computer ? New mobile?
    If you had a house you'd have maintenance. And more insurance. And more costs.

    Add all those to the costs of repaying a mortgage ?

    How would you do that without income from a job ?

    Are you burning down your deposit or other savings to finance that ? If so that's not sustainable unless you have so much money you don't need a mortgage.

    So, given all those costs, plus the cost of repaying a mortgage, why do you think anyone would lend you tens oir maybe hundreds of thousands of pounds with no prospect of repaying it other than you saying "trust me jobs are easy to get".

    What you could usefully do is add up those costs , plus mortgage repayments, in order to approximate how much you'd need to earn in your job so you know what's realistic. . And if there are jobs where you'd like to buy that pay enough (unless you can work from home ?)
    • silvercar
    • By silvercar 26th Apr 17, 7:11 AM
    • 39,483 Posts
    • 163,573 Thanks
    silvercar
    • #6
    • 26th Apr 17, 7:11 AM
    • #6
    • 26th Apr 17, 7:11 AM
    The serious answer is that lenders want to see some evidence of your ability to pay the mortgage. They take your current status an indication of your ability to pay the mortgage for the next 25 years.

    So if you currently aren't working, they have no evidence that you will be able to afford the mortgage for the net 25 years.

    If you were working for 6 mths plus, got the mortgage then gave up your job, they would be fine. But the way round you would like would make lenders too nervous.
    • nudda
    • By nudda 26th Apr 17, 7:20 AM
    • 117 Posts
    • 27 Thanks
    nudda
    • #7
    • 26th Apr 17, 7:20 AM
    • #7
    • 26th Apr 17, 7:20 AM
    The serious answer is that lenders want to see some evidence of your ability to pay the mortgage. They take your current status an indication of your ability to pay the mortgage for the next 25 years.

    So if you currently aren't working, they have no evidence that you will be able to afford the mortgage for the net 25 years.

    If you were working for 6 mths plus, got the mortgage then gave up your job, they would be fine. But the way round you would like would make lenders too nervous.
    Originally posted by silvercar
    Thanks for this serious answer which is pretty much the doubt in my mind I wanted to confirm (rather than get mocked). In the last 11 years, I have not worked for about 6 months but I can understand the lenders viewpoint by being nervous to lend to someone with no income.

    How about for the self-employed who aren't always working but get paid well for small projects they do ?
    • Oakdene
    • By Oakdene 26th Apr 17, 7:24 AM
    • 2,443 Posts
    • 8,852 Thanks
    Oakdene
    • #8
    • 26th Apr 17, 7:24 AM
    • #8
    • 26th Apr 17, 7:24 AM
    Thanks for this serious answer which is pretty much the doubt in my mind I wanted to confirm (rather than get mocked). In the last 11 years, I have not worked for about 6 months but I can understand the lenders viewpoint by being nervous to lend to someone with no income.

    How about for the self-employed who aren't always working but get paid well for small projects they do ?
    Originally posted by nudda
    Lenders will tradionally want to see 2-3 years worth of self assessment returns (verified by HMRC) before lending.
    • AnotherJoe
    • By AnotherJoe 26th Apr 17, 8:26 AM
    • 16,020 Posts
    • 19,218 Thanks
    AnotherJoe
    • #9
    • 26th Apr 17, 8:26 AM
    • #9
    • 26th Apr 17, 8:26 AM
    Thanks for this serious answer which is pretty much the doubt in my mind I wanted to confirm (rather than get mocked). In the last 11 years, I have not worked for about 6 months but I can understand the lenders viewpoint by being nervous to lend to someone with no income.

    How about for the self-employed who aren't always working but get paid well for small projects they do ?
    Originally posted by nudda
    Such a self employed person will have a record of being paid over a period of time they can use, and as said, if self employed, then lenders typically want to see 2 or 3 YEARS of records (rather than 3 MONTHS of payslips from an employer).

    And note, if you get a new job which has a probationary period, eg you can be fired on a whim in say the first 6 months, then its very unlikely you'd get a mortgage whilst in that period either.

    If you move between short term jobs, you would need a specialist broker and your options would be more limited.

    So in your case, is that your job history of being self employed, or did you just pack in a "conventional" job since you were confident you can easily get another?

    The two models are very different in terns of what you'd need to show as a record/proof of income, the key point which is where my flippancy came from as I couldn't envisage someone didn't realise this, and genuinely thought a joke was coming, is no income = no mortgage.

    p.s. its not just "nervousness" about lending to someone with no income regards will they get paid back, government regulations actually specify the types of checks they need to make regarding income and also the maximum multiples they can to lend, hence the aprox 4.5 x income cap on lending.
    Last edited by AnotherJoe; 26-04-2017 at 8:32 AM.
    • nudda
    • By nudda 26th Apr 17, 8:48 AM
    • 117 Posts
    • 27 Thanks
    nudda
    Lenders will tradionally want to see 2-3 years worth of self assessment returns (verified by HMRC) before lending.
    Originally posted by Oakdene
    Got it- thanks
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