Discounted Purchase Price
Lenders will usually only consider lending against the value if you are buying at a discounted purchase price from a member of your family. In this instance there are several banks who will consider lending you 100% of the purchase price and you would not need to put down any personal deposit.
As the vendor is an unrelated third party, then you would need to put down a personal deposit of at least 5% (possibly more in some cases) and they would want to know why you have been able to agree a reduced purchase price. Quite often the reduced price merely reflects the fact that they haven’t been able to sell at the original asking price.
Lenders are quite reluctant to lend where you don’t have permanent employment or a long trading record if you are self employed and they currently view anyone on a zero our contract as an unnecessary risk. However, depending on your individual circumstances, it could be possible to find a lender who is willing to offer you a mortgage. They will want to know such things as the terms of any current contract, how many times it has been renewed, your wife’s previous experience in her field of work and together with your credit records they will be in a position to assess whether this is an application they would consider, The trick is knowing which lenders to talk to. The majority of the high street banks and building societies rely on their computer systems to tell them whether or not to accept an application, whereas you need a lender who will make an assessment based on their experience of the mortgage market. This is where a good quality independent mortgage broker can prove invaluable advice.
