first time mortgage advice

[kevinc]

I'm currently hoping to start the wheels turning in regards to getting a mortgage but i just have a few queries that would be great to get some answers from.

1. I'm not sure what to say what my earnings are when applying for a mortgage. I currently get paid by the hour and have a lot of flexibility with regard to how much hours i can work. if i work a six day week for example i can cover 54 paid hours, as opposed to working the minimum of 4 which would give me 36 hours. Naturally it makes it kind of difficult to quote what my annual income would be.

2. Is it possible to get a loan to cover the deposit on my mortgage? would it affect my eligibility. are there ways of getting around it?

3. what sort of criteria do you need for a 95% mortgage? is it more expensive?

 

[dewdrop]

i feel your best course of action is initially call into several mortgage brokers and have a discussion. do not commit yourself to any one until you have a clear picture of the issues involved. generally speaking it is more difficult to get a mortgage now than in the past.

 

[kevinc]

yeah I'm off to check a broker tomorrow.

 

[LDFerguson]

1. I'm not sure what to say what my earnings are when applying for a mortgage. I currently get paid by the hour and have a lot of flexibility with regard to how much hours i can work. if i work a six day week for example i can cover 54 paid hours, as opposed to working the minimum of 4 which would give me 36 hours. Naturally it makes it kind of difficult to quote what my annual income would be.

Are you self-employed or a PAYE employee? If the former, lenders look for a couple of years accounts to verify your income. If the latter, your employer verifies what your basic income is and what the fluctuating amounts are. If you're PAYE, they'll also look for payslips and a P60 which will show your actual income.

2. Is it possible to get a loan to cover the deposit on my mortgage? would it affect my eligibility.

Bank of Scotland / Halifax are still offering 100% mortgages to First Time Buyers. It's also possible to take out a short-term loan but the repayments will affect your mortgage application. You need to think long and hard before borrowing 100% by any means in this market. Why not wait and save up the deposit instead?

3. what sort of criteria do you need for a 95% mortgage? is it more expensive?

There is a tendency that lenders offering >92% have stricter criteria so you're likely to get a lower amount at 95% than at 92% but there's no difference in the documents you have to produce or the rates.

Liam D. Ferguson
www.ferga.com