Annabel contacted us looking for her first mortgage, buying with her partner. She had a clean credit history and a healthy deposit courtesy partly of an inheritance from her late grandma.
Annabel was a post-graduate, and when we first spoke, she was in the process of interviewing for her first job. She had two job offers on the table – one was for a permanent position, so getting a mortgage on that would have been no issues whatsoever. However, she also had another interview lined up for a role that would only offer her an initial 12-month contract.
Getting a mortgage for a contractor is no problem at all if the applicant can demonstrate at least 12 months’ history, but in Annabel’s case with it being her first job she wasn’t able to evidence that.
She didn’t want to take the permanent employed role but got torn because it was of equal importance to her (and her partner) to get onto the property ladder and she knew it would be more comfortable that way.
I was able to present Annabel with two High Street lender options: firstly, we had access to a lender who would grant her a mortgage on her first contract as long as there was 12 months’ remaining on it. It was a very narrow window of opportunity for her because immediately after the job commenced. Then there would be less than 12 months remaining which would push the case outside of criteria.
There was also a second lender who would grant her a mortgage on a first contract but only after she had been in the job for three months. Annabel started the career (which she loved) and after 3 months re-contacted me to ask if the mortgage was still available. It was, and now the clock started ticking again as she and her partner had a further 3 months to find a suitable property always to meet the “6 months’ remaining” element of the lender’s criteria.
Luckily the had kept their eyes on the market and made an offer, sent all their documents over which included three months’ payslips for Annabel and a copy of the contract to evidence there were>6 months remaining on the deal. The mortgage offer was swiftly produced at a competitive rate of interest, and indeed by a stroke of good fortune, it happened to be the cheapest mortgage deal on the market at that time.