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Hi
Asking a quick question. looking to relocate soon. If my GF gets offered a job and we want to move before she starts, will a mortgage company take that into account in a mortgage offer or does she need to have worked there 3/6 months or similar?
This would be in addition to my salary
cheers
nobody?? someone must know?
Do you already have a mortgage?
If not, then I'd say it'll be pretty damn hard unless you have the deposit and (credit) history to back it up etc. A job offer IMO is worth jack shit, even more so in today's climate.
If you do, then are you up for renewal?
We already have a mortgage under just my name, its just that where we are moving to we probably need both incomes taken into account to afford what we want
And we will be outside any 'fixed' period and free to move providers or threaten to!
Seems like you have to sign over your first-born to get a mortgage at the moment. GIven that anything less than the 'perfect' application will get the nod you may struggle. Though I notice from a recent news article that they are starting to approve mortgage applications that don't meet their really strict criteria (ie: less than 30% deposit etc). But on ridiculous rates of interest. They really are scum aren't they. Its just profiteering
There's only one way to find out though. Good luck
As long as she isnt temporary, or on a probationary period, Halifax used to let you as long as you completed within one month or her start date, no earlier. I remember doing it for some nurses but not sure about their criteria now
Though I notice from a recent news article that they are starting to approve mortgage applications that don't meet their really strict criteria (ie: less than 30% deposit etc). But on ridiculous rates of interest. They really are scum aren't they. Its just profiteering
But Binners, surely having been stung by offering every man and his dog a morgage they have to be more strict don't they? Isn't that part of the reason we are in the mess we are? And it has always been standard to apply higher interest rates to higher risk hasn't it?
Pre-banking-collapse I wrote a letter as the prospective employer for someone who was coming to work with us to back up the application. She got the mortgage. Even back then they were a bit jumpy about it and IIRC she had to send her contract too. We have no probationary period which would have offered a little comfort. Bizarrely since the financial crisis a few people have changed mortgage but despite passing on the company details we have never been asked to corroborate salary or that we weren't about to sack someone... ...which we used to get asked in the boom days.
lunge - there's probably a happy medium somewhere. Given the present base rate, the interest rates they're asking for are frankly obscene. And I can't help getting the same feeling that they'll achieve much the same. Ie: the whole sub-prime debacle. Offering people mortgages which they know they can't pay back. Whether thats because of the original property price, or because they're being charged obscene rates of interest, I imagine the end result will be the same
Different process. Same outcome. They've learnt nothing
Binners,
Assuming I had a couple of hundred grand sitting spare under my bed, and you wanted to buy a house with it:
- what interest rate would you offer to borrow it at? Do you want me to fix/cap that? or is it ok if I put up the rate when BOE inevitable raise theirs?
- what fraction of the current house value do you think it would be sensible for me to accept exposure to?
- what fraction of your take home salary do you think is sensible to spend on mortgage each month?
Personally I've no problem with it being quite hard to get a mortgage, and in reality (compared to say inflation) I don't think rates are that high.
Do you know which mortgage lender you want to use? If you do then I would suggest giving them a call... but thats where the fun will start. You dont want to speak to the call centre, or the branch you actually need to speak to the underwritting department who will make the final decision whether to grant you a mortgage. It will be more difficult that you can imagine to get through to the right people.
Then theres the problem that they might just say that you have to put the application in for them to make the decision. If the decision comes back no from the lender then then that will effect you credit rating and ability to get a mortgage else where.
I didnt think lenders would offer mortgages unless you had been employed > 6 months but I could be wrong...
Base rates are low but that is totally irrelevant. If you take out a mortgage from Lloyds say that loan goes into a large loan book which they have to hedge in the fixed income markets. They have to borrow 2,5, 10yrs and so on to manage their risk. Right now that costs Lloyds over 5% for 5yrs.
Mcboo - indeed if you think you can do a better job of lending than the banks, or if your think that real people will offer you a better rate of interest than a multinational then you can go to a [url= http://uk.zopa.com/member/polwart ]peer to peer lender like Zopa[/url], but I don't think any of them are doing mortgages?
Well ive just spoken to woolwich/ barclays who im with atm and they arnt interested, they want 6months in the job and 18months of employment history as standard anything else is a special request.
Looks like we might need to rent for a bit, any disadvantage to coming off the property ladder and jumping back on later on?
"Looks like we might need to rent for a bit, any disadvantage to coming off the property ladder and jumping back on later on?"
I wouldnt have thought so at the minute, its not as though house prices are rising, and therefore you would be loosing out on building equity.
Are you actually looking to borrow more than you already do? ie couldnt you keep the mortgage in your sole name, which would basically be a remortgage. You can then add the GF later down the line...
And, is it not wiser to sell your existing house before you buy another one these days ?? This may fill up your 18 months quite nicely...
Alternatively keep your existing house, and let it out?
If you're not going to be able to buy, then presumably you won't need the equity therefore keep the property and rent it out?
Renting our place is an option and im sure it would rent easily problem is hassle and admin if i relocate 2.5 hours away. feeling i might get a better return out of the cash anyway!
I am in a similar position to the OP. I am moving to a new fixed term (3 years) position which includes a 6 month probationary period. I have just secured a mortgage with Yorkshire BS by proving I had been on a succession of fixed term posts with no breaks and that this was "normal" for the type of work I do. I found HSBC wouldn't even consider my application and therefore it does seem very bank specific.