Mortgage for a FTB - what are the chances?
Discussion
In the following circumstances what's the likelihood of a mortgage being approved;
Single 29 year old professional earning approx £45k per annum
Recently started a new role, initially on a 12 month FTC but good chance of it being made permanent
House is a small 2-bed semi on at £210k (and will definitely sell at that price)
She has a £50k cash deposit.
Her only other outgoings are a ridiculous amount of money on shoes, handbags, and something called "a social life". No loans, or credit card debts.
Are any of the mainstream lenders likely to approve her?
Any of the brokers likely to find her something suitable?
We've been looking for a house for ages and this would be at the top end of her budget. It's also something of a doer-upper and needs a fair amount of TLC However it's slap bang in the middle of the perfect area for her and she has a retired grandad who enjoys painting and decorating. We've let a few slip through our fingers because of umm'ing and ahh'ing over the price, the location and other stuff so I'm keen that we get this one.
All comments welcome.
Single 29 year old professional earning approx £45k per annum
Recently started a new role, initially on a 12 month FTC but good chance of it being made permanent
House is a small 2-bed semi on at £210k (and will definitely sell at that price)
She has a £50k cash deposit.
Her only other outgoings are a ridiculous amount of money on shoes, handbags, and something called "a social life". No loans, or credit card debts.
Are any of the mainstream lenders likely to approve her?
Any of the brokers likely to find her something suitable?
We've been looking for a house for ages and this would be at the top end of her budget. It's also something of a doer-upper and needs a fair amount of TLC However it's slap bang in the middle of the perfect area for her and she has a retired grandad who enjoys painting and decorating. We've let a few slip through our fingers because of umm'ing and ahh'ing over the price, the location and other stuff so I'm keen that we get this one.
All comments welcome.
Countdown said:
In the following circumstances what's the likelihood of a mortgage being approved;
Single 29 year old professional earning approx £45k per annum
Recently started a new role, initially on a 12 month FTC but good chance of it being made permanent
House is a small 2-bed semi on at £210k (and will definitely sell at that price)
She has a £50k cash deposit.
Her only other outgoings are a ridiculous amount of money on shoes, handbags, and something called "a social life". No loans, or credit card debts.
Are any of the mainstream lenders likely to approve her?
Any of the brokers likely to find her something suitable?
We've been looking for a house for ages and this would be at the top end of her budget. It's also something of a doer-upper and needs a fair amount of TLC However it's slap bang in the middle of the perfect area for her and she has a retired grandad who enjoys painting and decorating. We've let a few slip through our fingers because of umm'ing and ahh'ing over the price, the location and other stuff so I'm keen that we get this one.
All comments welcome.
Most lenders will decline her due to the lack of FTC history (assuming she was PAYE prior to this FTC starting?) but there are a few who may consider it subject to the details of the application as a whole......Single 29 year old professional earning approx £45k per annum
Recently started a new role, initially on a 12 month FTC but good chance of it being made permanent
House is a small 2-bed semi on at £210k (and will definitely sell at that price)
She has a £50k cash deposit.
Her only other outgoings are a ridiculous amount of money on shoes, handbags, and something called "a social life". No loans, or credit card debts.
Are any of the mainstream lenders likely to approve her?
Any of the brokers likely to find her something suitable?
We've been looking for a house for ages and this would be at the top end of her budget. It's also something of a doer-upper and needs a fair amount of TLC However it's slap bang in the middle of the perfect area for her and she has a retired grandad who enjoys painting and decorating. We've let a few slip through our fingers because of umm'ing and ahh'ing over the price, the location and other stuff so I'm keen that we get this one.
All comments welcome.
Sarnie said:
Most lenders will decline her due to the lack of FTC history (assuming she was PAYE prior to this FTC starting?) but there are a few who may consider it subject to the details of the application as a whole......
Dammit 
Yes she was PAYE before (just to clarify, she's PAYE now.....FTC = 12 month fixed term contract). However she's pretty good with her billable hours so is confident that they'll keep her on.
Do you think a broker would be able to find her something in the current circumstances?
hyphen said:
Countdown, can she bump that 50k up very slightly so she has a 25% deposit?
Sarnie will know the answer- but to a layman, always appears that 25% is a standard percentage for seeing LTV.
Good point and the answer is yes. I'll be able to lend her something and her grandparents will probably give her something as well. I just didn't want to rely on that for the affordability calculations especially as the house will need some TLC. Sarnie will know the answer- but to a layman, always appears that 25% is a standard percentage for seeing LTV.
Countdown said:
Dammit
Yes she was PAYE before (just to clarify, she's PAYE now.....FTC = 12 month fixed term contract). However she's pretty good with her billable hours so is confident that they'll keep her on.
Do you think a broker would be able to find her something in the current circumstances?
I know what FTC is Yes she was PAYE before (just to clarify, she's PAYE now.....FTC = 12 month fixed term contract). However she's pretty good with her billable hours so is confident that they'll keep her on.
Do you think a broker would be able to find her something in the current circumstances?
I'm sure a good broker would be able to help or at least quickly rule it out!
Me and my Partner were in a similar situation.
She is self employed so to rule any issues out with her as she hadn't been trading 3 years we put it through on my wage alone.
Same wage as near as makes no difference and only other outgoings were Gym, Phone etc.
Whilst our property was substantially cheaper (4 Bed Detached in Northumberland) We were approved for more than you're asking price.
As other have said Sarnie is the go to Mortgage Chap on here.
She is self employed so to rule any issues out with her as she hadn't been trading 3 years we put it through on my wage alone.
Same wage as near as makes no difference and only other outgoings were Gym, Phone etc.
Whilst our property was substantially cheaper (4 Bed Detached in Northumberland) We were approved for more than you're asking price.
As other have said Sarnie is the go to Mortgage Chap on here.
Countdown said:
Thanks all
I've used a broker in the past (sorry Sarnie! ) and he's sounding positive. Apparently some lenders will look at her as long as she's got more than 6 months left on her contract and as long as she has a track record of working in this field. So fingers still crossed.
Do you have to act as guarantor? I've used a broker in the past (sorry Sarnie!
) and he's sounding positive. Apparently some lenders will look at her as long as she's got more than 6 months left on her contract and as long as she has a track record of working in this field. So fingers still crossed.
Don’t suppose anyone knows if or when mortgage company’s will bring deposit percentages back down, my daughter and her partner were looking at getting on the property ladder but when the virus hit the the deposit went up. Can’t blame the mortgage company’s really, jobs will be cut, she’s a p.e teacher so she’s ok.
Cass63 said:
Don’t suppose anyone knows if or when mortgage company’s will bring deposit percentages back down, my daughter and her partner were looking at getting on the property ladder but when the virus hit the the deposit went up. Can’t blame the mortgage company’s really, jobs will be cut, she’s a p.e teacher so she’s ok.
Only when they see stability in the market/house prices......
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