Posts: 0
Threads: 0
Joined: May 2006
Hey all, i have finally reached that dreaded point in life where i am looking at getting a mortgage to setup my first home.
Myself and my girlfriend went to a local mortgage advisor yesterday at an estate agents to ask for advice and we were told the following:
To get a mortgage with just my girlfriends salary (non archaeologist) of 17k, we would get approximately 50k to play with, which is nothing.
If i got a permanent job, most probably outside of archaeology, earning 12k at the mininum, we could get upto 140k. how an extra 90k from a 12k salary can be achieved i dont quite understand.
Now if i stayed in archaeology, digging as i currently am, he said that not many brokers would touch us because of the lack of a permanent contract and those that did, wouldn't offer a particularly good deal. Even though if i stuck to pipelines i would be bringing home double per year than my girlfriend.
I feel that the advice we were given wasnt particularly useful as the advisor seemed to be stating that unless i got a permanent contract then i would not stand much of a chance in getting a mortgage.
I do not want to be forced out of archaeology purely because of a bank but setting up a home is a priority. I know many archaeologists must have come across this problem before and many be able to offer some advice.
With the current situation within the proffession today, the fact that it is a diggers market, keeping a salary coming in isnt that much of a problem, even when switching units.
Use your archaeological imagination
Posts: 0
Threads: 0
Joined: May 2004
I'd be interested to know about this one, as I'm approaching a similar situation. Was this an independent advisor? I had a mate who got a mortgage based on having a grant to do a PhD, which obviously ran out in three years. I thought you could get self-certified mortgages, where you could take a stab at what your income will be. If you pipelined it, and overpaid the mortgage, you could save plenty of money in interest.
What do other building industry subcontractors do?
Also, there have been offers on these fair pages of permanant contracts, but you would have to get a home near the office.
Posts: 0
Threads: 0
Joined: May 2006
It was an advisor based at a local Haart estate agents, hopefully a bank may be more helpful, i may even have a look at the various lenders on the internet to see what they say.
Pipelining would be a good way to build up the cash fast but working a 70 odd hour week, living away from home would be a huge strain that i doubt i could continue for a number of years (been on this pipeline since feburary and im feeling the strain alittle!).
I could get a job back at a local unit which should in theory keep me in employment for an indefinate peroid, but they never gave me a contract when i worked with them which wouldn't help the situation as i'd still be classed as a temporary/casual worker. even if they did give me a contract, it would be a rolling job by job contract, not the fabled permanent position.
Posts: 0
Threads: 0
Joined: Jun 2005
You were given duff advice Im afraid - yes archae salaries are low but we are not the lowest of the 'professions' - good luck stick in here you can do it
I bought my first house in 2000 with my girlfriend (now wife) stretched ourselves unbelievably - but made it - just. Yes prices were cheaper then but so were wages - shockingly so
A trowel is a thing to lust for!
Posts: 0
Threads: 0
Joined: Jun 2004
I used a broker recommended by the Guardian newspaper. They do all the work with no fee (the lender pays them for the business). I can't think of the name off the top of my head. You should be able to borrow about four to five times your income. Also you can take on a lodger(s). I think you can recieve about £4.5K a year, tax exempt, by doing this. Every bit helps.
Posts: 0
Threads: 0
Joined: Jul 2004
Never ever use an Estate Agent or bank for mortgage advice - always go to an independent broker or do it yourself. The BS and bank have generally only one set of limited products to sell, and their aim/job is to maximise return for their employer. They also seek to sell you other products like expensive insurances that you can either get cheaper elsewhere or don't realistically need.
Posts: 0
Threads: 0
Joined: Oct 2005
I'll line up with Voice of Reason re the banks and BS view on the mortgage business - my own bank (with which I had been banking for 20 years at the point of application) offered me less money at a higher interest rate than a broker sorted.
RAmen
Posts: 0
Threads: 0
Joined: Apr 2007
I got my first mortgage just over two years ago on £15.5k (perm. contract) and was able to borrow £74k. I had £3.5k to bring as a deposit. I realise that house prices have gone up since then. My husband was discounted from the equation as his income was irregular and his overdraft was large.
I found lots of places would only do the standard 3x salary thing to start with. The key was to get past the initial person on the desk to talk to a specialist advisor. You then had a chance to convince them that whilst your income wasn't much you could patently save/manage that money. Also if you can demonstrate that you've had almost complete employment despite temporary contracts then that should work in your advantage. You can also make noises about taking out mortgage payment protection insurance so should you end up out of work it would cover the payments for a while (although if you do take it shop around for a good deal).
My mortgage is with a high street bank and is specifically designed for first time buyers - the first three years are interest only and then it reverts to a repayment mortgage. Basically that means that you pay less the first three years and then a slightly higher repayment the remaining twenty-ish. It has the advantage that by the time the higher payment kicks in you should have seen some promotion/payrise.
It may not be feasible but another option is to see if someone will guarantee the mortgage on your behalf (e.g. parent or sibling).
Posts: 0
Threads: 0
Joined: May 2006
Definitely go and see an Independent Financial Advisor (it always amuses me that that's IFA.....), they have the flexibility to look at lots of packages not just at one lender. If you can show a good period of time working, whether in one position or many (and by that I mean wage slips) then they should be able to get you a reasonable deal.
Out of interest, I'm on my second house, and myself and the ex-husband have always worked in Archaeology. We often didn't tick the boxes for the standard lenders, but that doesn't mean you have to go for a more expensive deal, just that your financial advisor has to work a bit harder!
Good luck!
Posts: 0
Threads: 0
Joined: Jul 2005
When I and my wife got our first mortgage, I was an itinerant site supervisor on short-term contracts, moving from unit to unit, and my wife was on a 3-year fixed term contract in a (non-archaeological) field notorious for poor job security.
The view taken by the mortgage companies at the time was that people on permanent contracts weren't really any more secure than those on short contracts, because most of them could be made redundant at 1 month's notice.
1man1desk
to let, fully furnished
