To think the financial system works against people who are actually trying to do the right thing?

[AnnaMariaWhiskers]

OK so I know you can't have your cake and eat it, but we're trying to get a mortgage but have been refused. This is because a) we have student loans because we wanted education to invest in our future b) my dh is paying into a pension which has great returns for the future c) I only work evenings so I can raise my preschool age kids so this doesn't count towards mortgage (no family nearby, expensive childcare cancels out any financial benefit)We have no other loans, HP or even sky TV.
Just a boring rant and I know that I am very privileged compared to 99% of the world's population!

[Ilovecrapcrafts]

Yabu. As pp said the amount they'll lend isn't related to credit worthiness, just income. You don't earn enough. Pensions and student loans are incredibly common repayments, I imagine the majority of mortgage holders have one or both.

[Taytocrisps]

When will your student loans be paid off? If you only have 6 months or a year to go then hang on and try again. You'll be a better prospect when the loans are paid off. Good luck.

[19lottie82]

If the OP can't get a mortgage which she feels she should be able to get, but can't afford, I'm guessing the SL's won't be paid off anytime soon as they don't earn enough to make a decent debt in them!

I earned £31k last year and mine won't be paid off for another 25 years if my income stays the same!

[19lottie82]

PS having a student loan isn't a negative factor in itself when applying for a mortgage it just affects your affordability that's all.

[Spartans]

Yabu ..... Mainly because I don't get the 'financial system working against people trying to do the right thing?'

What is the right thing? Everything you have described are life style choices. I don't see how that is 'the right thing'.

Maybe that's the problem, you think your choices would make life easier than it was.

Mortgages are hard to get. I got one when it was easier. But some many people I know managed to get mortgages they couldn't afford and lost their houses.

No idea why your income wasnt taken into account. PT work is still taken into account, or is it a zeros hours contract? Not sure if they will take those into account.

[ppolly]

They don't take temporary contracts into account - which is what I had when we bought many years ago.

[19lottie82]

Mortgages aren't really hard to get. As long as you maintain a good credit report and be realistic as to what you expect to borrow.

[WorktoLive]

What deposit do you have and what income multiple are you looking at?

Lenders websites usually give details of what they are willing to lend, eg 3.5 x main salary plus once x second salary, up to 90% of the property value.

Are you within guidelines or are you expecting to borrow more and/or have a lower deposit?

It is also worth going direct to some lenders. HSBC do some of the best deals on the market but only sell direct, so are not available via brokers.

[tvlover1234]

Worktolive HSBC was available to our broker x

[MillionToOneChances]

Some top mortgages are extremely hard to get. My sister was barely able to get 2x salary with the mortgage lender of her choice, and that was with more than 50% deposit and very low outgoings.

[WhatifIdid]

What pisses me off is when your actually twice the amount in fecking rent than the mortgage they tell you you can't 'afford'

[WhatifIdid]

*actually already paying

[SpecificOcean]

Can you save more towards a deposit?
It can only help. Doing a budget will help you squirrel away as much as possible. Definately need to include your earnings. Keep saving in the meantime, things will work in your favour eventually - dh may get promoted, you may be able to increase your hours when lo's at school etc.

[avocadotoast]

They don't just take into account what the mortgage will cost now, though; they also look at what the payments would be if interest rates were to rise. Could you still afford the payments on the mortgage you're trying to get if rates did jump up?

We took out a 95% mortgage last year. It is risky. If rates rise we'd struggle a little but we'd manage.

How much does your OH pay into his pension as a percentage of his income? Is it something you could reduce?

[Binit]

You definitely need to see an independent mortgage broker. They have more knowledge of the current decisions lenders and making and where they have got mortgages for people in a similar situation to you. Some are much tighter than others. They also have contacts in these places - they can ask their contacts whether your application is likely to be accepted or not and then you can apply accordingly.

I'd never dare to apply for a mortgage without the help of a person like this. I used this guy, so did 2 of my siblings. We all got mortgages accepted. Even though I was on mat leave at the time, even though my db and SIL needed to borrow a very substantial amount compared to their incomes.

[tvlover1234]

I agree with binit. We have a total income of 31,500 and we're borrowing 140,600! Mortgage brokers are definitely way to go

[DoJo]

Mortgage rates are expected to rise around 2% in the next couple of years - affordability is crucial at the moment and many deals have limited availability because of this.

[tvlover1234]

Ego. As stated before where are first time buyers and have a 95% LTV mortgage. Our mortgage repayments will be considerably lower than renting a 3 bed house in our area. We also have no commitments other than running our cars.

[tvlover1234]

Also our mortgage is for 35 years as we are 20 years old.

[LionessAtHeart]

They don't take temporary contracts into account
Actually some will.
I got my first with a fixed term contract with 1year left - that was in 2010 - that was four times our joint income, with 10% deposit.
Then I got one with only 1month left on my contract in 2012 (Halifax were only bank willing to touch us) - they were willing to give us 4x joint income, we only needed 3xjoint. That time we did have a 25% deposit (we made a lot on our first house despite buying in the slump - picked it well).

You have to talk to them. It helped that I'd had various temp contracts with same employer since 2008. We had also done a full budget spreadsheet to demonstrate that we could pay even with loss of my income (which for the house we bought in 2012 we knew would actually be necessary as DS was due and I was giving up work - not that we pointed that out).

[RedDaisyRed]

I bought before I bred 30 years ago. My parents did too. My grandfather waited until he was over 40 to marry because he couldn't afford not to. I think you have had children before buying so in a sense that was your mistake. Also where both man and woman work full time and don't have children they are always going to get a loan more easily and even if the child is here when you apply if you both have a full time salary even after child care costs particyularly ilf you p icked a high paid career as I did and presumably your husband did (as you say your wages but not his would be the same as childcare - childcare costs are costs of men and women not just women of course in equal marriages). May be it's because you have an unequal marriage where women serve and men earn that you are in this mess?

[Ally1234]

OP I don't understand why your income isn't taken into account. I also work evenings so we don't have to pay childcare for pre school children but income is income. As long as you have a contract and definite hours and income then it should be included.

[EmeraldKitten]

Fucking hell red.

You sound very bitter about something tbh - it's usually only bitterness that prompts a post so full of spite.