Mortgage questions(7 Posts)
I am planning to buy my first home soon with my partner and we are feeling a bit clueless about mortgages, I wondered if anyone had any advice on a particular question? Sorry if I'm posting in the wrong place. Obviously we are researching and will get professional advice, but I was wonderping about how we should apply for the mortgage. I am currently freelancing, but just establishing myself so not earning very much at all. My partner has a permanent job and we are hoping his £28k salary will get us a £100k mortgage.
What I'm wondering is should we apply for a joint mortgage, or would I bring down our chances of getting the mortgage amount we need? Would I otherwise be listed as a dependent instead? It seems sensible that I'm listed on the mortgage, but I don't want to risk not getting one.
We are getting married this year and have a child together already if that makes a difference with the legal stuff.
You should apply jointly so that you have the same rights of ownership on the deeds. Your lack of regular income will not hinder your credit rating ie your joint reportable income.
Thanks for replying. The reason I ask is the 'how much can I borrow' calculator of the first direct website reduces the amount it would lend if you add an additional applicant with no income.
You can go in and see a building society free. They will tell you what you can borrow and what the repayments will be like, as well as current offers. Also, they can give you a piece of paper called a Mortgage in Principal, which is proof you have one lender who would be willing to let you borrow the amount you need for your purchase. We're selling our house at the moment and the agent we're using expects a mortgage in principal from anyone making an offer. I earn very little and the building society are very happy to do it all on my husband's money even though the property will be in joint names.
See and IFA too, they will have better rates open to them than are advertised. They will get you the best deal and sometimes it doesn't cost you anything as they get paid by the lender. They also know what will get approved and how to get around issues. I had a black mark on my credit which if our IFA had done an online application would have been refused. She contacted the underwriter directly, explained situation, did a paper application and he approved.
We have a joint mortgage based on dh salary alone as I'm
Self employed and earn very little because I tend to work around the children.
If you not married you need to be on the deeds.
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