Mortgage experts? Mortgage on 1 permanent and 1 temporary wage?

[mumnosGOLDisbest]

DH and I have a mortgage with about 70000/20 yrs left. We want to move to a better catchment area in the next 2-3 years. My job is permanent and an ok salary. DH is temporary/agency (but been there for 2 years) and on minimum wage. We would need a mortgage to pay for a house worth £150000, have paid and added value to sum of about 30000. My questions are:

1. could we get a mortgage when DH isn't permanent?
2. Would we ever get a mortgage for this amount? (Total income is about £40000 per year)

It's around 2 years since I was working as a mortgage adviser (high street bank) but we wouldn't have accepted your DH's salary for a mortgage with him being agency staff.

Sorry, I'm not clear - do you mean you will need to borrow, in total, £120 000 ?

Thanks for replying.
Yes i think so (to 120 000). I didnt think dhs wage would count :( we really need to move soon before ds goes to secondary school. The local school is rubbish and its a big gamble to stay put and apply for my second choice school which may have extra spaces(my 1st choice is only ever open to catchement area). DH has been looking for permanant work for years now but counted himself lucky he has a job at all.

Well, if dh is on min wage, I'm guessing that works out around £12 000, so if your total income is £40K, I'm thinking they will be doing the calculations on about £28 000. Sorry, but that is more than 4 x your salary you are looking to borrow, I just don't think it's easy to find those types of mortgages any more.

Thanks anyway. I guess we better keep our fingers crossed for a new job for DH or a lottery win! No way is DS going to the local school :( It's so frustrating that DHs work wont give him a permanent contract. He's been there long enough! That's a whole other thread though

Have you tried London and Country? They look at all the mortgage offers available including ones that don't mind freelancers. I obviously have no idea if they can find you the amount of loan you want, but it is worth a try as in the last month two different friends got their mortgages via L &C and both are SEmployed lowish earners.

Thanks Agnes i'll definately take a look. This was only ever meant to be a step on the ladder but it feels like we're stuck here.

Ok ive been looking at houses in a cheaper village but still in catchment for a better school. Anything beats where we are now :( how do they work put your potential mortgage? DH thinks 3x 1 wage or 2x a joint wage. Is that right? Either way we're still short! You'd think on 2 F/T wages (if DH ever finds a permanent job) we could afford an ok house in an ok area :(

Depends, most places will work now on both income and expenditure so if you have any debts - loans, credit / store cars, car finance etc try to pay them off ASAP as they will make a massive impact on what you can lend :)

We were not allowed to count my salary from my temporary job when dh and I applied for our first joint mortgage (but this was 14 years ago) - it might have changed now?.

In hindsight it was a good thing as we borrowed well within our means and when I did get a permanent job just a few weeks later we actually felt quite flush.

Fingers crossed for a permanent job for your dh soon.

Thanks mintyy unfortunately things haven't changed but luckily i haven't any debts. I used an inheritence to pay off student debts and invest in our current house,however due to the current slump if we sell at the top valuation i would just break even.

3.5 times salary is normal, 4 times is possible.....

Ooh titchy thanks. I hope you're right. With 3.5-4X we might even find a bargain in our 1st choice village and could probably get something in our 2nd choice. Just hope we can do it before ds is ready for secondary school!

I understood it was 3.5 x 1 salary, and surely it's got to be in your favour if you can show you've been good customers (no defaulting or late payments etc) over the last 5 years, rather than being an unknown quantity? Add into that the fact that your dh has been earning regularly for the last 2 years, even if he doesn't have a permanent contract - again, it's got to be seen as a positive.
I know I might be stating the obvious, but some serious saving over the coming year to 18months could not only help to show you can 'afford' a slightly bigger mortgage, but of course will reduce the amount you need to borrow.

All sounds like common sense. Will definately get saving again soon. On mat leave at the mo so just about covering the essentials. I know we can tighten our belts and manage a bigger mortgage just need to prove it.