The clients: Our clients were buying their first home together. She is an employed contractor on a one-year contract with an eight-month probationary period and he is a self-employed company director.
Before this, the contractor was on a six-month contract with the nursing and midwifery council; prior to that she had taken time out from August to December 2019 to look after her children.
Numerous lenders were sourced but most were unable to accommodate our clients because of the gap in her employment history over the past two years, combined with the probation period on her current contract. Her husband had two years’ tax calculations and overviews so his income/earning history was not an issue.
Key requirements: –
• A lender comfortable with first-time buyers with one of them a day rate contractor on a one-year contract with an eight-month probationary period. • But, a lender comfortable with that applicant’s disrupted employment history over the past two years.
After sourcing the mortgage market, we identified a lender who would agree to lend to the couple. We recommended a two-year fixed-rate mortgage; once the two-year period comes to an end, we will find a better rate for them as she won’t be on probation and there will be no gaps in her employment history over the past two years.
The Application Process
In the other words, the application process: To support the mortgage application, the clients supplied us with evidence of her fixed-term contract and their income, as well as proof of identity. We were delighted to inform our clients that the lender had issued a formal mortgage offer for the full amount requested.
Existing Property value: £285,000 Loan amount: £214,779 LTV: 75% Rate: 3.18 per cent fixed for two years Lender product fee: £999 Monthly payment: £1,038.73