If you need urgent support, call 999 or go to your nearest A&E. To contact our Crisis Messenger (open 24/7) text THEMIX to 85258.
mortgage lenders
Former Member
Posts: 1,876,323 The Mix Honorary Guru
So my boyfriend (and me) are looking in to buying a house, it's only been a recent thing, as in this weekend recent, anyway the question really is does anyone know of any good lenders that will give him a mortgage as his earning circumstances are slightly different, in the fact that he is full time and permantl employment by an emolyer (house building company) but the amount he earns is variable every week depending on what he does.
He's a carpenter on a building site and every job has a different price and you book in what you do week by week, so he doesn't have a fixed annual salary. At the minute he's earning between £750 - £850 a week before tax, but because last year he was on a set crappy wage because he was still an apprentice his grosse pay was only £13,500 odd where as this tax year he has already earnt more than that, because he's now qualified.
So if thats what they would base the loan on he wouldn't get very far, is that how it works? Or do they take into acount what you can afford to pay per month, but in his case how can you prove what you earn when there isn't a fixed amount, would weekly wage slips work? Because it's not like he's self employed or would the situation be similar, or would he have to wait to the end of this tax year to get a new p60 showing his earnings which grosse should be more like £25-30,000? Are normal high street lenders good for these sort of circumstances?
And just incase it's relevent we would want to borrow 115,000-120 tops, but probably more like 105.
any light on the subject would be great!
He's a carpenter on a building site and every job has a different price and you book in what you do week by week, so he doesn't have a fixed annual salary. At the minute he's earning between £750 - £850 a week before tax, but because last year he was on a set crappy wage because he was still an apprentice his grosse pay was only £13,500 odd where as this tax year he has already earnt more than that, because he's now qualified.
So if thats what they would base the loan on he wouldn't get very far, is that how it works? Or do they take into acount what you can afford to pay per month, but in his case how can you prove what you earn when there isn't a fixed amount, would weekly wage slips work? Because it's not like he's self employed or would the situation be similar, or would he have to wait to the end of this tax year to get a new p60 showing his earnings which grosse should be more like £25-30,000? Are normal high street lenders good for these sort of circumstances?
And just incase it's relevent we would want to borrow 115,000-120 tops, but probably more like 105.
any light on the subject would be great!
0
Comments
How big and fat are we talking here!
I was having a browse around online and there were option to borrow 95% 97% or even a 100% is this not realistically the case then? (we wouldn't be going for the 100% by the way)
Sometimes lenders restrict the amount they will lend to you (income multiplier will be lower if the loan to value is high, usually above 90/95%). Although some lenders will calculate how much you can borrow based on affordability, mainly looking at you current commitments compared to your salaries. Other lenders look at both.
IMO your best to contact an IFA ... the majority will offer a free service and can usually give you an agreement in principle within a few hours. Then you'll know what you've potentially got to play with.
As for the situation you're in, the best thing to do would be to talk to a mortgage advisor. There's plenty of free ones you can find online who will search through different mortgages for you and find you the best deals. They'll also know much more about whats available on the market and you aren't obliged to take their advice.
i really agree with this. :yes: We started looking in January and got an offer in principle from Northern Rock. When we put in an offer on a house the estate agency put us in touch with an independent mortgage adviser who worked out of their branch. He was FANTASTIC and made everything 100 times easier for us. We ended up with a far better deal and an amazing fixed rate!
Kermit saying about not lending at the moment is true because of the current financial climate.
You won't get extremely high multiples etc without a bigger deposit.
Generally people have been saying that for the last 18-months tho. I can't see any huge change in property prices either way anytime soon. However, I would avoid fixing atm if possible.
Most lenders have withdrawn their higher-risk products (.e. 90%+ LTV), and those that remain have very high interest rates now.
There are literally hundreds of lenders that do self cert products.