Posted on 12 August 2011 by Jo
My boyfriend and I are thinking about buying our first home. We are desperately saving a deposit and have secured the help of a family member to top this up (having said that, we may still only have a 10% deposit available, which I understand to be pretty much the minimum required). My boyfriend works for a local authority and is in a secure position. Our problem is that my employment, also with the local authority is based on a temporary/casual basis. However, I have been there continually now for 2 years and plan to continue. (I am also applying for permanent posts as we speak!). I am a 28 year old graduate and have been in employment (other then when in FT education) since I was 17. My question is, can we expect any lender to even consider me, as my contract is not permanent? Can you offer any advice with how to go about asking for this and presenting our case as positive to a lender? Also any suggestions for lenders that may consider us? Does the fact that we are looking to borrow 90% go against us in this instance?
There are lenders who will look at temporary contract workers and base their decisions on a continuous period of employment together with the likelihood of you being able to continue working in the future. You should ask you employer if they would be willing to confirm in writing that they see no reason not to renew your present contract when it comes to an end. If you are employed on a casual basis you are going to find it far harder to get a mortgage.
With regards to your deposit there are more Lenders who now offer 90% LTV mortgages than over the last couple of years and I think it should be possible to find one who is at least willing to consider an application from yourselves. You will need to show that you are both willing and able to make the mortgage payments. For instance a history of rental payments at the same level as the anticipated mortgage payments will stand you in good stead or even a personal loan which has been paid on time and in full each month. A history of credit card payments with no arrears can also demonstrate that you are able to manage your finances. John Charcol has a specific scheme aimed at FTB buyers in conjunction with Saffron Building Society which is based on providing a mortgage that matches your private rental payments.
If you haven't done already you should check whether or not you are eligible for a property on one of the Governments shared ownership or shared equity schemes. These provide affordable housing for First Time Buyers and Key Workers with the added benefit of Lenders usually only insisting on a 5% deposit. The excellent Government website: http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/HomeBuyingSchemes/DG_4001347 has all the information you will need to explore this further.
I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to offer further advice on your situation.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.