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so, do you think we will be able to get a mortgage?

(16 Posts)
LeftTheBlimminWashingOutAgain Sat 17-Nov-12 15:59:34

we have a deposit of £101000, DH earns £16000 per year, i am due to start a contract with a school i have been working with through an agency where i will be earning £21000 on a yearly rolling contract basis (working as a special ed teacher). we have childcare costs of just over £500 per month for one child. great credit ratings. no other debts. both first time buyers.
what do you think? is it possible? we are looking to borrow £75000 but up to £100000 would be better. keen to get settled before DD starts school. would the fact i'm employed on a rolling contract and childcare costs mean that it is completely out of the question? would it affect our credit ratings if we tried and failed?

Quodlibet Sat 17-Nov-12 16:03:52

You are in a better position than me and DP (we are self employed and earn less than you) and our mortgage advisors have all been confident they could find us a mortgage equivalent to our deposit, which would be 4 or 5 x our joint income. We dont have child care costs though. I think you'd be fine.

LeftTheBlimminWashingOutAgain Sat 17-Nov-12 18:04:05

thanks for the reply quod good luck with your application!

RedHelenB Sat 17-Nov-12 18:27:56

That's more than a 50% deposit so I think you will be fine. They like teachers
;)

LadyKooKoo Sat 17-Nov-12 20:07:10

I think you will be fine but why even mention your childcare costs? I wouldn't.

LeftTheBlimminWashingOutAgain Sat 17-Nov-12 20:27:59

ladykookoo wouldn't we get into trouble for not mentioning it? we pay by cheque every month so surely they would realise?

pmgkt Sat 17-Nov-12 20:38:48

Left you will be asked about dependants and therefore the childcare arrangements. Declare it otherwise it will just crop up further down the line when you have spent money on surveys etc. With regard to your contract when I used to mortgage interview it used to be that if your contract had been renewed at least once, and there was no reason for it not to be renewed again, then it was fine. To be honest even on a temp contract once you have been employed for 2 years your rights are the same anyway. Most mortgage lenders have an affordability or multiples calculator on their web sites so go on there and you will get a good idea of what you can borrow.

SaraBellumHertz Sat 17-Nov-12 20:45:47

I always found it extraordinary that my mortgage company never asked about and had no interest when told about my childcare costs but leapt up and down at my CC debt.

Childcare cost me 2400 PCM and my CC about £80 confused

With a 50% deposit I think you'll be fine

SaraBellumHertz Sat 17-Nov-12 20:46:48

I always found it extraordinary that my mortgage company never asked about and had no interest when told about my childcare costs but leapt up and down at my CC debt.

Childcare cost me 2400 PCM and my CC about £80 confused

With a 50% deposit I think you'll be fine

NotQuintAtAllOhNo Sat 17-Nov-12 20:49:12

Do you get the childcare element of tax credits (if it still exists)?

I think you should be fine.

pmgkt Sat 17-Nov-12 20:52:26

Some companies don't take the tax credits into account because they are reviewed too often and can be withdrawn whenever the government changes their minds

LeftTheBlimminWashingOutAgain Sat 17-Nov-12 21:28:03

hi we've been on the affordability websites which have said based on our saleries we could borrow about £180000, that is bearing in mind childcare cost but not that i am on a rolling contract. really do not want to borrow an amount that high though, we can get a great house in a lovely area for 170-180k that covers everything we want and more and we would rather have lower repayments and not have to worry whenever something goes wrong with the car/house/general things that crop up.
i spoke to someone at halifax today who said that i come under the "special excemptions" regarding the rule about the contract been renewed already because of my profession.
but when i spoke to lloyds informally it was an outright no, which puts in to my mind doubts about what halifax said because they are the same group (aren't they?).

Quodlibet Sat 17-Nov-12 23:08:13

I'm sure you will find a lender that will accommodate you - my sis got a mortgage last year whilst on a 1 yr teaching contract. All lenders are different but from what I understand with 50% Ltv they will be very keen to lend to you.

dikkertjedap Sat 17-Nov-12 23:21:09

You probably will be able to get a mortgage, whether it is wise in the current climate is another question. Depending on where you want to buy house prices might still go further down. Personally, I would not buy at present.

houseofpox Sun 18-Nov-12 03:56:56

Both our houses have risen over the past year. It depends where you live.

RedHelenB Sun 18-Nov-12 07:53:39

I got a mortgage with the Halifax working on a supply basis & they took tax credits & child benefit into account, so the person at the Halifax could well have been right.

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