Do I have a chance at all of getting a mortgage

[letitbegreat]

I work term time in a school for 3 hours 5 days a week. Unfortunately property prices seem to have gone up so much that I will need a mortgage - although I have a large deposit.
I have not sold my property yet.

Has anybody got any advice on what to do or where to turn to?

Any recommendations and advice will be greatly appreciated- I am getting worried.

The mortgage calculator says they will not lend me any money.

Back to the drawing board.

Part ownership by paying cash where you are now, then in a few years once you have more hours and job security you could get a mortgage for the remaining share?

I probably only need £30,000 - £40,000. If house prices hadn't gone up so much it would have been less than that.

I think maybe getting something smaller and not ideal is perhaps better than being priced out when my property sells.

I didn't expect this craziness in the market of bid wars that I've been hearing about and barely anything coming in the market.

I think with a zero hours contract or no permanent contract you’ll struggle. In your position I would either change job, or take another job (with a contract) for long enough to get the mortgage, not sell at the moment, or try to buy something with the equity. Could you improve your London place (paint/ basic kitchen makeover/ de-clutter etc)? Sometimes doing a bit of work can really make a difference to the price. Or could you rent the London place out for a few years to add to your deposit?

Hernwatcher thank you for this advice.

My place is fully refurbished, modern and stylish; a reason why I am loathe to rent it. How do I protect myself from people not paying rent and trashing my refurb. I have had bad experiences in the past but if there is a better way to rent it, I would love some advice as I know this is an option.

The garden needs work but that has been priced into it.

I have been looking for a second job to go with the one I have.

If I bought something smaller around here and kept the rest of the money in the bank would that be a bad move. I can't sleep as I am so worried about making the wrong decision.

I don’t think that buying somewhere mortgage free where you are and keeping some money in the bank would be a bad move at all but I would try to make sure you won’t want to move again in a couple of years- so maybe something liveable but with potential? I’d definitely also do the garden of your London place if you decide to sell as gardens are selling houses post-lockdown. If you watch a few programmes like garden rescue/ love your garden you’d definitely be able to do a lot yourself.

On the rental issue, I’m not sure how best to avoid nightmare tenants. I’d suggest maybe posting on a landlord forum? Estate agents will vet for you, couples or single females are better than sharers and make sure you charge a good deposit so that minor stuff can just be repaired- if you’re getting a decent rent then it might be worth the risk. I would have a go at selling, get something near you if you can (without a mortgage), but if not definitely consider renting. Have you considered Airbnb, or if not just renting a room out (if a 2 bed) so you can still go at the weekend occasionally and check what they’re up to?

You really need to consult a mortgage broker. A lot are free so nothing to lose. If you have a mortgage free property in London your deposit must be huge. In theory you'll be zero risk to the bank as in worst case scenario and they had to repossess, they would be able to recoup the loan even if the property sold at a loss. Obviously the zero hours contract will make a difference and affordability would need to be checked as I assume there are rules they have to follow so they don't lend to people knowing there's a high chance of repossession. Definitely worth checking out though, as yours isn't a normal scenario. Good luck!

It is a one bed maisonette with a large wide garden and side access.

Heronwatcher thank you for your advice. I was thinking about renting just a room,so that I have access and can keep an eye on the place.

If I bought a smaller place it wouldn't really be liveable as there is not much about and there are only tiny places. Prices have gone up so much in my area and I have a child that goes to secondary school.
I would like to do the garden eventually.

CellophaneFlower - thank you for your suggestion. The thing is although it is a zero hour contract strictly speaking the hours are fixed and reliable. We should have a permanent part time contract (which was what the job was advertised as).
Would going to a broker show up on credit reports?

It seems very hard to be able to find permanent contracts.

No, going to a broker won’t show up on credit reports. A broker knows the market so will take all of your info and will have a pretty good idea of who will lend to you. It only goes on your credit report when a mortgage application is made.

Ok, that's good thank you.

Thank you the grumpy goat.

Most lenders don't offer mortgages under 50K (this means your salary must be above £12.5K). Your other option is to get a personal loan up to 25K. Find a broker and they will be able to give you more details about current deals. Market is indeed crazy at the moment but as you're already renting you need to either sell or rent the London property. Difficult to say if your asking price is realistic - what do you think? How many offers did you get?

I meant you need a minimum salary of 12.5K because multiplied by 4 this would allow you to borrow £50k.

You have to keep trying to find a permanent job too.

On a very low wage and a zero hour contract it won't be easy to get a mortgage at all. Why cant you sell and buy somewhere without a mortgage. Or rent out the house you own.

aLittlel1fe

Thank you that is useful to know r.e minimum of £50,000 mortgage.

Do brokers deal with personal loans too?

The estate agents showed me similar properties in my local area that had sold for similar prices. They got the asking or just below. That's what they said anyway. They the garden is my unique selling point.
However, I have had just one offer of £30,000 under. I didn't even counter it.

I have heard others on here say that estate agents have been encouraging people to put low offers in on flats.

Hi Viviennemary

Because prices have gone up where I live I am struggling to find anywhere that I can afford. Also there is a complete lack of stock at the moment that would suit me.

Thanks for clarifying. Unless I had to I don't think I'd take on even a small mortgage at the present time in your circumstances. There is a lack of stock in a lot of places. Hope you get sorted but don't rush into anything.

Yes I don't think I should rush into anything either. It has been stressful wondering the best move to make.

I think I will carry on trying to get a permanent contract.

Do you prove a permanent contract with a letter from the employer? Is this what the broker and lenders ask to see?
Bank statements and payslips?

Is your property somewhere you could let out on short/holiday lets through an agency. They will arrange cleaning and so on. And expenses will be tax deductible.

Yes I suppose I could but after horrifying things happening when close family members have rented, I would want air tight insurance.
I find it so difficult to get specialised information as all the info is so confusing.

I come to mumsnet as you get good advice that is more up to date.

MN is fine but moneysavingexpert forum has a lot of excellent posters able to give advice, with the caveat that you should always speak to a qualified independent financial advisor before making any decisions.

Suggest you type up the whole situation in one explainer post and ask for ideas on options. Would really help to see figures, you don't have to be exact.

A 1 bed flat in zone 6 London is a very different proposition to one in zone 1.

What can you afford without the mortgage?
Is there a compromise i.e. if you ideally need 3 beds, could you buy a 2 bed now and look to extend into the loft in a few yeas when you are able to increase your hours? Or could you buy somewhere that needs improvements & do these gradually (you might find it easier to get, say, kitchen finance than to get a very small mortgage).

It is a 1 bed garden maisonette in zone 4 west London.

I could afford a flat without a mortgage, but the really nice spacious ones have gone up now too, so I could not even get one of them without a mortgage now. Plus I really do not want a flat anyway.

2 bed little houses (which is all we need) are even out of reach now without a mortgage.

1 bed starter home is in reach but a lot of them have electric heating which I loathe. Plus a 1 bed is no good for the 3 of us.

Also, from what I have been reading about people outbidding each other and everything selling like hot cakes it seems a bit daunting.